Journey Enters into New Relationship with a Canadian Chartered Bank to Help Accelerate Future Duvernay Development

Calgary, Alberta--(Newsfile Corp. - March 19, 2025) - Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) ("Journey" or the "Company") is pleased to announce it has entered into a new lending relationship with a Canadian Chartered bank.

Journey has secured a new credit facility with a Canadian Chartered Bank, for up to $55 million consisting of three distinct credit facilities (collectively the "New Credit Facilities"). The first facility is a $12.4 million, two-year amortizing term-loan, the proceeds of which have been used to repay the outstanding balance of the Alberta Investment Management Corporation ("AIMCo") term debt. Journey would like to express its sincere thanks to AIMCo for its unwavering support since it entered into a lending relationship with them in 2016. Their assistance and flexibility over the years have been instrumental in getting Journey through the difficult COVID and depressed commodity price years, while allowing the Company to reset itself by pursuing its new Duvernay light-oil venture. AIMCo is Journey's largest single shareholder. The second facility is a $15 million operating facility to be used for working capital needs on a revolving basis. The third facility is a delayed-draw term facility of a maximum of $27.6 million that will be used as needed to fund Journey's Duvernay development. None of the New Credit Facilities are subject to pre-payment restrictions or penalties. Journey has approximately $42.6 million of combined undrawn capacity on the New Credit Facilities as of today.

In December of 2024 Journey commenced production from the initial two wells drilled within the Duvernay joint venture with Spartan Delta Corp. (the "Joint Venture"). Production from these wells have exceeded management's expectations and the next phase of Duvernay development is underway. In 2025 to date, 3 (0.9 net) wells have been drilled and two rigs are currently active. All wells are forecast to be finished drilling by early in the second quarter. Completion operations are forecast to begin in April. This investment is expected to provide a significant increase in production and cash flow starting in mid-2025.

The Joint Venture controls approximately 105 sections of land within the oil window of the Duvernay in the west shale basin. Journey's current working interest in the Joint Venture is 30%. The New Credit Facilities, along with internally generated cash flows, provide the means for Journey to continue its transformation to a higher netback company with improving cash flows. Considering the capital phasing requirements for the Duvernay development, these facilities are expected to provide Journey with a clear line of sight to meet its future funding requirements in 2026, and beyond.