Q3 2026 Interim Financials

AS AT AND FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025

The accompanying notes are an integral part of these Financial Statements.

Approved on behalf of the Board of Directors:

[signed] "Richard McHardy" [signed] "Donald Archibald"

Richard McHardy, Director Donald Archibald, Director

[UNAUDITED]

Three months ended September 30

Nine months ended September 30

The accompanying notes are an integral part of these Financial Statements.

(CA$ thousands) [Note]

Share capital

Contributed

surplus

Retained

earnings Total

The accompanying notes are an integral part of these Financial Statements.

Three months ended September 30

Nine months ended September 30

The accompanying notes are an integral part of these Financial Statements.

1. GENERAL INFORMATION

   Spartan Delta Corp. ("Spartan" or the "Company") was incorporated under the Business Corporations Act (Alberta) on March 20, 2006. The Company is engaged in exploration, development and production of crude oil and natural gas properties in western Canada. The Company does not have any subsidiaries as at September 30, 2026 (note 19). Spartan's common shares are listed on the Toronto Stock Exchange ("TSX") and trade under the symbol "SDE". The Company's head office is located at 1400, 350 - 7th Avenue S.W., Calgary, Alberta T2P 3N9 and its registered office address is 4200 Bankers Hall West, 888 - 3rd Street S.W., Calgary, Alberta T2P 5C5.

2. BASIS OF PREPARATION
   1. Statement of compliance

      These condensed interim financial statements as at September 30, 2026 (the "Financial Statements") have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") applicable to the preparation of interim financial statements, including IAS 34 Interim Financial Reporting. Certain disclosures included in the notes to the annual financial statements have been condensed in the following interim note disclosures or have been disclosed on an annual basis only. Accordingly, these Financial Statements should be read in conjunction with the audited annual financial statements for the year ended December 31, 2025 (the "2025 Annual Financial Statements").

      The Company's Board of Directors approved these Financial Statements on November 3, 2026.

   2. Basis of measurement

      Unless otherwise indicated, all references to dollar amounts in these Financial Statements and related notes are in thousands of Canadian dollars ("CA$"), which is the functional and presentation currency of the Company.

      The Financial Statements have been prepared on a historical cost basis, except for certain financial instruments which are recorded at fair value as detailed in the accounting policies disclosed in note 3 of the 2025 Annual Financial Statements.

   3. Significant estimates and judgements

      The timely preparation of the Financial Statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ materially from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are reviewed and for any future years affected. Significant judgements, estimates and assumptions made by management in these Financial Statements are consistent with those outlined in note 2 of the 2025 Annual Financial Statements.

3. MATERIAL ACCOUNTING POLICIES

   The material accounting policies applied by the Company are described in note 3 of the 2025 Annual Financial Statements. The Financial Statements as at September 30, 2026 have been prepared following the same accounting policies and methods of computation as the 2025 Annual Financial Statements, unless otherwise noted below.

   IFRS 7, Financial Instruments: Disclosures and IFRS 9, Financial Instruments

   Effective January 1, 2026, the Company adopted amendments to IFRS 7 Financial Instruments: Disclosures and IFRS

   9 Financial Instruments relating to settling financial liabilities using electronic payment systems and assessing contractual cash flow characteristics of financial assets. The Company has applied the practical expedient for financial liabilities settled through electronic payment systems. The adoption of these amendments did not have a material impact on the Company's financial statements.

   1. Future Accounting Changes

      IFRS 18, Presentation and Disclosure in Financial Statements

      In April 2024, the International Accounting Standards Board issued IFRS 18 Presentation and Disclosure in Financial Statements ("IFRS 18") to replace IAS 1 Presentation of Financial Statements. IFRS 18 sets out requirements for the presentation and disclosure of information in the financial statements, including a new structure for the Statements of Net Income (Loss) and Comprehensive Income (Loss), disclosure of management-defined performance measures and enhanced guidance on the aggregation and disaggregation of information. IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, including interim reporting periods, and is required to be applied retrospectively. Upon adoption, comparative-period information will also be presented under IFRS 18. The Company's assessment of the new standard is ongoing and it expects structural and presentation changes to the Statements of Net Income (Loss) and Comprehensive Income (Loss) and Statements of Cash Flows.

      Upon adoption, certain income and expenses will be presented within newly required investing and financing categories of the Statements of Net Income (Loss) and Comprehensive Income (Loss). Interest income and gains (losses) arising from changes in the fair value of marketable securities will be presented within the investing category, as these amounts are generated from assets that earn returns independently of the Company's core oil and gas operations. Other expenses including interest incurred on debt obligations, financing costs of lease liabilities and the accretion of decommissioning obligations, will be presented within the financing category. As a result, these amounts will no longer be included in operating profit (loss). These presentation changes will have a corresponding impact on the Statements of Cash Flows under the new standard.

      The Company will continue to evaluate the impacts of IFRS 18 until adoption on January 1, 2027 including finalizing the identification of management-defined performance measures and implementation of the related presentation and disclosure requirements. The adoption of IFRS 18 is not expected to have a material impact on the Company.

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

   As at September 30, 2026 and December 31, 2025, financial instruments of the Company include cash and cash equivalents, restricted cash, accounts receivable, deposits, marketable securities, accounts payable and accrued liabilities, dividends payable, derivative financial instruments and long-term debt. The fair values of these financial assets and liabilities, excluding debt, approximate their carrying value due to the short term to maturity of those instruments. The fair value of debt approximates its carrying value given it bears floating rates of interest (note 11). The methodologies used to determine the fair value for the Company's derivative financial instruments and marketable securities are described further in this note and note 5, respectively. Lease liabilities are financial liabilities measured at amortized cost.

   The Company is exposed to financial risks arising from its financial assets and liabilities that include credit and liquidity risk, market risks associated with commodity prices and interest and foreign exchange rates. Net income (loss), cash flows and the fair value of financial assets and liabilities may fluctuate due to movement in market prices or as a result of the Company's exposure to credit and liquidity risks.

   Risk Management Overview

   Spartan's risk management objective is to manage and control market risk exposures within acceptable limits, while maximizing long-term returns. The Company uses derivative financial instruments and physical delivery sales contracts to manage market risks. All such transactions are conducted in accordance with the Company's established risk management policies that permit management to enter into derivative contracts, provided that: (i) the contracts are not entered into for speculative purposes; (ii) the aggregate quantity hedged, at the time of entering into the contract, does not exceed 75% of future forecasted average daily production (net, after royalties); and (iii) the contracted term does not exceed 36 months.

   1. Credit Risk

      The carrying amount of cash and cash equivalents, restricted cash, accounts receivable, deposits, marketable securities and derivative financial instrument assets represent the Company's maximum credit exposure. Cash and cash equivalents and restricted cash are held on deposit with Canadian chartered banks and collection risk on derivative financial instrument assets is mitigated by a cross-default provision under the Credit Facility (defined herein). The Company's credit risk exposure arises primarily from receivables from oil and gas marketers and joint venture partners.

      The composition of the Company's accounts receivable is set out in the following table:

      (CA$ thousands)	September 30, 2026	December 31, 2025
      Oil and gas customers	75,158	52,175
      Joint venture partners	21,042	7,199
      GST receivable and other	727	2,690
      Accounts receivable	96,927	62,064

      During the nine months ended September 30, 2026, sales to four oil and gas customers represented more than 10% of oil and gas sales (before royalties) and accounted for approximately 69% of total oil and gas sales revenue (before royalties). During the year ended December 31, 2025, sales to four customers accounted for approximately 63% of total oil and gas sales (before royalties). Spartan's oil and gas customers are primarily large, credit-worthy institutions.

      The aging of the Company's accounts receivable is summarized as follows:

      (CA$ thousands)	Current	30-60 days	61-90 days	Over 90 days	Total
      Balance at September 30, 2026	90,304	1,402	1,078	4,143	96,927
      Balance at December 31, 2025	55,786	3,698	574	2,006	62,064

      The oil and gas industry has a pre-arranged monthly clearing day for payment of revenues from all buyers of oil and natural gas; this occurs on the 25th day following the month of sale. As a result, the Company's production receivables are current. All other accounts receivable are generally due within 30 days, however, the collection period is typically between 61 to 90 days. Amounts outstanding for more than 90 days are considered "past due" and relate primarily to receivables from the Company's joint venture partners. When determining whether amounts that are past due are collectible, management assesses the creditworthiness and past payment history of the counterparty, as well as the nature of the past due amount. As at September 30, 2026, management has reviewed the accounts receivable balances and has provided for approximately $1.4 million within the expected credit loss provision ($1.3 million at December 31, 2025).

   2. Liquidity Risks

      Liquidity risk is the risk that a company will not be able to meet its financial obligations as they become due. The Company's financial liabilities as at September 30, 2026 include accounts payable, dividends payable, derivative financial instrument liabilities and long-term debt. In addition, the Company has financial commitments in respect of lease liabilities (note 9).

      The Company prepares and regularly updates its capital and operating budget to forecast future cash flows to ensure, to the extent possible, that it will have sufficient liquidity to meet its obligations. As at September 30, 2026, Spartan had

      $260.8 million drawn ($161.7 million drawn as at December 31, 2025) on its revolving Credit Facility (the "Credit Facility") with an authorized borrowing amount of $700.0 million (note 11).

      The Company has sufficient liquidity for the next 12 months as current cash balances of $151.4 million (cash and restricted cash), future cash flow from operations and access to the remaining undrawn Credit Facility is expected to exceed the Company's financial obligations (including the dividends payable).

      The following table outlines a contractual maturity analysis for the Company's financial liabilities and undiscounted lease liabilities as at September 30, 2026:

      (CA$ thousands)	1 year	2 to 3 years	4 to 5 years	> 5 years	Total
      Accounts payable and accrued liabilities	247,330	-	-	-	247,330
      Dividends payable (note 12)	150,811	-	-	-	150,811
      Derivative financial instruments liabilities	53,547	13,650	-	-	67,197
      Credit Facility (1) (note 11)	20,116	272,538	-	-	292,654
      Undiscounted lease liabilities (2) (note 9)	6,959	3,978	1,763	300	13,000
      Total	478,763	290,166	1,763	300	770,992

      1. The Credit Facility (defined in note 11) was drawn $260.8 million as at September 30, 2026. The table above includes estimated interest to be incurred on the $260.8 million drawn balance and standby charges on the undrawn balance, up to April 30, 2028. All figures presented in the table are calculated based on the Credit Facility's capacity as at September 30, 2026.

      2. As at September 30, 2026, the present value of the Company's total lease liability was $12.1 million, of which $6.5 million in principal repayments are expected to be settled in the next twelve months.

   3. Market Risks

      Market risk is the risk that changes in market conditions such as commodity prices, interest rates and foreign exchange rates, will affect the Company's cash flows, net income or fair value of financial instruments. Spartan's risk management objective is to manage and control market risk exposures within acceptable limits, while maximizing long-term returns. The Company utilizes both derivative financial instruments and physical delivery sales contracts to manage market risks. All such transactions are conducted in accordance with the Company's risk management policies.

      Commodity price risk

      Inherent to the business of producing oil and gas, the Company's revenue and cash provided by operating activities is subject to commodity price risk. Commodity price risk is the risk that future cash flows will fluctuate as a result of changes in commodity prices. Commodity prices are impacted by world economic events that dictate the levels of supply and demand as well as the currency exchange rate relationship between the Canadian and U.S. dollar.

      As at September 30, 2026, Spartan has commodity price risk management contracts in place to protect cash flows and project economics. These instruments are not used for trading or speculative purposes. The Company has not designated its financial derivative contracts as effective accounting hedges, even though the Company considers all commodity contracts to be effective economic hedges. As a result, all such financial commodity contracts are recorded on the Statements of Financial Position at fair value, with changes in the fair value being recognized as an unrealized gain or loss through the Statements of Net Income (Loss) and Comprehensive Income (Loss).

      The table below summarizes average prices and notional volumes contracted under the Company's outstanding financial derivative contracts as at September 30, 2026:

      Crude Oil (1) Natural Gas (1)

      CA$ WTI

      Swaps (2)

      AECO 5A

      Swaps (3)

      AECO 7A

      Swaps (4)

      Period		Volume Bbl/d		CA$/ Bbl		Volume GJ/d		CA$/ GJ		Volume GJ/d		CA$/ GJ
      Q4 2026		7,400		$86.32		-		-		88,424		$2.98
      Q1 2027		4,900		$89.83		-		-		67,500		$3.22
      Q2 2027		4,500		$89.99		1,500		$1.75		44,500		$2.57
      Q3 2027		4,500		$90.70		1,500		$1.75		40,500		$2.55
      Q4 2027		4,225		$90.69		1,168		$2.26		40,005		$2.76
      Q1 2028		2,925		$88.85		1,000		$2.65		20,000		$2.82
      Q2 2028		2,350		$90.22		1,000		$2.19		14,000		$2.22
      Q3 2028		2,375		$89.65		1,000		$2.19		6,500		$2.16
      Q4 2028		1,600		$87.81		337		$2.19		1,348		$2.19

      Asset (Liability) ($67.2 million) ($0.1 million) $20.1 million

      1. The prices and volumes in this table represent averages for contracts represented in the respective periods.

      2. CA$ WTI swaps are translated at the average daily noon rate for the settlement month.

      3. AECO 5A swaps are settled the first day of the month following delivery based on an arithmetic average of the daily AECO index settlements in the preceding month.

      4. AECO 7A swaps are settled the first day of the month based on a weighted average of the previous month's fixed price trades.

      Subsequent to September 30, 2026, Spartan entered into additional natural gas swaps for 2027, 2028 and 2029 (see note 20).

      The fair values of derivative financial instruments are designated as Level 2 in the fair value hierarchy and are highly sensitive to changes in underlying commodity prices. The table below illustrates the stand-alone impact of changes in specified benchmark prices on net income before income taxes, holding all other variables constant, of risk management contracts in place as at September 30, 2026:

      (CA$ thousands)	Change in price	Positive movement	Negative movement
      AECO 7A	+/- CA$ 0.25 per GJ	(7,370)	7,370
      AECO 5A	+/- CA$ 0.25 per GJ	(172)	172
      CA$ WTI Swaps	+/- CA$ 5.00 per bbl	(15,899)	15,899

      Foreign exchange risk

      Currency risk is the risk that future cash flows will change as a result of fluctuations in the Canadian to U.S. dollar exchange rate. Spartan is exposed to currency risk given the Company's realized pricing in Canadian dollars is directly influenced by U.S. dollar denominated benchmark pricing. The Company is also exposed to currency fluctuations through its U.S. dollar commodity sales. In addition, Spartan is exposed to currency risk on U.S. cash, accounts receivable and accounts payable balances, however, the Company's currency exposure based on U.S. dollar denominated working capital balances outstanding at September 30, 2026 and December 31, 2025 was not significant.

      The table below summarizes the realized and unrealized components of the foreign exchange gain (loss) during the three and nine months ended September 30, 2026 and 2025:

      Three months ended September 30

      Nine months ended September 30

      (CA$ thousands)	2026	2025	2026	2025
      Realized foreign exchange gain (loss)	3	51	417	(60)
      Unrealized foreign exchange gain (loss)	1	(1)	1	(14)
      Foreign exchange gain (loss)	4	50	418	(74)

      Interest rate risk

      Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. The Company is exposed to interest rate risk on long-term debt which bears floating rates of interest. Under the Credit Facility (note 11), interest rates fluctuate based on the bank prime rate plus an applicable margin, which varies based on the Company's net debt to cash flow ratio each quarter. Based on the balance of long-term debt outstanding at September 30, 2026, an increase (decrease) in the market rate of interest by 50 basis points would increase (decrease) annualized interest expense by approximately $1.3 million.

      Gains and losses on derivative financial instruments

      The table below summarizes the realized and unrealized components of gains and losses on the Company's derivative financial instruments during the three and nine months ended September 30, 2026 and 2025:

      Three months ended September 30

      Nine months ended September 30

      (CA$ thousands)	2026	2025	2026	2025
      Unrealized gain (loss) - AECO 7A	(2,685)	(311)	10,215	(4,214)
      Unrealized loss - AECO 5A	(98)	-	(98)	-
      Unrealized gain (loss) - WTI	(47,434)	(3,773)	(79,097)	7,646
      Unrealized gain (loss)	(50,217)	(4,084)	(68,980)	3,432
      Realized gain (loss)	(12,672)	11,652	(33,075)	18,118
      Gain (loss) on derivative financial instruments	(62,889)	7,568	(102,055)	21,550

      Offsetting of financial instruments

      Financial assets and liabilities are only offset in the Statements of Financial Position if the Company has the legal right to offset, intends to settle on a net basis and settle the asset and liability simultaneously. Spartan offsets derivative financial instrument assets and liabilities when the counterparty, currency and timing of settlement are the same.

      Carrying Value ("CV")

      Balance as at September 30, 2026 (CA$ thousands) Gross Netting Net CV

      Derivative financial assets - current	19,272	(171)	19,101
      Derivative financial assets - non-current	1,175	(232)	943
      Derivative financial liabilities - current	(53,718)	171	(53,547)
      Derivative financial liabilities - non-current	(13,882)	232	(13,650)

      Carrying Value ("CV")

      Balance as at December 31, 2025 (CA$ thousands)	Gross	Netting	Net CV
      Derivative financial assets - current	18,431	(1,022)	17,409
      Derivative financial assets - non-current	4,440	(22)	4,418
      Derivative financial liabilities - current	(1,022)	1,022	-
      Derivative financial liabilities - non-current	(22)	22	-

5. MARKETABLE SECURITIES

   During the second quarter of 2026, Spartan entered into a share purchase agreement, pursuant to which the Company acquired common shares of an unrelated entity in exchange for the issuance of 2,422,500 common shares. The acquired shares are deemed to be financial assets within the scope of IFRS 9 - Financial Instruments. On initial recognition, the Company measured the investment at fair value as determined using observable market data at the transaction date.

   The investment is accounted for at fair value through profit or loss ("FVTPL"). Changes in fair value are recognized in the Statements of Net Income (Loss) and Comprehensive Income (Loss). The fair value measurement is categorized within Level 1 of the fair value hierarchy, as it is based on quoted prices in active markets for identical assets.

6. ACQUISITIONS AND DISPOSITIONS

   The table below summarizes the aggregate total consideration and estimated fair value of the identifiable assets acquired and liabilities assumed on the respective closing dates:

   (CA$ thousands)

   WG Acq Mar 10, 2026

   (1)(2)

   Gilby Acq May 01, 2026

   (1)(2)

   Other Various

   (2)(3)

   Total 2026

   Cash consideration, after adjustments	12,137	12,729	3,124	27,990
   Exploration and evaluation assets	16	-	1,163	1,179
   Property, plant and equipment (1)	14,122	18,614	2,757	35,493
   Decommissioning obligations (2)	(2,001)	(5,885)	(796)	(8,682)
   Fair value of net assets acquired (1)	12,137	12,729	3,124	27,990

   1. PP&E includes both infrastructure and producing oil and gas properties. The fair value of acquired infrastructure was determined based on the replacement cost with an adjustment for the age and depreciated value of the facilities. The fair value of producing assets acquired was estimated based on fair value less costs of disposal ("FVLCD") methodology (Level 3 fair value measurement), calculated using the present value of the expected future cash flows after-tax. The projected cash flows used in the FVLCD calculation were derived from reports on the acquired oil and gas reserves.

   2. The aggregate fair value of decommissioning obligations acquired of $8.7 million was estimated by discounting the inflated cost estimates using "credit-adjusted risk-free rates" of 6.45% on the respective closing dates of the acquisitions. Subsequent remeasurement of the decommissioning obligations acquired at a risk-free rate, under Spartan's accounting policy, resulted in an increase in the present value of decommissioning obligations acquired by $4.2 million to $12.9 million in aggregate.

   3. During the nine months ended September 30, 2026, the Company acquired additional Duvernay and Deep Basin undeveloped land and minor asset acquisitions as part of its growth strategy.

   Willesden Green Acquisition

   On March 10, 2026, the Company closed an acquisition of infrastructure, producing crude oil and natural gas properties and undeveloped land for cash consideration of $12.1 million after adjustments; the effective date of the acquisition was August 1, 2025 (the "Willesden Green Acquisition" or "WG Acq").

   The Statements of Net Income (Loss) and Comprehensive Income (Loss) for the nine months ended September 30, 2026 include the results of operations for the acquired assets from the closing date of March 10, 2026. Specifically, Spartan's net income for the nine months ended September 30, 2026, includes $0.5 million of revenue (after royalties)

   and $0.2 million of operating income generated from the acquired assets. "Operating income" does not have a standardized meaning under IFRS.

   For purposes of this pro-forma disclosure, the Company has calculated operating income as revenue (after royalties), less operating and transportation expenses. If the acquisition had occurred on January 1, 2026, pro-forma revenue and operating income is estimated to be approximately $0.8 million and $0.3 million, respectively, for the nine months ended September 30, 2026. The pro-forma information provided herein is not necessarily indicative of the results of operations had the acquisition been effected on January 1, 2026, or the results that may be obtained in the future.

   Gilby Acquisition

   On May 1, 2026, the Company closed an acquisition of infrastructure and producing crude oil and natural gas properties for cash consideration of $12.7 million after adjustments; the effective date of the acquisition was March 1, 2026 (the "Gilby Acquisition" or "Gilby Acq").

   The Statements of Net Income (Loss) and Comprehensive Income (Loss) for the nine months ended September 30, 2026 include the results of operations for the acquired assets from the closing date of May 1, 2026. Spartan's net income for the nine months ended September 30, 2026, includes $3.1 million of revenue (after royalties) and $0.3 million of operating income generated from the acquired assets.

   For purposes of this pro-forma disclosure, the Company has calculated operating income as revenue (after royalties), less operating and transportation expenses. If the acquisition had occurred on January 1, 2026, pro-forma revenue and operating income is estimated to be approximately $5.7 million and $1.0 million, respectively, for the nine months ended September 30, 2026 and is based on an extrapolation of the 2025 lease operating statement for the acquired properties. The pro-forma information provided herein is not necessarily indicative of the results of operations had the acquisition been effected on January 1, 2026, or the results that may be obtained in the future.

7. EXPLORATION AND EVALUATION ASSETS

   The Company's E&E assets consist primarily of undeveloped land and seismic. The following table reconciles the change in carrying value during the periods:

   (CA$ thousands)	September 30, 2026	December 31, 2025
   Balance, beginning of year	110,535	82,039
   Additions	27,298	42,449
   Acquisitions (note 6)	1,179	7,467
   Dispositions	-	(5)
   Transfers to PP&E (note 8)	(7,739)	(20,471)
   Expired mineral leases (1)	(56)	(944)
   Balance, end of period	131,217	110,535

   (1) Relates to mineral leases that expired or are expected to expire.

   Spartan assessed its E&E assets for potential impairment indicators prior to transferring costs to PP&E at September 30, 2026 and December 31, 2025 and concluded there are no indicators of impairment.

8. PROPERTY, PLANT AND EQUIPMENT

   The Company's PP&E includes development and production ("D&P") assets and corporate assets. D&P assets include the Company's interests in developed crude oil and natural gas properties, as well as interests in facilities and pipelines.

   The following tables reconcile the movements in the cost and accumulated depletion and depreciation and impairment ("DD&I") during the periods:

   PP&E, at cost (CA$ thousands)	D&P assets	Corporate	Total PP&E
   Balance at December 31, 2024	885,490	2,748	888,238
   Additions (1)	315,523	1,359	316,882
   Acquisitions (2)	10,320	-	10,320
   Dispositions	(42)	(63)	(105)
   Transfers from E&E (note 7)	20,471	-	20,471
   Changes in decommissioning cost estimates (note 10)	(4,519)	-	(4,519)

   Balance at December 31, 2025	1,227,243	4,044	1,231,287
   Additions (1)	418,222	579	418,801
   Acquisitions (note 6)	35,493	-	35,493
   Dispositions	-	(79)	(79)
   Transfers from E&E (note 7)	7,739	-	7,739
   Changes in decommissioning cost estimates (note 10)	(547)	-	(547)
   Balance at September 30, 2026	1,688,150	4,544	1,692,694

   1. During the nine months ended September 30, 2026, the Company capitalized $2.3 million of general and administrative expenses directly related to development activities. For the year ended December 31, 2025, the Company capitalized $2.5 million of general and administrative expenses.

   2. The year ended December 31, 2025 includes PP&E acquisition costs from closing adjustments on transactions completed in the previous year.

   Accumulated DD&I (CA$ thousands)	D&P assets	Corporate	Total PP&E
   Balance at December 31, 2024	300,721	1,712	302,433
   Depletion and depreciation	136,891	583	137,474
   Dispositions	-	(7)	(7)

   Balance at December 31, 2025 Depletion and depreciation Dispositions	437,612 149,490 -	2,288 555 (27)	439,900 150,045 (27)
   Balance at September 30, 2026	587,102	2,816	589,918

   Net carrying value	D&P assets	Corporate	Total PP&E
   Balance at December 31, 2025	789,631	1,756	791,387

   Balance at September 30, 2026

   1,101,048 1,728 1,102,776

   Future Development Capital expenditures required to develop total proved plus probable reserves in the amount of

   $2.5 billion are included in the depletion calculation for D&P assets for the three months ended September 30, 2026 ($2.6 billion at December 31, 2025).

   Impairment of PP&E

   Spartan reviews its CGUs for indicators of potential impairment at the end of each reporting period. As at September 30, 2026 and December 31, 2025, there are no indicators of impairment.

9. LEASES

   The Company has various lease contracts in place for compression equipment, facilities, office buildings and vehicles. Spartan's lease obligations and corresponding Right-of-Use ("ROU") assets are recognized initially based on the present value of the remaining lease payments, except for certain short-term leases which have been charged to general and administrative expenses or operating expenses, as appropriate depending on the nature of the lease, in the Statements of Net Income (Loss) and Comprehensive Income (Loss).

   The Company's lease agreements for processing facilities included a termination option requiring acquisition of the underlying asset upon exercise. At commencement, this option was excluded from lease recognition as a variable lease payment not based on an index or rate. This option was exercisable, at the discretion of the lessor, from May 15, 2026 to June 30, 2026 and as at June 30, 2026, the option expired unexercised.

   RIGHT-OF-USE ASSETS

   The following table reconciles the change in the Company's ROU assets during the periods:

   (CA$ thousands)	September 30, 2026	December 31, 2025
   Right-of-use asset, at cost Balance, beginning of year	65,952	62,781
   Additions	305	3,171
   Lease remeasurement	(1,031)	-
   Balance, end of period	65,226	65,952
   Accumulated depreciation Balance, beginning of year	48,243	39,543
   Depreciation expense	5,585	8,700
   Balance, end of period	53,828	48,243
   Right-of-use asset, net carrying value	11,398	17,709

   LEASE LIABILITIES

   As at September 30, 2026, the present value of the Company's total lease liabilities are $12.1 million, of which approximately $6.5 million is expected to be settled in the next twelve months. A continuity of the lease obligations is provided below:

   (CA$ thousands)	September 30, 2026	December 31, 2025
   Lease liabilities
   Balance, beginning of year	19,195	25,835
   Additions	305	3,171
   Lease payments	(8,115)	(11,109)
   Financing cost (note 15)	1,712	1,298
   Lease remeasurement	(1,031)	-
   Balance, end of period	12,066	19,195
   Expected to be settled within one year	6,521	9,979
   Expected to be settled beyond one year	5,545	9,216

   A contractual maturity of the undiscounted payments due under the Company's lease agreements is provided in note 4 of these Financial Statements.

   The Company has short term leases in place primarily for equipment with contract terms less than twelve months expensed within operating expenses. The total amount expensed in respect of short-term leases was approximately

   $1.2 million during the nine months ended September 30, 2026 (nine months ended September 30, 2025 - $0.9 million).

10. DECOMMISSIONING OBLIGATIONS

    Decommissioning obligations arise as a result of the Company's net ownership interests in crude oil and natural gas assets including well sites, processing facilities and other infrastructure. The following table provides a reconciliation of the carrying amount of the obligation associated with the retirement of oil and gas properties:

    (CA$ thousands)	September 30, 2026	December 31, 2025
    Balance, beginning of year	80,068	82,298
    Obligations incurred	2,839	3,875
    Obligations acquired (note 6)	8,682	2,335
    Discount rate adjustment on obligations acquired (note 6)	4,209	1,421
    Obligations disposed	-	(23)
    Obligations settled	(1,771)	(2,748)
    Changes in discount rate	(7,979)	(8,658)
    Changes in estimates	384	(1,157)
    Accretion (note 15)	2,499	2,725
    Balance, end of period	88,931	80,068
    Expected to be settled within one year	2,750	1,700
    Expected to be settled beyond one year	86,181	78,368

    The underlying cost estimates are derived from a combination of published industry benchmarks as well as site specific information. As at September 30, 2026, the total undiscounted amount of the estimated cash flows required to settle the obligation is $141.4 million ($119.4 million as of December 31, 2025), of which, Spartan expects to incur approximately $69.2 million over the next 20 years, $71.2 million in 20 to 50 years and the residual thereafter. The estimated inflated undiscounted future cash flows required to settle the obligation is $233.5 million at September 30, 2026 based on an inflation rate of 2.0% on average over the restoration period (December 31, 2025 - $195.3 million based on an inflation rate of 2.0%).

    As at September 30, 2026, the carrying amount of the decommissioning obligations is based on a risk-free rate of 4.30% (3.85% at December 31, 2025). The increase in discount rate resulted in a decrease in the carrying amount of decommissioning obligations by $8.0 million as at September 30, 2026 compared to December 31, 2025.

    Key assumptions used in measuring the decommissioning obligations include inflation rate, risk-free rate, and timing of asset retirement, which are subject to uncertainty. Changes in these assumptions would have the following impact on the decommissioning obligations:

    (CA$ thousands)	Change in rate	Positive movement	Negative movement
    Inflation rate	+/- 25 basis points	4,713	(4,427)
    Risk-free rate	+/- 25 basis points	(4,153)	4,433

11. LONG-TERM DEBT

    As at September 30, 2026, debt is comprised of bank debt drawn under the revolving Credit Facility. The balance of debt is presented net of unamortized issue costs.

    (CA$ thousands)	September 30, 2026	December 31, 2025
    Credit Facility	260,800	161,650
    Unamortized issue costs	(2,735)	(1,791)
    Long-term debt	258,065	159,859

    1. Bank debt

       During the second quarter of 2026, the Company completed an off-cycle borrowing base review and amended its Credit Facility, increasing the size from $450.0 million to $700.0 million, converting the facility to a two-year revolving term and removing the financial covenant. The authorized borrowing base is comprised of a $100.0 million operating facility and a $600.0 million syndicated facility. As at September 30, 2026, the Credit Facility was $260.8 million drawn.

       The Credit Facility has a revolving period until April 30, 2028, extendible annually at the request of the Company, subject to approval of the Lenders. The borrowing base is subject to semi-annual reviews, and the Credit Facility may also be subject to redetermination throughout the revolving period. The next borrowing base review is anticipated to be completed on or before November 30, 2026.

       The Company continues to be subject to other standard business operating covenants, including but not limited to certain restrictions on acquisitions and dispositions, distributions and hedging arrangements. As at September 30, 2026, Spartan is in compliance with all covenants.

       The Credit Facility is secured by a first fixed and floating charge debenture over all the Company's assets and a general assignment of book debts. Repayments of principal are not required until the maturity date, provided that the borrowings do not exceed the authorized borrowing base and the Company is in compliance with all covenants, representations and warranties.

       Interest is payable monthly for borrowings through direct advances under the Credit Facility. Interest rates fluctuate based on bank prime rate plus an applicable margin. Under the Credit Facility, borrowings through the use of term Canadian Overnight Repo Rate Average ("CORRA") loans are available at the CORRA rate, plus applicable stamping fees. The Company incurs standby fees on the undrawn facility which also fluctuate based on the pricing grid.

       The Company has a demand letter of credit facility which provides Spartan with $10.0 million of additional credit capacity to issue letters of credit. The letters of credit may be issued for general corporate purposes and are limited to a term of one year from the date of issuance. Letter of credit obligations are repayable on demand. As at September 30, 2026, there are $1.7 million of issued and outstanding letters of credit under the letter of credit facility (December 31, 2025 -

       $1.7 million).

    2. Movements in debt

The following table reconciles movements in debt during the periods ended September 30, 2026 and December 31, 2025:

The Company is authorized to issue an unlimited number of common shares, an unlimited number of preferred shares, and an unlimited number of special shares, each without par value. Common shares carry one vote per share and the right to any dividends declared. The preferred shares may be issued in series, with the Board of Directors determining the terms of the preferred shares on a series-by-series basis.

1. Issued and outstanding

   The following table summarizes the change in common shares issued and outstanding. There are no preferred shares or special shares outstanding as of September 30, 2026 (December 31, 2025 - Nil).

   	Number of common shares (000s)	Amount ($ thousands)
   Balance at December 31, 2024	173,624	13,528
   Equity offering
   Prospectus Offering	25,590	97,753
   Issue costs, net of deferred tax ($1,054)		(3,529)
   Release of restricted share awards	1,297	4,595

   Balance at December 31, 2025	200,511	112,347
   Issued pursuant to acquisitions (note 5)	2,423	37,449
   Stock options exercised	341	1,169
   Transfer value attributed to stock options exercised		366
   Release of restricted share awards	2,387	8,487
   Tax impact of share awards released		4,018
   Balance at September 30, 2026	205,662	163,836

   Dividends and Returns of Capital

   As of September 30, 2026, Spartan continues to accrue $150.8 million of dividends payable as a financial liability and included in restricted cash (December 31, 2025 - $150.8 million). All dividend payments are subject to shareholders meeting certain eligibility requirements. There were no dividends declared or paid during the nine months ended September 30, 2026 (December 31, 2025 - $Nil).

2. Stock options

   The Company has a stock option plan under which options to purchase common shares may be granted to officers, directors, employees and consultants. The Board has approved a policy of reserving up to 10% of the outstanding common shares for issuance to eligible participants of the stock option and share award plans. All stock options have a maximum term of five years and the vesting period for each grant is determined at the discretion of the Board.

   The following table summarizes the change in stock options outstanding:

   	Number of options (000s)	Average exercise price ($/share)
   Balance at December 31, 2024	1,354	3.25
   Granted (1)	4,490	3.63
   Forfeited	(38)	3.46

   Balance at December 31, 2025	5,806	3.55
   Granted (1)	633	10.34
   Exercised	(341)	3.43
   Forfeited	(182)	4.13
   Balance at September 30, 2026	5,916	4.26

   (1) In general, options granted vest one-third per year on the anniversary date of the grant for three years. During the year ended December 31, 2025, 2.8 million options were granted having a vesting schedule of 10% vesting on the first anniversary, 20% vesting on the second anniversary and 70% vesting on the third anniversary.

   During the nine months ended September 30, 2026, 341,000 stock options were exercised (2025 - Nil) at a weighted average exercise price of $3.43 per option. The Company received cash proceeds of $1.2 million (2025 - $Nil) and issued 341,000 common shares (2025 - Nil) upon the exercise of these options. An amount of $0.4 million (2025 -

   $Nil) was reclassified from contributed surplus to share capital.

   The fair value of stock options granted is estimated on the date of grant using the Black-Scholes option pricing model with weighted average assumptions as follows:

   Nine months ended September 30

   	2026	2025
   Risk free interest rate	2.5%	2.7%
   Expected life (years)	3.0	3.4
   Expected volatility (1)	50.0%	50.0%
   Expected dividend yield	0.0%	0.0%
   Expected forfeiture rate	0.6%	3.5%
   Average fair value of options granted ($/share)	3.68	1.38

   (1) Spartan has estimated the expected volatility over the life of the option based on a peer group average for intermediate oil and gas companies. A peer group average was used because the Company's historical share price volatility is not expected to be representative of future volatility due to Spartan's significant changes over the previous three years.

   The following table summarizes information regarding stock options outstanding at September 30, 2026:

   Exercise price	Number of options outstanding	Weighted average remaining	Weighted average exercise price for options outstanding	Number of options exercisable	Weighted average exercise price for options exercisable
   ($/share)	(000s)	term (years)	($/share)	(000s)	($/share)
   $2.94 - $3.39	1,083	2.5	3.12	678	3.13
   $3.40 - $3.93	4,073	3.4	3.64	628	3.64
   $3.94 - $4.27	43	2.6	4.21	29	4.21
   $4.28 - $7.33	98	1.8	4.32	98	4.32
   $7.34 - $10.34	619	4.4	10.34	-	-
   Total	5,916	3.3	4.26	1,433	3.45

   The volume weighted average trading price of the Company's common shares on the TSX for the three and nine months ended September 30, 2026 was $12.62 and $11.57, respectively. During the three and nine months ended September 30, 2025, the volume weighted average trading price of the Company's common shares on the TSX was

   $4.72 and $3.82, respectively.

3. Share awards

   The Company has a share award incentive plan, pursuant to which the Company may grant RSAs and PSAs to directors, officers, employees and consultants of the Company.

   The share awards, being RSAs or PSAs as applicable, granted under the share award incentive plan are intended to be settled through the issuance of common shares upon vesting. The Board of Directors shall not grant new share awards under the plan if the number of shares issuable pursuant to outstanding share awards, when combined with the number of shares issuable pursuant to outstanding stock options granted under the Company's stock option plan, would exceed 10% of the issued and outstanding common shares at the time of the grant. RSAs granted shall vest as to one-third (1/3) on each of the first, second and third anniversaries of the award date and PSAs shall vest on the third anniversary of the award date, unless otherwise stipulated by the Board or Compensation Committee at the time of granting the share award, and subject to earlier vesting in accordance with the plan.

   There were no PSAs outstanding as of September 30, 2026 and December 31, 2025.

   The following table summarizes the change in share awards outstanding:

   Number of RSAs (000s)

   Balance at December 31, 2024 3,483

   Granted (1) 3,551

   Released upon vesting (1,297)

   Forfeited (147)

   Balance at December 31, 2025	5,590
   Granted (1)	1,447
   Released upon vesting	(2,387)
   Forfeited	(156)
   Balance at September 30, 2026	4,494

   (1) The RSAs granted vest one-third each year for three years on the anniversary date of the grant.

4. Per share amounts

The table below summarizes the weighted average ("WA") number of common shares outstanding (000's) used in the calculation of net income per share for the three and nine months ended September 30, 2026 and 2025:

Three months ended September 30

Nine months ended September 30

1. INCOME TAXES

   As at September 30, 2026, Spartan has recognized a deferred income tax asset of $5.3 million on the Statement of Financial Position and the total tax pools available to the Company are estimated to be $1,092.8 million (December 31, 2025 - $876.3 million), of which approximately 34% are non-capital losses ("NCLs").

   The following table reconciles income taxes calculated at the weighted average Canadian statutory rate with the actual provision for income taxes per the Statements of Net Income (Loss) and Comprehensive Income (Loss):

   Three months ended September 30

   Nine months ended September 30

   (CA$ thousands)	2026	2025	2026	2025
   Net income before income taxes	5,864	7,343	43,791	45,207
   Canadian statutory tax rate (1)	23.0%	23.0%	23.0%	23.0%
   Expected income tax expense	1,349	1,689	10,072	10,398
   Increase resulting from: Non-deductible expenses	172	323	573	1,116
   True-up tax pools	303	-	306	-
   Deferred income tax expense	1,824	2,012	10,951	11,514

   1. The Canadian statutory tax rate per the rate reconciliation represents the average combined federal and provincial corporate tax rate.

      The movement in deferred tax assets and liabilities, without taking into consideration the offsetting balances within the same tax jurisdiction, are as follows:

      (CA$ thousands)	Balance at Dec 31, 2025	Recognized in net income	Recognized in balance sheet	Balance at Sept 30, 2026
      Marketable securities	-	1,652	-	1,652
      Derivative financial instruments	(5,020)	15,865	-	10,845
      Accelerated tax basis depreciation	(90,307)	(26,111)	-	(116,418)
      Decommissioning obligations	18,416	2,038	-	20,454
      Right-of-use asset	(4,073)	1,215	237	(2,621)
      Lease liabilities	4,415	(1,403)	(237)	2,775
      Share issue costs	844	(158)	-	686
      Share awards	-	(4,018)	7,598	3,580
      Non-capital losses and other (1)	84,387	(31)	-	84,356
      Deferred income tax asset	8,662	(10,951)	7,598	5,309

      1. The Company expects to have sufficient taxable profits in the future to utilize its NCLs which expire in years 2039 to 2045 and has recognized the deferred tax asset related to NCLs.

   Under IFRS Accounting Standards, deferred income tax assets may only be recognized to the extent that it is probable that future taxable profits will be available against which unused tax losses and deductible temporary differences can be utilized. The Company expects to have sufficient taxable profits in the future to utilize its non-capital losses.

   Uncertain Tax Positions

   On February 14, 2025, the Company received a reassessment from the Canada Revenue Agency (the "CRA") for a previously amalgamated subsidiary that restricts the deductibility of non-capital losses relevant to the calculation of income taxes. The reassessment seeks to disallow the carry forward of approximately $217.8 million of these non-capital losses under the Income Tax Act (Canada). Spartan remains confident in the appropriateness of its tax filing position and intends to vigorously defend it. As such, Spartan has not recognized any provision in its Financial Statements with respect to the reassessment.

   During the second quarter of 2025, Spartan filed a notice of objection for the CRA reassessment and, if necessary, will subsequently file an appeal directly to the Tax Court of Canada. If Spartan is unsuccessful in this matter, then the Company would derecognize the corresponding deferred tax asset resulting in an ending deferred tax liability position, shortening its estimated tax horizon.

   Successored Resource Pools

   In 2023, the CRA processed the Company's filing of a 66.7 election in connection with a previously acquired asset. On July 7, 2026, the Company received a reassessment confirming the transfer of these resource pools to Spartan. The CRA, however, denied certain discretionary claims in relation to these pools made in two of the years at issue, namely the 2021 and 2022 taxation years. Spartan disagrees with the CRA's position on the use of these pools in the aforementioned years and Spartan has sought judicial review at the Federal Court seeking to set aside CRA's denial of the discretionary claims and redetermination. Spartan does not expect the outcome to have a material impact on the Company.

2. OIL AND GAS SALES, NET OF ROYALTIES

   The following table summarizes the composition of Spartan's oil and gas sales revenue by product type:

   Three months ended September 30

   Nine months ended September 30

   (CA$ thousands)	2026	2025	2026	2025
   Oil and gas sales Crude oil	110,554	32,839	246,107	71,376
   Natural gas liquids	65,203	37,894	196,363	118,183
   Natural gas	26,860	12,011	90,955	65,430
   Oil and gas sales	202,617	82,744	533,425	254,989
   Royalties	(27,056)	(9,180)	(67,833)	(32,664)
   Oil and gas sales, net of royalties	175,561	73,564	465,592	222,325

3. FINANCING

   The following table summarizes the significant components of the Company's financing expense, which is presented net of financing income in the Statements of Net Income (Loss) and Comprehensive Income (Loss):

   (CA$ thousands)	2026	2025	2026	2025
   Interest and fees on debt	4,801	1,951	12,643	4,973
   Interest income	(1,076)	(1,241)	(3,225)	(3,839)
   Cash financing expense	3,725	710	9,418	1,134
   Financing cost of lease liabilities	201	307	1,712	1,002
   Non-cash financing expenses	1,494	691	4,105	1,995
   Financing expense	5,420	1,708	15,235	4,131

   Three months ended September 30

   Nine months ended September 30

4. SUPPLEMENTAL CASH FLOW INFORMATION

   Three months ended September 30

   Nine months ended September 30

   (CA$ thousands)	2026	2025	2026	2025
   Accounts receivable	(35,691)	14,845	(34,863)	9,790
   Prepaid expenses and deposits	(2,584)	(639)	(1,653)	(4,196)
   Marketable securities	(6,154)	-	(33,212)	-
   Accounts payable and accrued liabilities	58,995	1,157	132,582	39,107
   Working capital acquired	-	-	37,449	-
   Non-cash change in marketable securities	6,154	-	(7,181)	-
   Foreign exchange	(1)	(1)	-	(14)
   Change in non-cash working capital	20,719	15,362	93,122	44,687
   Relating to:
   Operating activities	(19,682)	1,135	4,439	2,583
   Financing activities	-	(150)	-	-
   Investing activities	40,401	14,377	88,683	42,104
   Change in non-cash working capital	20,719	15,362	93,122	44,687
   Cash payments in respect of:
   Interest and fees on debt 5,260		1,721	14,828	4,988

5. CAPITAL MANAGEMENT

   Spartan's capital management objectives are to maintain a flexible capital structure in order to respond to changes in economic conditions, execute on strategic opportunities throughout the business cycle, meet its financial obligations, and to fund current and future settlements of decommissioning obligations. The Company seeks to create long-term shareholder value by prioritizing profitability over production growth, as well as investing in projects that are expected to strengthen its overall asset portfolio and suite of internally generated prospects.

   As at September 30, 2026, the Company's capital structure is comprised of adjusted working capital, debt and shareholders' equity. The significant components of the Company's capital structure are summarized below:

   (CA$ thousands)	September 30, 2026	December 31, 2025
   Working capital deficit (1)	148,627	36,635
   Adjusted for current portion of: Derivative financial instrument assets	19,101	17,409
   Derivative financial instrument liabilities	(53,547)	-
   Lease liabilities	(6,521)	(9,979)
   Adjusted Working Capital deficit (2)(3)	107,660	44,065
   Long-term debt	258,065	159,859
   Net Debt (3)	365,725	203,924
   Total shareholders' equity	739,575	648,633

   1. "Working capital" is calculated as current assets less current liabilities. "Working capital deficit" represents the amount by which current liabilities exceed current assets at the reporting date.

   2. "Adjusted Working Capital" is calculated as current assets less current liabilities, excluding derivative financial instruments and lease liabilities. As at September 30, 2026 and December 31, 2025, Adjusted Working Capital includes cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and deposits, marketable securities, accounts payable and accrued liabilities, dividends payable and the current portion of decommissioning obligations.

   3. Adjusted Working Capital and Net Debt are not standardized measures and therefore may not be comparable with the calculation of similar measures by other entities. Spartan uses Adjusted Working Capital and Net Debt as capital management measures of the Company's financial position and liquidity.

      Spartan's Adjusted Working Capital deficit of $107.7 million at September 30, 2026 increased from the Adjusted Working Capital deficit of $44.1 million at December 31, 2025. The capital-intensive nature of Spartan's operations may create working capital fluctuations during periods with varying levels of capital investment, however the Company maintains sufficient unused bank credit lines to satisfy working capital deficiencies when they occur. The Company has sufficient liquidity for the next 12 months to meet working capital requirements with the current cash balances of $151.4 million (including restricted cash), future cash flow from operations and access to the remaining undrawn balance on the Credit Facility (note 11), all of which are expected to meet the Company's financial obligations (including the dividends payable).

      During the nine months ended September 30, 2026, the Company's primary sources of funds were $294.3 million of cash provided by operating activities, $96.6 million of bank advances, net of costs, on the Credit Facility, $1.2 million from the exercise of options, and a change of $88.7 million of non-cash working capital in investing activities. Spartan used its cash provided by operating activities, advances on the Credit Facility, exercise of options and the change in non-cash working capital to fund the Company's exploration and development capital expenditures of $446.1 million,

      $28.0 million of acquisitions and $6.4 million for lease principal payments.

      The Company monitors its capital structure and short-term financing requirements using a "Net Debt to Annualized AFF Ratio", which is calculated by Spartan as the Company's Net Debt (calculated above) relative to its "Annualized Adjusted Funds Flow" (calculated below). The reader is cautioned that "Net Debt" and "Adjusted Funds Flow" do not have standardized meanings under IFRS Accounting Standards may not be directly comparable to measures of other companies where similar terminology is used. Spartan calculates "Adjusted Funds Flow" by deducting lease payments and adding back transaction costs on acquisitions/dispositions and the change in non-cash working capital to cash provided by operating activities. Spartan utilizes Adjusted Funds Flow as a key performance measure in the Company's annual financial forecasts and public guidance because it reflects the net cash flow generated from routine business operations. Adjusted Funds Flow is reported net of cash lease payments in the year, therefore Spartan believes Adjusted Funds Flow is an appropriate metric to compare relative to its Net Debt which does not include lease liabilities. "Annualized Adjusted Funds Flow" is calculated by multiplying Adjusted Funds Flow for the most recently completed quarter, normalized for significant non-recurring items, by a factor of 4; management considers this annualized measure to be more representative of the Company's current financial position than a 12-month trailing measure. Management believes that the Net Debt to Annualized AFF Ratio provides investors with information to understand the Company's liquidity risk and its ability to repay long-term debt and fund future capital expenditures.

      Three months ended (CA$ thousands)	September 30, 2026	December 31, 2025
      Cash provided by operating activities	92,382	66,525
      Change in non-cash operating working capital	19,682	16,696
      Deduct: lease payments	(2,572)	(2,384)
      Adjusted Funds Flow for the quarter	109,492	80,837
      Factor to Annualize	4	4
      Annualized Adjusted Funds Flow (1)	437,968	323,348
      Net Debt	365,725	203,924
      Annualized Adjusted Funds Flow	437,968	323,348
      Net Debt to Annualized AFF Ratio	0.8x	0.6x

      (1) The Annualized Adjusted Funds Flow reflects ongoing operations for the three months ended September 30, 2026 and December 31, 2025, respectively, multiplied by a factor of four (4).

      As at September 30, 2026, Spartan had Net Debt of $365.7 million, which is approximately 0.8 times the Company's Annualized Adjusted Funds Flow for the third quarter of 2026. Net Debt of $365.7 million at September 30, 2026 increased from the prior year primarily as a result of the Company's exploration, development and acquisition activities which created a free funds flow deficit.

      The Company's existing capital resources are sufficient to satisfy its financial obligations for the next twelve months and Spartan is well positioned to execute on its short and longer term growth strategy. The Company's exploration and

      development capital expenditures for 2026 are expected to be funded by a combination of cash provided by operating activities and supplemented by the unutilized Credit Facility during periods of high capital investment.

      As at September 30, 2026, the Company is not subject to any externally imposed capital requirements other than the standard business operating covenants under the amended and restated Credit Facility, to which Spartan is in full compliance (note 11).

6. COMMITMENTS AND CONTINGENCIES

   The following table summarizes the Company's contractual commitments as of September 30, 2026:

   (CA$ thousands)	2026	2027	2028	2029	2030	Thereafter	Total
   Gas transportation (1)	2,639	10,097	6,210	3,447	986	22	23,401
   Capital commitments (2)	9,764	18,959	-	-	-	-	28,723
   Total commitments	12,403	29,056	6,210	3,447	986	22	52,124

   1. Spartan has firm transportation commitments on natural gas pipelines in Alberta until April 2031.

   2. As at September 30, 2026, Spartan has capital commitments of $28.7 million to be spent in the remainder of 2026 and early 2027.

      Litigation

      In the normal course of the Company's operations, it may become involved in, named as a party to, or be the subject of, various legal proceedings, including regulatory proceedings, tax proceedings and legal actions, related to personal injuries, property damage, property tax, land rights, the environment and contract disputes with partners or other stakeholders. The outcome of outstanding, pending or future proceedings cannot be predicted with certainty and may be determined to have an adverse effect on the Company's future operations or financial condition. As of the date of these Financial Statements, the Company has no material litigation or claims outstanding that have not already been reflected in these Financial Statements.

7. RELATED PARTY DISCLOSURES
   1. Inter-corporate relationships

      As at September 30, 2026 and December 31, 2025, Spartan had no subsidiaries.

   2. Related party transactions

   During the nine months ended September 30, 2026, the Company incurred $2.2 million of legal fees to a law firm where the corporate secretary of the Company is a partner (nine months ended September 30, 2025 - $1.3 million), with the fees primarily relating to ongoing legal support. Approximately $0.4 million of legal fees are included in the balance of accounts payable and accrued liabilities as at September 30, 2026 (December 31, 2025 - $0.2 million).

8. SUBSEQUENT EVENTS

Subsequent to September 30, 2026, Spartan entered into additional natural gas swaps for 2027, 2028 and 2029. The table below summarizes average prices and notional volumes contracted under the Company's outstanding financial derivative contracts as of November 3, 2026:

Crude Oil (1) Natural Gas (1)

CA$ WTI

Swaps (2)

Swaps (3)

Swaps (4)

1. The prices and volumes in this table represent averages for contracts represented in the respective periods.

2. CA$ WTI swaps are translated at the average daily noon rate for the settlement month.

3. AECO 5A swaps are settled the first day of the month following delivery based on an arithmetic average of the daily AECO index settlements in the preceding month.

4. AECO 7A swaps are settled the first day of the month based on a weighted average of the previous month's fixed price trades.

5. NYMEX swaps are settled based on the last day of settlement of monthly futures contracts.