Briko Energy Corp. Announces 2018 Financial and Operating Results and Extension of Expiry Date for Briko Warrants

Calgary, Alberta--(Newsfile Corp. - April 29, 2019) - Briko Energy Corp. ("Briko" or the "Corporation") is pleased to report its financial and operating results for the three months and year ended December 31, 2018. Financial and operational information is set out below and should be read in conjunction with Briko's December 31, 2018 audited annual financial statements and the related management's discussion and analysis ("MD&A"). In addition, the Corporation today announces the filing of its Annual Information Form ("AIF") for the year ended December 31, 2018. The AIF contains the Corporation's reserves and other oil and natural gas information, as required under National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities. The AIF, financial statements and MD&A are available for review at www.sedar.com and on the Corporation's website at www.brikoenergy.com.

OVERVIEW OF PLAN OF ARRANGEMENT

On December 20, 2018, Ikkuma Resources Corp. ("Ikkuma"), Pieridae Energy Limited ("Pieridae") and Briko, at that time a wholly-owned subsidiary of Ikkuma, and the shareholders of Ikkuma, completed a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement"), whereby Pieridae acquired all of the issued and outstanding shares of Ikkuma. Pursuant to the Arrangement, in addition to receiving 0.1926 of a Pieridae share for each common share of Ikkuma, Ikkuma shareholders also received 0.1 of a common share of Briko ("Briko Share") and 0.1 of a common share purchase warrant of Briko ("Briko Warrant"). Each whole Briko Warrant entitles the holder to the right to acquire one Briko Share at a price of $1.10 per share until June 28, 2019 (see extension of expiry date to June 26, 2020 below).

Pursuant to an asset conveyance agreement (the "Conveyance Agreement") between Briko and Ikkuma made as of September 21, 2018, Ikkuma assigned and transferred to Briko certain petroleum and natural gas rights and related interests in its Cardium light-oil focused Alberta Foothills properties (collectively, the "Cardium Oil Properties"). Briko, independent of Ikkuma, commenced operations of the Cardium Oil Properties upon the completion of the Arrangement on December 20, 2018.

FINANCIAL AND OPERATING RESULTS

The financial and operating results below present the historical financial position, results of operations and cash flows of the Cardium Oil Properties for the years ended December 31, 2018 and 2017, notwithstanding the date of the Conveyance Agreement and notwithstanding the date of completion of the Arrangement.

FINANCIAL AND OPERATING HIGHLIGHTS

⁽¹⁾Operating netback, net operating expenses and adjusted funds flow are non-IFRS measures. See "Non- IFRS Measures".
⁽²⁾ Before royalties.
⁽³⁾ Deemed to be the number of shares issued by the Corporation upon completion of the Arrangement for the three months ended December 31, 2018 and the total issued shares of the Corporation as at December 31, 2018.
⁽⁴⁾ N/A is defined as Not Applicable.

EXTENSION OF EXPIRY DATE FOR BRIKO WARRANTS

Briko's Board of Directors has approved an extension to the expiry date of the Briko Warrants from June 28, 2019 to June 26, 2020. A formal notification relating to the extension of the expiry date will be mailed to the holders of Briko Warrants in the near future. As of April 29, 2019, a total of 11,205,035 Briko Warrants are outstanding.

About Briko Energy Corp.

Briko Energy Corp. is an Alberta Foothills Cardium light oil focused company with undeveloped land, crude oil and natural gas reserves and a production base with associated infrastructure. Corporate information can be found at: www.brikoenergy.com.

For additional information, please contact:

Briko Energy Corp.
1710 736 6^th Ave. SW
Calgary, Alberta
T2P 3T7
(587) 392-6317
info@brikoenergy.com

John H. Van de Pol
President & CEO
587-392-6317
Kim Benders

Vice President & CFO
392-6317

Forward-Looking Statements and Information and Cautionary Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws including, without limitation, those listed under "Risk Factors" and "Forward-looking Statements and Information" in its filings available on SEDAR at www.sedar.com. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements or information. Although Briko believes that the expectations and assumptions on which the forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Briko cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include but are not limited to the risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; failure to obtain necessary regulatory approvals for planned operations; health, safety and environmental risks; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures; volatility of commodity prices, currency exchange rate fluctuations; imprecision of reserve estimates; and competition from other explorers) as well as general economic conditions, stock market volatility, and the ability to access sufficient capital. We caution that the foregoing list of risks and uncertainties is not exhaustive.

In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. The forward-looking statements and information contained in this press release are made as of the date hereof and Briko undertakes no obligation to update publicly or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Non-IFRS Measures

This press release provides certain financial measures that do not have a standardized meaning prescribed by IFRS. These non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Funds flow from operations, operating netback and net operating expenses are not recognized measures under IFRS. Management believes that in addition to net income (loss), funds flow from operations and operating netback are useful supplemental measures that demonstrate the Corporation's ability to generate the cash necessary to fund future capital investment. Investors are cautioned, however, that these measures should not be construed as an alternative to net income (loss), determined in accordance with IFRS, as an indication of Briko's performance. Funds flow from operations is calculated by adjusting net income (loss) for depletion and depreciation, exploration and evaluation expense, impairment, gain (loss) on sale of petroleum, natural gas and equipment, share-based payments, unrealized gain (loss) on risk management contracts and accretion. Operating netback equals the total of oil and natural gas sales, realized gains or losses on risk management contracts, less royalties, transportation and net operating expenses. Net operating expense is a non-IFRS measure calculated as operating expenses less other income. Other income includes gas processing income earned from fees charged to third parties at facilities where Briko has an ownership interest.

Oil and Gas Advisory

In this press release, the abbreviation BOE means a barrel of oil equivalent derived by converting gas to oil in the ratio of 6 Mcf of gas to 1 bbl of oil (6 Mcf:1 bbl). BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf:1 bbl, utilizing a conversion ratio on a 6 Mcf of gas to 1 bbl of oil basis may be misleading as an indication of value.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/44398