Calgary, Alberta--(Newsfile Corp. - June 19, 2020) - Cuda Oil and Gas Inc. (TSXV: CUDA) ("Cuda" or the "Company") is pleased to release the results of its May 1, 2020 Oil and Gas Reserves Evaluation ("May Reserves Report") for Wyoming and Alberta. Cuda recorded significant progress in maturing its major asset at Barron Flats Shannon Secondary Recovery Unit ("SSRU") in the Powder River Basin of Wyoming.

In the May Reserve Report, Ryder Scott has allocated significant increases to the Company's estimated reserves of Proven Developed Producing ("PDP") increasing by 50% and Total Proven plus Probable ("2P") increasing by 10%, in four (4) months, since December 2019. This third-party validation of the Company's Asset confirms the positive performance of the miscible gas flood project. Production response to gas injection has been realized in 13 of the 33 total producing oil wells in the gas flood area. Despite the current challenging oil price environment, upward technical revisions are anticipated in 2020, as the rates of injection and volumes of miscible gas advances the reservoir towards fill-up conditions.

Field breakeven price of US$15/bbl WTI provides solid cashflow at current oil prices of US$38/bbl WTI and the Company is benefiting from a $2+/bbl uplift to WTI at Guernsey for SSRU delivered crude. The phase one (1) gas flood area is now at record levels of injection volumes at 5.5 MMcf/d. The operator is targeting higher injection levels at 7-8 MMcf/d in Q3 2020.

Oil production continues to increase in wells proximal and adjacent to injection wells. These initial results and bookings align the SSRU project to ultimate recovery results of the adjacent analogue field, the Sand Dunes Miscible Gas Flood ("Sand Dunes"). Over the project life, Sand Dunes recovered approximately 50% of the 48 MMbbls of OOIP or 25 MMbbls. For perspective, the Company's SSRU Project is currently assigned 121 MMbbls of OOIP in the May Reserves Report, in total, 60% larger than Sand Dunes volumetrically. Current simulation modeling by a third-party expert indicates that up to 51 MMbbls to 100% Working Interest could ultimately be recovered in a full field development scenario inclusive of future development capital.

Based on the updated reservoir simulation model, field performance and response to larger injection volumes, the Company anticipates higher production volumes and revenue in H2 2020. Cuda expects to put out formal guidance in Q3/20.

Reserves Report Highlights

All reserves information contained in this press release is based on the May Reserves Report and includes reserves attributed to the BFU, the Cole Creek Unit and Alberta assets. Unless specifically indicated, all financial and operational information in this press release is based on estimates and is unaudited and accordingly, such financial information is subject to change based on the results of the Company's audit.

Proven Developed Producing ("PDP") and Proved Non-Producing ("PNP") Reserves

• The Company's PDP + PNP reserves grew 25% over 2019 reserves to 4,002 Mboe (84% oil and liquids).
• NPV10 of $43.0 Million or $1.18 per basic common share.
• Reserve Life Index ("RLI") based on 1st quarter, 2020 production of 19 years

Total Proved Reserves ("1P")

• The Company's 1P reserves decreased by 3% from 2019 reserves, to 7,371 Mboe (88% oil and liquids).
• NPV10 of $67.7 Million or $1.86 per basic common share.
• Future development costs of $46.4 Million.
• RLI of 35 years.

Proved plus Probable Reserves ("2P")

• The Company's 2P reserves grew 10% over 2019 reserves, to 16,342 Mboe (91% oil and liquids).
• NPV10 of $148.2 Million or $4.08 per basic common share.
• Future development costs of $99.5 Million.
• RLI of 77 years.

Oil and Gas Reserves

The May 2020 Reserve Report represents Cuda's oil and gas properties in Alberta and Wyoming and was prepared in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51 - 101") by Ryder Scott, the Company's independent reserves evaluator. The following table summarizes certain information contained in the May 2020 Reserve Report:

Reserves Category

Summary of Oil and Gas Reserves 1
(company share gross volumes before royalties)

Note:
1. BOEs are derived by converting gas to oil equivalent in the ratio of six thousand cubic feet of gas to one barrel of oil (6 Mcf:1 boe).

Reserve Category

Summary of Net Present Values of Future Net Revenue (Before Tax)4
(based on forecast price and costs)

Notes
1. Forecast pricing used is based on Ryder Scott published price forecasts effective March 31, 2020
2. Per share amounts are calculated on basic common shares outstanding (36,329,139) as of December 31, 2019
3. Forecast pricing used is based on Ryder Scott published price forecasts effective December 31, 2019
4. Estimates of future net revenue do not represent fair market value

About Cuda Oil and Gas Inc.

Cuda Oil and Gas Inc. is engaged in the business of exploring for, developing and producing oil and natural gas, and acquiring oil and natural gas properties across North America. The Cuda management team has worked closely together for over 20 years in both private and public company environments and has an established track record of delivering strong shareholder returns. Cuda will continue to implement its proven strategy of exploring, acquiring, and exploiting with a long-term focus on large, light oil resource- based assets across North America including significant operational experience in the United States. The Cuda management team brings a full spectrum of geotechnical, engineering, negotiating and financial experience to its investment decisions.

For further information please contact:

Glenn Dawson
President and Chief Executive Officer
Cuda Oil and Gas Inc.
(403) 454-0862

Forward-Looking Information

This news release contains forward-looking statements. All statements other than statements of historical fact included in this news release, are forward-looking statements that involve various risks and uncertainties and are based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. In particular, forward-looking information included in this news release includes: (i) Cuda's exploration and development plans, which assume accuracy of technical and geological information and analysis and may be impacted by unscheduled maintenance, labour and contractor availability; (ii) future development costs and reserve life, which assume foreign exchange rates and accuracy of production estimates, and may be impacted by unexpected maintenance, the need to hire external resources and accelerated capital plans; (iii) reserves which are forward-looking statements by their nature involving the implied assessment that the reserves can be profitably produced, and may be impacted by energy prices, future drilling results and operating costs; and (iv) anticipated increases in production volumes and revenue. Risk factors that could prevent forward looking statements relating to Cuda and its operating activities from being realized include ongoing permitting requirements, the actual results of current exploration and development activities, operational risks, risks associated with drilling and completions, uncertainty of geological and technical data, market conditions, the availability and nature of alternative sources of energy, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of oil and natural gas. Although Cuda has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Oil and Gas Advisories

This news release contains metrics commonly used in the oil and natural gas industry, such as "future development costs", "net asset value" and "reserve life index". These oil and gas metrics have been prepared by management and do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included in this news release to provide readers with additional measures to evaluate Cuda's performance and to compare Cuda's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this news release, should not be unduly relied upon.

Future development costs are estimates of capital expenditures required in the future for the Company to convert proved developed non-producing reserves and probable reserves to proved developed producing reserves.

Reserve Life Index or RLI is calculated based on the amount for the relevant reserves category, divided by current production.

"BOEs" may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (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. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

This news release provides certain information relating to recovery results from gas-injection operations on properties in close proximity to the Company's properties, which is "analogous information" as defined by applicable securities laws. This analogous information is derived from publicly available information sources, which Cuda believes are independent in nature. Estimates by engineering and geotechnical practitioners may vary and the differences may be significant. Cuda believes that the provision of this analogous information is relevant to its activities and forecasting, given its interest in properties in the area; however, readers are cautioned that there is no certainty that any forecasts provided herein based on analogous information will be accurate.

Original Oil In Place ("OOIP") is used by Cuda in this news release as an equivalent to Discovered Petroleum Initially-In-Place ("DPIIP"). DPIIP, as defined in the Canadian Oil and Gas Evaluation Handbook (COGEH), is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of DPIIP includes production, reserves and contingent resources; the remainder is unrecoverable. The OOIP/DPIIP set forth in this news release has been provided for the sole purpose of highlighting the recovery factors used by Cuda's independent engineers in attributing reserves to Cuda effective as of May 1, 2020. It should not be assumed that any portion of the OOIP/DPIIP set forth in the news release is recoverable other than the portion which has been attributed reserves by Cuda's independent engineers. There is uncertainty that it will be commercially viable to produce any portion of the OOIP/DPIIP other than the portion that is attributed reserves.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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