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Kelt Lowers Employee Salaries by 10%; Puts Montney Completions on Hold

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   |    Tuesday,April 14,2020

Kelt Exploration Ltd. has reported additional cost-saving measures for 2020 as well as an operational update.

Employee Salaries Cut 10%

Effective May 1, 2020, employee compensation has been reduced by 10% and director fees have been suspended.

This is in addition to its previously-announced budget decrease of 36%.

Montney Completions Put on Hold

During the first quarter of 2020, Kelt completed and brought on production the remaining six wells from its 24-well Montney cube development program at Inga. At Fireweed, the Company drilled a 5-well Montney pad and at Oak, Kelt drilled four Montney wells.

The completion operations for all these wells have been put on hold temporarily during the current low commodity price environment.

Midstream Update

Major infrastructure projects that commenced construction in 2019 are expected to be fully completed in April 2020.

At Inga, construction of the 40-kilometre, 16-inch pipeline that will have the capability to transport 300 MMCF per day of natural gas from the Company’s Inga 2-10 facility to the newly constructed AltaGas Townsend Deep-Cut Gas Plant has been completed and is currently being pressure tested. Kelt expects to commence gas deliveries to the Townsend Gas Plant in late April 2020.

At Fireweed, the Company has completed installation of its extensive infrastructure including a pipeline gathering system which connects the 5-well pad drilled during the first quarter of 2020. Kelt has begun to receive recoveries on the $15.0 million credit under the British Columbia Infrastructure Royalty Credit Program that is associated with this infrastructure project at Fireweed.

At Wembley, Kelt has completed the construction of a pipeline and related infrastructure that connects the Company’s La Glace 14-29 facility to the Tidewater Pipestone Sour Deep-Cut Gas Processing Plant. Kelt’s production from La Glace that had previously been shut-in due to restricted access to the Ovintiv Sexsmith Gas Plant can now be diverted to the Pipestone Plant.

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