Toscana Energy Income Corporation ("TEI" or the "Corporation") (TSX: TEI) announces the Corporation’s 2019 year-end reserves.

2019 Reserves Highlights

• Proved Developed Producing reserves represent 60% of Proved Reserves.
• Proved reserves represent 75% of Proved plus Probable Reserves.

Corporate Reserves:

The reserves data set forth below is based upon independent reserve assessments and evaluations prepared by Sproule Associates Limited (“Sproule”) dated February 28, 2020 with an effective date of December 31, 2019 (the “Reserve Report”).

The following tables summarize the Corporation’s crude oil, natural gas liquids and natural gas reserves and the net present values before income taxes of future net revenue for the Corporation’s reserves using forecast prices and costs based on the Reserve Report. The Reserve Report has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") and the reserve definitions contained in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101”).

All evaluations of future net revenues are stated prior to any provisions for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein for the fiscal year ended 2019.

Reserves Summary

Proved reserves comprised 75% of the Corporation’s total proved plus probable reserves at December 31, 2019. The Corporation had 356 Mboe of proved undeveloped reserves at December 31, 2019, representing 7.7% of total proved and probable reserves and 10.3% of total proved reserves.

The Future Development Capital contained in the Reserve Report (undiscounted) is $12.8 million for the proved and probable reserves and $9.9 million for total proved reserves.

The following tables provide summary reserve information from the Reserve Report which was prepared using Sproule’s forecasts at December 31, 2019.

Notes:

1. “Net” reserves means the Corporation’s working interest (operated and non-operated) share after deduction of royalty obligations, and including the Corporation’s royalty interest in reserves.
2. Rounding may affect totals within tables.
3. Due to effects of rounding, certain totals may not be consistent from one table to the next.

Reserves Values

For Toscana’s 2019 year-end reserves report all abandonment, decommissioning and reclamation costs (“ADR“), as well as inactive well operating costs (“IWC“) have been included in order to provide greater transparency and accuracy of current values and future cash flows. This includes costs for both active and inactive wells, including ADR costs for producing wells, suspended wells, abandoned wells, gathering systems, facilities, and surface land development for all the Company’s assets.  This change was made based on new guidelines added to the COGE Handbook in 2019, which recommends including ADR and IWC as best practices.

The estimated net present values before income taxes of future net revenues associated with the Corporation’s reserves effective December 31, 2019 and based on the published future price forecasts are summarized in the following table: