Pipestone Energy Corp. announces unplanned outage at the Keyera Wapiti Gas Plant

CALGARY, Alberta – (PIPE – TSX-V) Pipestone Energy Corp. (“Pipestone Energy” or the “Company”) was notified by Keyera Corp. (“Keyera”) on August 17, 2020 of an issue relating to the Waste Heat Recovery System within the Keyera Wapiti Gas Plant (“Keyera Plant”). This failure has resulted in an unplanned outage. After performing an inspection of the affected equipment, Keyera expects the repairs to be completed and the Keyera Plant to resume operations by the end of next week. During this outage, both Pipestone Energy and Keyera are performing maintenance and installation activities that would have resulted in planned downtime during late Q3 and early Q4 2020. Based on the net expected outage duration, the Company is reaffirming its 2020 annual production and cash flow guidance released on August 5, 2020 of 16,000 to 17,000 boe/d and $40 million at the midpoint, respectively. If the Company receives information that materially changes the expected timeline to repair the Keyera Plant, Pipestone Energy will provide a further update to the market.

Pipestone Energy Corp.

Pipestone Energy Corp. is an oil and gas exploration and production company with its head office located in Calgary, Alberta. The company is focused on developing its pure-play condensate-rich Montney asset in the Pipestone area near Grande Prairie, Alberta. Pipestone Energy is committed to building long term value for our shareholders and values the partnerships that it is developing within its operating community. Pipestone Energy shares trade under the symbol PIPE on the TSX Venture Exchange. For more information, visit www.pipestonecorp.com.