Mr. Leonard Van Betuw reports

AVILA ENERGY CORPORATION IS PLEASED TO ANNOUNCE THE FILING OF ITS AUDITED FINANCIALS AND MD&A FOR THE YEAR ENDED DECEMBER 31, 2022, AND PROVIDES A CORPORATE UPDATE

Avila Energy Corp. has filed its audited financials and management's discussion and analysis for the year ended Dec. 31, 2022, and has provided a corporate update.

The company is pleased to report for the year ended Dec. 31, 2022, year-over-year results as summarized herein.

The company in 2022 continued focus on building the foundation for its future growth as reported in its audit financial statements for the year ended Dec. 31, 2022, and summarized in its management's discussion and analysis filed on SEDAR and available on the company's website.

Despite having to make a difficult decision to abandon and write off the revenues and costs associate with the acquisition in northeast British Columbia by the company, Avila has owned and operated business units in Alberta that continued to provide a solid foundation and generated net operating income of $20.69 per barrel of oil equivalent for the 12 months ended Dec. 31, 2022.

The company's weighted-average common shares outstanding for the 12 months was 84,722,990, and based on this number of shares outstanding, the company reported the following results.

Corporate earnings

The company for the 12 months ended Dec. 31, 2022, recorded net operating income of $1,381,586 or two cents per share, and after the recording of general administration, depreciation and depletion, and after-income adjustments, Avila in 2022 recorded a net profit of one cent per share.

Corporate focus

The company's continuing long-term focus on sustainable growth in combination with sustainable blend production of oil, natural gas and liquids upstream in combination with the optimization of its 100-per-cent-owned facilities (seven) in combination with its over 300 kilometres of owned operated pipelines is the foundation that has allowed the company to increase its net operating income from $17.13 per boe in 2021 to $20.69 per boe in 2022 after the closing of two acquisitions in the fourth quarter of 2022. Avila's net margins in 2022 on sales were 40.6 per cent for the year.

Company evaluation and asset

On Dec. 31, 2022, the company's weighted-average common shares outstanding was 84,722,990, with a book value of 63 cents per share and an enterprise value (net of decommissioning) of 77 cents per share.

Avila's reserves on a proven plus probable basis (2P) for the company are 5,256,100 boe valued at $30,734,000 future cash flows based on a net present value discounted at 10 per cent before income taxes. The $30,734,000 is an estimate of future cash flows, does not necessarily represent fair market value and is supported by a sustainable capital program of $10,432,000 for proven reserves and $17,517,000 for proven plus probable reserves.

"The efforts to date continue to advance (as anticipated) with the closing of the current acquisitions and the further consolidation of its businesses as per the [National Instrument] 51-101-compliant evaluation completed by the company's [qualified reserves evaluator], Deloitte LLP, on April 28, 2022," said president and chief executive officer Leonard B. Van Betuw.

"Furthermore, we continue to remain focused on the same goals that we have reported in 2022: the development of a sustainable asset base and land positions of dominance so that we can act on changing commodity prices and future unbooked potential that the company has identified to date.

"Our shareholders should continue to look forward to participating in the realization of our past efforts and the fruits of our employees' and contractors' future efforts going forward into 2023 through to 2027," said Mr. Van Betuw.

Corporate update

Avila continues to advance its plans as announced on April 3, 2023, to complete a business combination with Insight Acquisition Corp. The company is also pleased to report that upon completion of its application, Insight Acquisition announced on April 27, 2023, that it will transfer the listing of its Class A common stock and units from the New York Stock Exchange to the Nasdaq Stock Market and its warrants from the Over-the-Counter Market to the Nasdaq Stock Market. Insight Acquisition will commence trading as a Nasdaq-listed company upon the market open on Tuesday, May 2, 2023. Insight Acquisition's Class A common stock will continue trading under the ticker symbol INAQ on the Nasdaq Global Market.

About Avila Energy Corp.

The company is an emerging Canadian Securities Exchange-listed corporation trading under the symbol VIK, and in combination with an expanding portfolio of 100-per-cent-owned-and-operated oil and natural gas production, pipelines, and facilities, is a licensed producer, explorer and developer of energy in Canada. The company, through the implementation of a closed system of carbon capture and sequestration, and an established path under way toward the material reduction of Tier 1, Tier 2 and Tier 3 emissions, continues to work toward becoming a vertically integrated carbon-neutral energy producer. The company continues to grow and achieve its results by focusing on the application of a combination of proven geological, geophysical, engineering and production techniques.

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