Mr. Leonard Van Betuw reports

AVILA ENERGY REFILES ITS FINANCIAL STATEMENTS AND MD&A

Avila Energy Corp. has refiled its audited financial statements for the year ended Dec. 31, 2022, and its unaudited financial statements for the three months ended March 31, 2023, as well as their corresponding management's discussion and analysis (MD&A).

The refiling intends to amend disclosure regarding the credit risk fee that was used to calculate the asset retirement obligation (ARO) in the audited annual financial statements which has resulted in the ARO being reduced by $2,246,960 for the year ended Dec. 31, 2022. Its corresponding MD&A will be refiled to comply with the changes made.

The interim financial statements for the three months ended March 31, 2023, will include a notice to confirm that auditors had not performed a review of the interim financial statements.

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's long-term vision is to achieve, through the implementation of a closed system of carbon capture and sequestration, an established path toward the material reduction of Tier 1, Tier 2 and Tier 3 emissions and continues to work toward becoming a vertically integrated, carbon-neutral energy producer. The company's goals are to be achieved by focusing on the application of proven geological, geophysical, engineering and production techniques in combination and the direct sale of energy to both residential and commercial consumers.

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