Mr. Leonard Van Betuw reports

AVILA ENERGY CORPORATION IS PLEASED TO ANNOUNCE THE FILING OF ITS FINANCIAL REPORT FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023

Avila Energy Corp. has filed its financial report for the three and six months ended June 30, 2023.

Avila Energy's average production increased 173 percent to 396 boe/day for the three months ended June 30, 2023, from 145 boe/day for the three months ended June 30, 2022.

Operating netback is used by the company to measure the contribution to the company's earnings of oil and natural gas production after consideration of the direct costs of production. Operating netback is reconciled to net earnings by subtracting general and administrative costs, interest, taxes, depletion, and depreciation.

Avila's operating netback decreased 97 percent to $ 0.82 per boe for the three months ended June 30, 2023, from $30.89 for the three months ended June 30, 2022. The decrease is mainly due to lower petroleum and natural gas sales prices in the three months ended June 30, 2023.

Avila's operating netback decreased 79 percent to $4.60 per boe for the six months ended June 30, 2023, from $22.37 for the six months ended June 30, 2022. The decrease is mainly due to lower petroleum and natural gas sales prices in the six months ended 2023.

Delayed turn-arounds and work-overs also contributed to the company realizing lower production rates than what the company is capable of producing in the 2nd Quarter. Upon the closing of the financing as announced on August 2, 2023, the company accelerated its capital programs and is working towards exiting Sept. 30, 2023, producing 950 boe/d and up to 1,040 boe/d, of which 8% to 10% is expected to be Oil and Condensate and the balance being 92% to 90% natural gas. These actions are expected to increase revenues, reduce the costs of production per boe, resulting in improved netbacks.

"During the second quarter, the company was focused on the stabilization of its upstream production and cash-flow, while it completed negotiations that were concluded in the 2nd quarter with MTT. During this time the company successfully settled of all outstanding matters associated with the patented combined-cycle micro-turbine, the "EnerTwin" developed by Micro Turbine Technologies BV. ("MTT")." said Leonard B. Van Betuw. President & CEO. "The result being the confirmation of the issuance of our 15% equity investment in MTT and by way of the signing of a settlement agreement as announced on June 26th the company, Avila is now proceeding with renewed confidence its plans to become a sustainable Carbon Neutral Energy Producer through the development of its Vertically Integrated Energy Business."

Avila Energy Corporation's Financial Statements and Manage Discussion & Analysis are filed and can be found on SEDAR.COM or the company's website www.avilaenergy.com for the three (3) and six (6) months ended June 30, 2023, and 2022.

About Avila Energy Corporation

The company is an emerging CSE listed corporation trading under the symbol ('VIK'), and in combination with an expanding portfolio of 100% 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 towards the material reduction of Tier 1, Tier 2 and Tier 3 emissions and continues to work towards 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 with the delivery of Direct-to Consumer energy sales to both residential and commercial consumers.

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