Acquisition of Common Shares and Warrants of Return Energy Inc. by Richard F. McHardy

CALGARY, Alberta, Dec. 20, 2019 (GLOBE NEWSWIRE) -- Pursuant to the early warning requirements of applicable Canadian securities laws, Richard F. McHardy ("Acquiror") reports that, on December 19, 2019, the Acquiror, together with joint actors, acquired an aggregate of 360,000,000 common shares ("Common Shares") in the capital of Return Energy Inc. ("Return" or the "Company") and 360,000,000 Common Share purchase warrants ("Warrants") for a total purchase price of $3.6 million under a non-brokered private placement of 879,650,000 Common Shares and 1,620,350,000 units ("Units") of the Company at a price of CDN$0.01 per Common Share and Unit, as applicable (the "Private Placement"). Each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of CDN$0.01 (the "Exercise Price") per Common Share at any time prior to December 19, 2024. The Warrants will vest and become exercisable as to one-third upon the 10-day weighted average trading price of the Common Shares (the "Market Price") equaling or exceeding 100% of the Exercise Price, an additional one-third upon the Market Price equaling or exceeding 150% of the Exercise Price and a final one-third upon the Market Price equaling or exceeding 200% of the Exercise Price.

Concurrent with the Private Placement, the Company appointed a new management team (the "New Management Team") and new board of directors (the "New Board"), which is led by Richard F. McHardy as Executive Chairman and Fotis Kalantzis as President and Chief Executive Officer and includes Geri Greenall as Chief Financial Officer, Thanos Natras as Vice President, Exploration, Craig Martin as Vice President, Operations, Mark Hodgson as Vice President, Corporate Development, Brendan Paton as Manager, Engineering and Ashley Hohm as Controller. The New Board is comprised of Richard F. McHardy, Fotis Kalantzis, Don Archibald, Reginald Greenslade, Kevin Overstrom and Tamara MacDonald. Sanjib (Sony) Gill, a partner in the Calgary office of the national law firm Stikeman Elliott LLP, has been appointed as Corporate Secretary.

The New Management Team expects to focus on predominantly light oil opportunities in Western Canada, growing through a targeted acquisition and consolidation strategy complemented by development and exploration drilling. The recapitalized corporate structure will allow for the exploitation of more than 30 high-quality drilling locations targeting Upper Charlie Lake dolomitic siltstones in Rycroft, and the further expansion of Return's opportunity suite through internally generated prospects and strategic acquisitions. The New Management Team is actively evaluating numerous acquisition opportunities.

Following the transactions, the Company's name will be changed to "Spartan Delta Corp.".

Prior to the Private Placement, Acquiror did not hold any securities of Return.

Immediately following the completion of the Private Placement, Acquiror beneficially owned or controlled, directly or indirectly, 360,000,000 Common Shares and 360,000,000 Warrants pursuant to the Private Placement, representing 13.79% (on a non-diluted basis) and 17.02% (on a fully diluted basis) of the voting securities of the Company.

Acquiror acquired the Common Shares and Warrants for investment purposes and may, in the future, increase or decrease its ownership of securities of Return, directly or indirectly, from time to time depending upon, among other things, the business and prospects of Return and future market conditions.

For further details regarding the acquisition of the Common Shares and Warrants described above, see the Early Warning Report dated December 20, 2019 available on Return's SEDAR profile.

FOR FURTHER INFORMATION OR TO OBTAIN A COPY OF THE EARLY WARNING REPORT FILED IN CONJUNCTION WITH THIS NEWS RELEASE, PLEASE CONTACT:

Richard F. McHardy
202, 1201 ? 5th Street S.W.
Calgary, Alberta  T2R 0Y6

Return's head office is located at:
Return Energy Inc.
202, 1201 ? 5th Street S.W.
Calgary, Alberta  T2R 0Y6

[email protected]