(TSX: AAV)

CALGARY, AB, April 29, 2021 /CNW/ – Advantage Oil & Gas Ltd. (“Advantage” or the “Corporation”) is pleased to report first quarter 2021 results including record production, significant free cash flow(a) and a material reduction in net debt(a).

Results from Advantage’s winter drilling program have continued to exceed expectations both in costs and well performance while gas prices were elevated during the quarter, strengthening our financial outlook and guidance for 2021. Drilling in the first quarter of 2021 was entirely gas-focused at Glacier where wells continued to achieve a step change in productivity with cost reductions of over 10%. All wells from the program are utilizing existing capacity at Advantage’s owned and operated Glacier Gas Plant, where incremental operating expenses of new production are minimal.

Operating and Financial Highlights for the Quarter include:

Cash provided by operating activities was $51.6 millionNet capital expenditures(a) were $37.2 millionAdjusted funds flow (“AFF”)(a) was $54.0 million ($0.29 per share), exceeding capital by 45% Free cash flow(a) was $16.8 million representing 31% of AFF(a)Net debt(a) was reduced to $214.5 million, a reduction of $150.4 million from the first quarter of 2020 and $36.9 million from the fourth quarter of 2020 Reduced net debt to AFF(a) ratio to 1.7x Record total production of 49,819 boe/d, up 7% over first quarter 2020 Record gas production of 271 mmcf/d, up 6% from first quarter 2020 Liquids production of 4,609 bbls/d (1,395 bbls/d crude oil, 721 bbls/d condensate, 2,493 bbls/d NGLs), up 24% from first quarter 2020 Maintained low cash costs including operating costs of $2.45/boe Increased operating netbacks(a) to $14.14/boe, up 59% from first quarter 2020

a.

Non-GAAP Measure which may not be comparable to similar non-GAAP measures used by other entities. Please see Advisory for reconciliations to the nearest measure calculated in accordance with GAAP.

Operational Update

Glacier well outperformance and available Glacier Gas Plant capacity provides flexibility to continue capitalizing on higher natural gas prices Five additional Glacier wells are scheduled to be completed and tied-in during the third quarter of 2021 Fourteen additional wells are scheduled to be drilled in the second half of 2021 with the primary focus remaining

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