Lotus Creek Exploration Inc. Announces 2026 Budget and Guidance

Executive Summary

• Lotus Creek approved a $42 million 2026 budget aimed at delivering 75% annual production growth, targeting 3,400‑3,800 boe/d for the year and 3,800‑4,200 boe/d in Q4.
• The budget allocates $33.6 M (80%) to drill six gross light‑oil Belly River wells and expand the 02‑29 oil battery; $8.4 M (20%) funds land, seismic, field projects, recompletions and liability reductions.
• Management emphasizes disciplined, per‑share growth, cash‑flow resilience in a low‑price environment, and expanded hedge protection.

Key Details

• Total 2026 Capital: $42.0 million.
• Drilling Allocation: $33.6 M (80%) for six gross (six net) light‑oil Belly River wells at Wilson Creek; infrastructure expansion of the 5,000 boe/d 02‑29 oil battery and gathering system.
• Other Capital Allocation: $8.4 M (20%) for land acquisition, 3D seismic, field capital projects, recompletions, corporate costs, and reduction of abandonment/reclamation liabilities.
• Production Guidance – Full Year 2026: 3,400‑3,800 boe/d average annual production.
• Production Guidance – Q4 2026: 3,800‑4,200 boe/d average.
• Commodity Mix: 77% crude oil & NGLs, 23% natural gas.
• Capital & Abandonment Expenditures: $42 million (entire budget).
• Strategic Priorities:
• Production Growth – focus on proven Wilson Creek assets to boost output YoY and Q4‑over‑Q4.
• Cash Flow Management – phased spend, expanded hedge portfolio for downside price protection.
• Operational Efficiency – maximize existing pads/infrastructure; early‑January spud secured with top‑tier rig and services.
• Quote (CEO): “At a US$60 WTI per barrel price, the 2026 Budget delivers sustained organic growth while maintaining a strong balance sheet.” – Kevin Johnson, President & CEO.

Notable Quotes

“As we execute our growth initiatives, we remain focused on balancing expansion with profitability, ensuring our shareholders benefit from both scale and financial strength.” – Kevin Johnson, President & CEO.