WESTGATE ENERGY ANNOUNCES Q1 2026 FINANCIAL RESULTS

Westgate Energy Inc. released its Q1 2026 financial results on May 29, 2026, reporting a significant operational turnaround and profitability milestone. Key highlights include: - Production Growth: Production averaged 640 Boe/d in Q1 2026, representing a 147% year-over-year increase compared to 259 Boe/d in Q1 2025. Oil production specifically averaged 553 bbl/d. - Financial Performance: Total revenue reached $3.85 million with an operating income of $1.53 million, a substantial improvement over the $519,825 operating income recorded in Q1 2025. - Operational Efficiency: Operating netback improved to $26.55/boe from $22.30/boe in the prior year period, driven by higher volumes and realized prices averaging $75.12/bbl for crude oil. - Drilling Program: A four-well horizontal drilling program targeting the Colony Formation on the Beaverdam property has commenced. Well C3S is drilled to total depth (TD), with Well C4S expected to spud soon. All four wells are targeted for production by late July 2026. - Capital Allocation: The company recently completed a warrant exercise incentive program raising $2.1 million in gross proceeds (April 28, 2026) designated for the spring drilling program and working capital. A new tank treating facility was commissioned in March 2026 to lower sand handling costs. - Asset Acquisition: Acquired a nearby natural gas well adjacent to Beaverdam pad site; recompleted to offset propane fuel requirements, expected to reduce operating costs by approximately $7.00 per barrel.

The Q1 2026 results confirm the aggressive growth trajectory outlined in previous announcements (April 2026 Reserves and Year-End reports). While the production increase of 147% is robust, it aligns with the reserve expansion announced on April 16, 2026, which cited a 196% year-over-year increase in Total Proved reserves. The market had already reacted to this growth narrative prior to the earnings release, evidenced by the stock price rally from approximately $0.27 in late April to a high of $0.38 on May 26, 2026 (three days before the report).

The materiality lies primarily in the confirmation of operating profitability ($1.53 million operating income), which validates the capital deployment strategy. However, given that the financing ($2.1M) and drilling plans were already disclosed in April/May 2026, this news is largely a validation of execution rather than a new catalyst. The stock price action suggests expectations were priced in before the release. Consequently, while positive, it does not constitute a fundamental shift in valuation beyond what was anticipated by the market rally earlier in May.

Westgate Energy Inc. is an oil and gas exploration company focused on heavy oil development in Canada. Its flagship asset is the Beaverdam property, located in the Mannville Stack formation. The company has shifted focus from vertical to horizontal drilling strategies targeting the Colony Formation within this stack. Recent operational updates indicate a successful transition to higher-volume production wells, with the Beaverdam pad serving as the primary hub for drilling and facility upgrades (tank treating).