Cancambria identifies new shallow trend in Hungary

Executive Summary

• Cancambria Energy Corp. has identified a new shallow, high-impact exploration trend covering approximately 350 square kilometers (86,500 acres) within the northern portion of its Kiskunhalas Concession Area (KCA) in southern Hungary.
• The company is retaining MS Energy Solutions Ltd. to conduct an integrated desktop study, including the licensing and interpretation of ~500 km of legacy 2-D seismic data, to evaluate conventional and unconventional hydrocarbon potential in the region.
• Based on these studies, Cancambria intends to undertake a new proprietary 3-D seismic acquisition program to define prospect geometry and risk, with the goal of drilling and testing shallower targets in the future.

Key Details

• Exploration Trend: A 350 sq km (86,500 acres) shallow play fairway identified in the northern KCA, featuring potential for both conventional and unconventional hydrocarbon accumulations.
• Portfolio Strategy: The company now holds a dual-strategy portfolio: lower-cost, near-term oil-weighted production potential from the new shallow trend, and a contingent mid-term, scalable tight gas development opportunity.
• Technical Partner: MS Energy Solutions Ltd. retained to complete a regional desktop study of legacy oil and gas fields across the KCA.
• Seismic Data: The study involves licensing and interpreting approximately 500 km of legacy 2-D seismic data.
• Historical Context: The KCA area has produced over 160 million BOE from more than 20 historical oil and gas fields, demonstrating regional productivity.
• Target Intervals: Hydrocarbon potential identified in stratigraphic intervals at average depths of 1,800 meters, including Pannonian, Badenian, Miocene, Cretaceous, Triassic, and Precambrian units.
• Play Style: Interpreted as a "string-of-pearls" style play with potential satellite accumulations along structural trends associated with the Soltvadkert and Alpar troughs.
• Regional Activity: Recent 3-D seismic acquisition by MOL Group north of the KCA and a Sept. 10, 2025, announcement by MOL reporting a significant oil discovery with initial rates of 1,000 barrels of oil per day highlight continued industry investment in the region.
• Future Plans: Intent to undertake a new proprietary 3-D seismic acquisition program to define size, geometry, and risk profile of prospects.
• Timeline and Capital: No capital commitments or deadlines in 2026 per the technical operating plan announced March 5, 2026; however, the program may be accelerated based on commodity price changes.
• Reporting: Prospective resource disclosure will be provided via a National Instrument 51-101 report once new 3-D seismic volumes are available and opportunities are defined.

Notable Quotes

• "Hydrocarbon discoveries are commonly made by applying new exploration technologies within proven basins, and that is exactly the opportunity we see emerging at Kiskunhalas. Controlling a contiguous land position of this scale, within a basin that has produced more than 160 million BOE, gives us a rare platform to pursue potential new high-impact discoveries." — Dr. Paul Clarke, CEO and President
• "While we remain focused on the deep tight gas resource development, we are increasingly encouraged by the shallow fairway now being defined across the northern KCA. Plays of this type are seeing a renaissance of activity and investment across the broader region, and adjacent to our acreage position, fuelled by strong commodity prices." — Dr. Paul Clarke, CEO and President
• "With new 3-D seismic planned, we believe the new exploration program has the potential to unlock significant value." — Dr. Paul Clarke, CEO and President