Cancambria receives OK for Kiskunhalas operating plan

Executive Summary

• Cancambria Energy Corp. received approval from the Hungarian hydrocarbon authority for its technical operating plan for the Kiskunhalas Concession Area (KCA), outlining development activities for the next four years.
• The approved plan mandates detailed geological, geophysical, and engineering studies through the remainder of 2026, utilizing legacy and proprietary seismic data.
• The company is committed to a 3-D seismic acquisition program by year-end 2027 and a two-well drilling commitment by year-end 2029, with the potential to accelerate the program based on market conditions.

Key Details

• Regulatory Approval: The Hungarian authority approved the technical operating plan for the Kiskunhalas Concession Area (KCA), setting the schedule for development activities.
• Work Program Timeline:
  • Remainder of 2026: Conduct detailed geological, geophysical, and engineering studies using legacy 2-D and 3-D seismic data, calibrated against proprietary 3-D data acquired in 2023 over the adjacent BA-IX mining plot.
  • Integration: Studies will integrate production and well data from more than 300 legacy oil and gas wells in the region.
  • Year-End 2027: Undertake a 3-D seismic acquisition program.
  • Year-End 2029: Complete a two-well drilling commitment.
• Concession Details:
  • Location: Southern Hungary, within the Pannonian basin.
  • Size: Approximately 945 square kilometres (over 230,000 acres).
  • Interest: 100-per-cent working interest across all depths.
  • Resource Type: Both conventional and unconventional resource potential, including tight gas accumulation.
  • License Transition: Upon successful completion of the prescribed work commitment, the KCA automatically transitions to a production licence with a 20-year term.
• Strategic Context:
  • The project is near established gas infrastructure servicing major European markets.
  • Management cites rising European natural gas prices and supply-side concerns as drivers for the project's value.
  • The company reserves the right to accelerate the work program based on investment levels and commodity pricing.
• Resource Estimates: The company published estimates of contingent resources in accordance with National Instrument 51-101, effective September 30, 2025.

Notable Quotes

• "Securing approval of our technical operating plan is an important step in unlocking the strategic value of the KCA... Given the supply-side concerns and associated commodity prices for natural gas in Europe, we believe this project represents a meaningful opportunity within the onshore European energy landscape." — Dr. Paul Clarke, President and CEO