Coelacanth expands credit line, talks Montney drilling

Executive Summary

• Coelacanth Energy Inc. has secured an agreement to increase its bank credit facility from $52 million to $80 million, with closing expected in mid-November.
• The company provided a detailed operations update regarding its Two Rivers East and Two Rivers West assets, including current production rates, upcoming well completions, and production forecasts through early 2026.
• Coelacanth has entered into hedging agreements in conjunction with its drilling program and anticipated new production.

Key Details

• Credit Facility Increase:
  • Agreement signed to increase bank credit facility from $52 million to $80 million.
  • Closing expected in mid-November.
  • Net bank debt relative to the credit facility estimated at $43 million as of September 30, 2025.
  • Additional liquidity to be used, in part, to finance the fall drilling program.
• Operations Update – Two Rivers East:
  • Currently drilling three additional wells on the 5-19 pad.
  • Completions anticipated for late November.
  • On-stream date for new wells expected in early February 2026.
  • Last three wells on the pad tested a combined 4,872 barrels of oil equivalent per day (boe/d), with 60% light oil; similar results are expected.
• Operations Update – Two Rivers West & Production Forecasts:
  • Currently producing four of nine wells on the 5-19 pad plus legacy production at Two Rivers West.
  • Current production is approximately 4,400 boe/d (40% light oil).
  • Five remaining wells scheduled to come on production sequentially from mid-November until year-end.
  • Test production on the five remaining wells was approximately 6,400 boe/d combined.
  • Net of flush production and declines, estimated production is approximately 8,400 boe/d (40% light oil) at year-end.
  • Production expected to exceed 10,000 boe/d in February 2026 when new wells are on production.
• Strategic Context:
  • Business plan includes delineating and developing a large Montney resource.
  • Includes four potential Montney benches on a 150-section contiguous block of land at Two Rivers in northeast British Columbia.
• Hedging:
  • Hedges placed in conjunction with the drilling program and anticipated new wells (specifics referenced in an attached table not provided in text).

Notable Quotes

• "Coelacanth is pleased with the results to date and the progression of the business plan."