Coelacanth Energy Inc. Announces Operations Update, Revised Reserve Report and Initial Resource Report

Executive Summary

• Coelacanth Energy Inc. provided an operations update, an independent reserve report (GLJ), and a resource report effective June 30, 2025.
• The company commissioned a new battery facility in early June and began placing nine previously drilled Montney wells from the 5-19 pad on production, with initial results exceeding expectations despite moderated pace due to low natural gas prices.
• The GLJ Reserve Report reclassified 8.7 million boe from non-producing to producing status, removed $37.5 million in future development capital, and increased the overall reserve value by $40.4 million, with producing status reserves increasing by $107.4 million.

Key Details

• Operations Update:
  • New battery facility commissioned in early June.
  • Systematic placement of 9 previously drilled Montney wells from the 5-19 pad on production.
  • Pace moderated due to low natural gas prices at the Station 2 hub, but results exceeded expectations.
• Well Performance (Lower Montney):
  • D5-19: Lateral length 3,180m. Initial 30-day sales production: 1,037 boe/d (57% liquids). Breakdown: 546 bbl/d light oil, 2,659 mmcf/d natural gas, 48 bbl/d NGLs.
  • E5-19: Lateral length 2,775m. Initial 30-day sales production: 1,346 boe/d (67% liquids). Breakdown: 854 bbl/d light oil, 2,660 mmcf/d natural gas, 49 bbl/d NGLs.
  • F5-19: Lateral length 2,800m. Initial 22-day sales production: 1,323 boe/d (61% liquids). Breakdown: 745 bbl/d light oil, 3,121 mmcf/d natural gas, 58 bbl/d NGLs.
  • All three wells exceeded initial production on a proved plus probable (2P) basis as booked by GLJ Ltd.
• GLJ Reserve Report (Effective June 30, 2025):
  • Mechanical update to the 2024 year-end report.
  • Reclassification of 8.7 million boe on the 5-19 pad from non-producing (Proved/Probable Non-Producing) to producing (Proved/Probable Producing).
  • Rescheduled timing of wells placed on production.
  • Removal of $37.5 million in future development capital (facility and other capital) prior to July 1, 2025.
  • Updated future pricing based on GLJ (2025-07) forecast.
  • Value Impact: Overall reserve value increased by $40.4 million; producing status reserves increased by $107.4 million (estimated future net revenues before taxes discounted at 10%).
• Reserves Summary (Working Interest):
  • Total Proved: 16,878 Mboe (3,273 Mbbl Tight Oil, 73,465 Mmcf Shale Natural Gas, 1,361 Mbbl NGLs).
    • Producing: 10,374 Mboe.
    • Undeveloped: 6,504 Mboe.
  • Total Probable: 10,424 Mboe.
  • Total Proved & Probable: 27,302 Mboe.
• Reserves Values (Estimated Future Net Revenues Before Taxes, Discounted at 10%):
  • Total Proved: $143,321,000.
  • Total Proved & Probable: $227,235,000.
• GLJ Resource Report (Effective June 30, 2025):
  • Covers Two Rivers Montney lands (~150 net sections) across 4 zones (Upper, Middle, Lower, Basal).
  • Discovered PIIP: 6.9 Billion Bbls Oil, 5.9 Trillion Cubic Feet Gas.
  • Undiscovered PIIP: 8.3 Billion Bbls Oil, 7.1 Trillion Cubic Feet Gas.
  • Zone Breakdown (Discovered Oil PIIP): Upper (2.5 Bbls), Lower (3.0 Bbls), Basal (1.3 Bbls), Middle (0 Bbls - minimal work).
  • Zone Breakdown (Undiscovered Oil PIIP): Middle (5.0 Bbls), Basal (2.9 Bbls), Upper (0.2 Bbls), Lower (0.2 Bbls).
  • Middle Montney identified as undiscovered; additional work planned to determine commerciality.
• Price Forecast (GLJ 2025-07):
  • WTI Oil (2025 Q3-Q4): $65.00 US/Bbl; (2034): $86.05 US/Bbl.
  • AECO Natural Gas (2025 Q3-Q4): $2.20 CDN/Mmbtu; (2034): $4.33 CDN/Mmbtu.
  • Foreign Exchange (2025 Q3-Q4): 0.7300 CDN/US$; (2034): 0.7500 CDN/US$.

Notable Quotes

• "Although Coelacanth has chosen to moderate the pace of wells brought on-stream because of low natural gas prices at the Station 2 hub, the results to date have exceeded expectations."
• "Coelacanth believes the July 1, 2025 updated GLJ Report better reflects the current status of the Company given the changes as noted above."
• "Overall, Coelacanth is very pleased with its well results to date and is looking forward to establishing the ultimate recoverable reserves while increasing booked reserves and on its large Two Rivers Montney Resource for the benefit of its stakeholders."