Lotus Creek sets 2026 budget at $42-million

Executive Summary

• Lotus Creek Exploration Inc. has announced its approved 2026 fiscal budget of $42.0 million, targeting a 75% annual production growth rate.
• The company forecasts an average production rate of 4,000 barrels of oil equivalent per day (boe/d) for the fourth quarter of 2026, with production expected to peak in the first quarter of 2027.
• The budget focuses heavily on drilling activities at the Wilson Creek asset, specifically targeting 6.0 gross light oil Belly River wells and expanding infrastructure at the 02-29 oil battery.

Key Details

• 2026 Budget Allocation ($42.0 million total):
  • $33.6 million (80%): Allocated to drilling 6.0 gross (6.0 net) light oil Belly River wells in Wilson Creek and expanding infrastructure at the 5,000 boe/d 02-29 oil battery and gathering system.
  • $8.4 million (20%): Invested in land, seismic, field capital projects, recompletions, corporate costs, and reduction of liabilities associated with abandonment and reclamation.
• Production Guidance:
  • Targeting 75% annual production growth.
  • Forecast average production for Q4 2026: 4,000 boe/d.
  • Production peak expected in Q1 2027.
• Strategic Priorities:
  • Production Growth: Concentrated development in proven areas with strong technical and economic performance, extending momentum from 2025.
  • Cash Flow Management: Phased development schedule to distribute capital; expansion of the existing hedge portfolio for downside price protection.
  • Operational Efficiency: Maximizing use of existing pads and infrastructure; early January spud scheduled to secure top-tier drilling rig and services.
• Recent Operational Performance (October 2025):
  • Production reached 2,923 boe/d (up 119% month-over-month).
  • Composition: 2,370 boe/d crude oil and NGLs; 3,316,000 cubic feet/d natural gas.
  • Monthly adjusted funds flow grew to $2.7 million (up 350% month-over-month), representing a $32 million annualized run rate.
  • Inaugural two-well Belly River program achieved over 1,700 boe/d combined and drill times averaging less than nine days.
  • Two additional Belly River wells brought online on November 18, 2025.
• Financial Outlook:
  • CEO Kevin Johnson stated that at a $60 (U.S.) WTI per barrel price, the budget delivers sustained organic growth while maintaining a strong balance sheet.

Notable Quotes

• "As we execute our growth initiatives, we remain focused on balancing expansion with profitability, ensuring our shareholders benefit from both scale and financial strength. At a $60 (U.S.) WTI per barrel price, the 2026 budget delivers sustained organic growth while maintaining a strong balance sheet," said Kevin Johnson, president and chief executive officer.