Lotus Creek Exploration Inc. Announces Second Quarter 2025 Operating Results and Appointment of Chief Financial Officer

Executive Summary

• Lotus Creek Exploration Inc. reported second quarter 2025 operating results, highlighting production of 1,627 boe/d, an increase in Adjusted Funds from Operations (FFO) to $2.0 million, and the initiation of a new risk management program.
• The Company announced the appointment of Mitchell Harris as Chief Financial Officer and Vice-President, Finance, effective immediately.
• Operational updates include the commencement of the Belly River drilling program in July and expectations for new production from Tucker Lake and Belly River wells in September 2025, with no changes to the 2025 guidance.

Key Details

• Production Metrics (Q2 2025):
  • Total Production: 1,627 boe/d (flat vs. Q1 2025).
  • Light Oil: 970 bbl/d.
  • NGLs: 243 bbl/d.
  • Natural Gas: 2,481 mcf/d.
• Financial Performance (Q2 2025):
  • Adjusted Funds from Operations (FFO): $2.0 million (up from $1.6 million in Q1 2025).
  • Net Loss: $115,000 (compared to net loss of $489,000 in Q1 2025).
  • Cash Flow from Operating Activities: $1,069,000 (compared to $(443,000) in Q1 2025).
  • Working Capital Surplus: $10.5 million at end of Q2.
  • Liquidity: Access to $35.0 million credit facility.
• Capital Expenditures:
  • Total Capital Invested in Q2: $3.4 million.
  • Includes initial costs for a new oil battery in Wilson Creek with 5,000 boe/d capacity.
  • YTD Capital and Abandonment Expenditures: $13.1 million (against 2025 guidance of $43.0 million).
• Operational Updates & Drilling:
  • Belly River Program: Commenced in July 2025; planned to drill and complete 2 gross (2.0 net) light oil wells expected onstream late Q3 2025. Plans to drill an additional 2 gross (2.0 net) wells later in the year.
  • Tucker Lake: Awaiting Alberta Energy Regulator approval for facility license; anticipates approval and on-stream production in Q3 2025.
  • Upcoming Production: Expects production additions in September 2025 from 3 gross (3.0 net) Tucker Lake heavy oil wells and 2 gross (2.0 net) Belly River light oil wells.
• Guidance & Risk Management:
  • 2025 Annual Production Guidance: 2,000 - 2,400 boe/d.
  • Q4 Average Production Guidance: 3,000 - 3,400 boe/d.
  • Operating and Transportation Costs Guidance: $19.50 - $20.50/boe.
  • G&A Expense Guidance: $5.00 - $5.50/boe.
  • Initiated risk management program to hedge commodity price and foreign currency exchange risks via short-term contracts.
• Executive Appointment:
  • Mitchell Harris appointed as CFO and Vice-President, Finance.
  • Previously served as Interim CFO since March 3, 2025, and Controller since inception.
  • Chartered Professional Accountant with ~15 years of industry experience.

Notable Quotes

• "I am pleased to announce Mitchell as CFO and Vice-President, Finance, of Lotus Creek. Mitchell's knowledge, experience and tenure with the Lotus Creek assets has led to an efficient and stable transition for the Company. I look forward to continuing to work with Mitchell and our leadership team as we execute our strategy as a profitable, high torque, organic growth oil and gas company." — Kevin Johnson, President and Chief Executive Officer