New Stratus Energy Announces Results for the Three and Six Months Ended June 30, 2025 & Corporate Updates

Executive Summary

• New Stratus Energy Inc. reported consolidated financial and operating results for the three and six months ended June 30, 2025, including a net loss from continuing operations of $552,605 ($0.01 per share) for the quarter, driven by a significant Ecuador tax recovery.
• The company provided updates on three key international assets: resumed negotiations for the Sacha Block in Ecuador following a government change; signed an MOU with Vultur Oils for Brazilian blocks with estimated reserves; and submitted a formal application to operate Block 192 in Peru.
• A non-brokered private placement of 25,090,909 common shares at CAD$0.55 per share was announced, targeting gross proceeds of up to CAD$13.8 million, expected to close in September 2025.

Key Details

• Financial Highlights (Three Months Ended June 30, 2025):
  • Adjusted Working Capital: $(432,275)
  • Adjusted EBITDA: $(2,870,115)
  • Ecuador Tax Recovery (Correction Factor): $6,810,941
  • Net Loss from Continuing Operations: $(552,605) ($0.01 per share)
  • Average Daily OPS Production: 1,060 boepd
  • OPS Equity Pick Up (49% Net to NSE): $280,019
• Financial Highlights (Six Months Ended June 30, 2025):
  • OPS Net Income: US$1,127,224
  • NSE Share of OPS Net Income (49%): US$778,468
• Ecuador Update (Block 60 / Sacha Block):
  • Consortium previously awarded a 40% working interest in the Sacha Block PSC.
  • Following the swearing-in of President Noboa and the new government on May 24, 2025, NSE has resumed discussions with the Government of Ecuador.
  • NSE is working with partners to present a new proposal to the Ministry of Energy to sign a new Production Sharing Contract (PSC).
• Brazil Update (MOU with Vultur Oils):
  • MOU signed on August 5, 2025, to develop Concession Contracts REC-T-108 and REC-T-107 in the Reconcavo Basin, Bahia, Brazil.
  • Blocks are adjacent to Petrobras’ Araças field, which has produced ~5.9 million boe since 2012.
  • NSE will hold a 32.5% working interest.
  • Reserve Estimates (Effective August 1, 2025, PRMS Standards):
    • Gross Proved Reserves (NSE share): 3.07 million BOE (NPV10: US$32.83 million).
    • Gross Proved plus Probable Reserves (NSE share): 4.98 million BOE (NPV10: US$52 million).
  • NSE contribution defined in MOU: US$10 million (covering first and second stage investments).
  • Definitive agreement expected to be signed in late September 2025.
• Peru Update (Block 192):
  • Formal application submitted on August 13, 2025, to operate and invest in Block 192.
  • Awaiting final decision from Petroperu and Perupetro.
  • Historical context: Block was operated by NSE’s previous entity (2015–2021), peaking at >15,000 boepd. Perupetro estimated proved plus probable reserves of ~87.14 million barrels in 2019.
  • Block has been shut in since 2021.
• Mexico Update (Operaciones Petroleras Soledad - OPS):
  • OPS and Pemex are negotiating a migration from the existing O&G Contract to a mixed contract structure under the new Hydrocarbons Sector Law.
  • OPS has proposed suspending/amending the current work program to limit activities to operational continuity, avoiding new drilling or capital expenditures during negotiations.
  • External counsel advises Pemex has historically granted such authorizations.
• Private Placement:
  • Announced August 6, 2025.
  • Structure: Non-brokered private placement of 25,090,909 common shares.
  • Price: CAD$0.55 per share.
  • Gross Proceeds: Up to CAD$13,800,000 (approx. USD$10,000,000).
  • Closing: Expected September 2025, subject to TSXV acceptance and subscription agreement execution.
  • Hold Period: Four months and one day from closing.