WESTGATE ENERGY ANNOUNCES UPDATE ON THREE WELL DRILLING PROGRAM AND Q2 2025 FINANCIAL RESULTS

Executive Summary

• Westgate Energy Inc. released its unaudited financial and operating results for the three and six months ended June 30, 2025, reporting a 31% increase in average production volume year-over-year.
• The company completed a three-well horizontal drilling program at its Beaverdam asset in the Cold Lake area, bringing all three new wells online on August 15, 2025, with initial production rates described as promising.
• The company executed significant capital raising activities, including a best-efforts public offering for ~$2.5 million and a first lien senior secured loan facility of up to US$25 million, with an initial draw of US$10 million.

Key Details

• Production Metrics (Q2 2025 vs Q2 2024):
  • Average daily production increased to 253 boe/d (51% crude oil) in Q2 2025, compared to 193 boe/d (45% crude oil) in Q2 2024.
  • Oil production: 130 bbl/d (Q2 2025) vs. 86 bbl/d (Q2 2024).
  • Natural gas production: 708 mcf/d (Q2 2025) vs. 618 mcf/d (Q2 2024).
  • NGLs: 5 bbl/d (Q2 2025) vs. 4 bbl/d (Q2 2024).
• Financial Performance (Three Months Ended June 30, 2025):
  • Total Revenue: $990,089 (vs. $794,946 in Q2 2024).
  • Operating Income: $477,666 (vs. $388,761 in Q2 2024).
  • Operating Netback: $20.74/boe (vs. $22.14/boe in Q2 2024).
  • Realized Price: $42.83/boe (vs. $45.06/boe in Q2 2024).
  • Crude Oil Realized Price: $74.41/bbl (vs. $91.68/bbl in Q2 2024).
  • Natural Gas Realized Price: $1.23/mcf (vs. $0.78/mcf in Q2 2024).
• Financial Performance (Six Months Ended June 30, 2025):
  • Total Revenue: $2,171,909 (vs. $1,526,098 in H1 2024).
  • Operating Income: $997,491 (vs. $665,357 in H1 2024).
  • Operating Netback: $21.52/boe (vs. $19.70/boe in H1 2024).
  • Expenditures on Property & Equipment: $(5,510,942) (vs. $919,578 in H1 2024).
• Drilling Operations:
  • Completed a three-well horizontal drilling program at the Beaverdam asset (Cold Lake area).
  • All three wells were brought online on August 15, 2025.
  • Wells are currently cleaning up and being optimized; a detailed production rate report is expected in the coming weeks.
  • Planning for a follow-up drill program at Beaverdam is underway, expected to commence in early Q4 2025.
• Financing Activities:
  • Closed a best-efforts public offering of 16,541,267 units (each comprising one common share and one share purchase warrant) for aggregate gross proceeds of approximately $2.5 million.
  • Closed a first lien senior secured loan facility for up to US$25 million; made an initial draw of US$10 million.
• Trading Status:
  • Shares began trading on the OTCQB Market under the symbol "WGTFF" as of June 25, 2025.