LOGAN ENERGY CORP. ANNOUNCES 2026 BUDGET AND OPERATIONS UPDATE

Executive Summary

• Logan Energy Corp. released its 2026 capital budget of $140‑$150 million targeting production of 15,000‑16,000 BOE/d (≈19% growth YoY).
• Detailed drilling and infrastructure plans were disclosed for the Pouce Coupe and Simonette areas, including seven new oil‑weighted wells at Pouce Coupe and a South Simonette oil battery/compressor station.
• Full 2026 financial guidance was provided, highlighting adjusted funds flow of $120 MM, operating netback after hedging of $25.35/BOE, AFF of $0.20/share, and year‑end net debt of $116 MM.

Key Details

• Capital Budget: $140–$150 MM for 2026; $105 MM allocated to drilling/completion/equipment, $40 MM to infrastructure, land & contingency.
• Production Guidance (2026):
• Average production: 15,000‑16,000 BOE/d (39% liquids).
• H2 2026 average: 16,500‑17,500 BOE/d (41% liquids).
• Commodity Price Assumptions: WTI $60/bbl; AECO natural gas $3.00/GJ; CAD/USD 1.40.
• Financial Guidance (midpoint):
• Operating netback after hedging: $25.35/BOE.
• Adjusted funds flow: $120 MM ($21.19/BOE).
• AFF per share (basic): $0.20.
• Net debt year‑end: $116 MM.
• Drilling Program Highlights:
• Pouce Coupe – 7 net oil‑weighted wells (D1 Lower Middle Montney) + 2 gas‑weighted locations (3‑15 and 6‑18 wells).
• Simonette – 5 net lower Montney oil locations; completion of 0.7 net Spirit River Deep Basin well (Wilrich strandplain play).
• Infrastructure Projects:
• South Simonette oil battery & compressor station to support growth to 16,000‑23,000 BOE/d.
• Expansion of Pouce Coupe 4‑19 gas plant – increase compression capacity by ~10 mmcf/d to total 50 mmcf/d; add centralized H₂S treating.
• 2025 Operations Update:
• First two wells at Flatrock drilled (10‑day average drill time).
• Pouce Coupe 3‑15 well spudded; Simonette Wilrich Spirit River well completed and moving to lower Montney drilling.
• Q4 2025 production ~15,200 BOE/d (39% liquids).
• Commodity Hedging Contracts (as of 1 Jan 2026):
• Crude oil swaps: 2,000 bbls/d @ CA$85.57 (Jan‑Jun 2026) and 1,000 bbls/d @ CA$84.11 (Jul‑Dec 2026).
• Natural gas swaps covering volumes from 10,000 to 30,000 GJ/d at fixed prices ranging $2.64–$3.50/GJ across 2026‑2028 periods.
• Share Capital: 595.7 M common shares outstanding; 64.3 M warrants ($0.35 strike, exp Jul 12 2028); 42.7 M stock options ($0.78 strike, avg. 3.5 yr term).

Notable Quotes

• “Our 2026 budget reflects a disciplined approach to growth while preserving balance‑sheet strength in a weaker oil price environment,” – Richard F. McHardy, CEO.
• “The South Simonette battery and the Pouce Coupe plant expansion are pivotal assets that will unlock significant incremental production and improve capital efficiency,” – Brendan Paton, President & COO.