Lotus Creek Exploration Inc. Announces Fourth Quarter 2025 Operating Results, Year-End Reserves Summary and Operational Update
Executive Summary
- Lotus Creek reported strong Q4 2025 production (3,391 boe/d) and a 307% increase in adjusted funds from operations versus Q3, despite lower oil prices.
- FY 2025 results showed average production of 2,064 boe/d, adjusted FFO of $13.5 M, net income of $1.8 M, and cash flow of $12.8 M with net debt of $9.8 M (0.3× annualized FFO).
- The company raised its 2026 production guidance to 3,600‑4,000 boe/d and released a year‑end independent reserves evaluation showing 11.2 Mboe total proved plus probable reserves with an after‑tax NPV of $154.4 M.
Key Details
- Production Highlights
- Q4 2025 average: 3,391 boe/d (2,055 bbl oil, 634 bbl NGL, 4,213 mcf gas).
- FY 2025 average: 2,064 boe/d (1,242 bbl oil, 342 bbl NGL, 2,879 mcf gas).
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Spotlight well 104/06‑26‑042‑05W5 produced ~55 k bbl oil, 57 k mcf gas, 8 k bbl NGL in first 100 days; Jan 2026 avg 585 boe/d, Feb 2026 avg 1,200 boe/d.
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Financial Performance
- Adjusted FFO FY 2025: $13.5 M ($19.87/boe); Q4 2025 adjusted FFO $7.9 M ($25.39/boe).
- Cash flow from operations FY 2025: $12.8 M ($18.81/boe); Q4 2025 cash flow $5.5 M ($17.71/boe).
- Net income FY 2025: $1.8 M ($0.05/share).
- Capital expenditures FY 2025: $43.1 M (drilling, seismic, 5,000 boe/d battery construction).
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Net debt at 31 Dec 2025: $9.8 M; net‑debt/annualized FFO = 0.3×.
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Credit Facility
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Amended ATB Financial facility, borrowing base increased to $40 M (from $35 M).
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Drilling Activity
- FY 2025: 4 Belly River wells drilled; 3 of 4 have achieved payout within $15.5 M program.
- Q1 2026: Completed 3 gross (2.9 net) Belly River wells; production from these wells expected March 2026.
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Accelerated schedule – an additional 0.9‑net well drilled in Q1 2026 ahead of original plan.
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Reserves Evaluation (as of 31 Dec 2025)
- Proved Developed Producing: 2.528 Mboe; Total Proven: 7.2 Mboe; TP+Probable: 11.2 Mboe.
- After‑tax NPV (10% discount): PDP $84.7 M, TP $103.7 M, TPP $154.4 M.
- Future Development Capital (FDC) required: $41.2 M for TP, $70.6 M for TPP.
- Reserve Life Index: PDP 3.2 yr, TP 4.9 yr, TPP 7.4 yr.
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NAV per share (after‑tax): PDP $2.26, TP $2.93, TPP $4.61.
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Guidance Update
- Revised 2026 production guidance: 3,600‑4,000 boe/d (up from 3,400‑3,800).
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Capital & abandonment budget unchanged at $42 M; crude/NGL weighting 77%, gas 23%.
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Operational Investments
- Completed 44 sq mi 3D seismic program – de‑risking stacked Belly River sands.
- Constructed 5,000 boe/d battery with expandable design to support future growth.
Notable Quotes
“Our four‑well program has unlocked significant value for shareholders, demonstrating compelling single‑well economics and the repeatability of our inventory.” – Kevin Johnson, President & CEO
All forward‑looking statements are subject to risks and uncertainties detailed in the full release.