WESTGATE ENERGY PROVIDES OPERATIONAL UPDATE

Executive Summary

• Westgate Energy reports initial production of ~330 bbl/d from three newly‑started horizontal Mannville Stack wells at Beaverdam (mid‑late Dec 2025).
• A new on‑site holding tank facility is under construction and is expected to add >30 bbl/d incremental production and improve netbacks by >$5 per barrel once operational.
• Management plans to drill nine additional horizontal wells in 2026, targeting a total of 15 producing wells at Beaverdam by year‑end, assuming WTI oil price of US$60‑65/bbl.

Key Details

• Three new horizontal wells: combined output ≈ 330 bbl/d over a 7‑day period; initially run at conservative pump rates to mitigate sand production and equipment wear.
• Well optimization plan: gradual increase in pump rates expected to raise daily production as clean‑up phase progresses.
• Two vertical stratigraphic test wells: completed in Fall 2025, providing refined geological mapping, confirming future drilling inventory in some zones and defining pool boundaries in others; results incorporated into updated corporate presentation on the company website.
• New holding tank facility: under construction at the existing Beaverdam pad; designed to handle up to 25 wells, improve oil recovery from sand/emulsion, reduce third‑party handling costs, and deliver >30 bbl/d incremental production with netback uplift >$5/bbl.
• Future drilling program (2026): plan to drill nine additional horizontal wells at Beaverdam, contingent on weather and spring breakup; expected start late May/early June 2026.
• Projected well count: total producing wells at Beaverdam anticipated to reach 15 by end‑2026.
• Price assumption: drilling program modeled on WTI oil price of US$60–65 per barrel.

Notable Quotes

“We are pleased with the overall results delivered by our second three‑well program at Beaverdam… This operational refinement is expected to help guide our future drilling and completion strategies at Beaverdam in 2026 and beyond.” – Management, Westgate Energy Inc.