Journey Energy Inc. Announces Year-End 2025 Reserves, Achieves Record Net Asset Value of $1 Billion or $14.17 per Fully Diluted Share

Executive Summary

• Journey Energy reports a mixed reserve picture for 2025: PDP reserves fell 11% to 31.7 MMboe, while total proved‑plus‑probable (TPP) reserves rose 1% to 86.3 MMboe and NPV@10 % increased 10% to $972 million.
• The Duvernay joint‑venture drives the positive outlook – 12 gross (3.6 net) producing wells and 70 gross (21.0 net) locations contribute $325 million of TPP value, with $238 million of future development capital (FDC) slated for 2026‑2030 at a low $14.41/boe cost and a 3.23:1 recycle ratio.
• Power projects add an estimated pre‑tax NPV@10 % of $74.9 million; the Gilby project is expected on‑stream in Q1 2026, Mazeppa in Stage 5 approvals, and Countess already producing.

Key Details

• Reserve Quantities (Dec 31 2025)
• PDP: 31.7 MMboe (‑11%) – NPV@10 % $315.2 M, NAV/Share $3.84.
• P+PDP: 41.1 MMboe – NPV@10 % $393.7 M, NAV/Share $4.96.
• Total Proved (TP): 49.5 MMboe (‑2%) – NPV@10 % $552.7 M, NAV/Share $8.21.

• TPP: 86.3 MMboe (+1%) – NPV@10 % $972.0 M, NAV/Share $14.17.

• Duvernay Joint‑Venture Highlights

• 12 gross (3.6 net) producing wells; 70 gross (21.0 net) locations booked in 2025.
• TPP value from Duvernay: $325 M.
• FDC allocated to Duvernay: $238 M, with 80% spent 2026‑2030.

• Finding & Development cost: $14.41/boe; recycle ratio 3.23:1 (netback $46.55/boe).

• Future Development Capital (FDC) – Undiscounted totals:

• Proved: $228 M (2026‑2030 breakdown provided).

• Proved + Probable: $479 M.

• Finding, Development & Acquisition Costs (2025)

• FD&A capital (incl. A&D): $69.8 M; reserve additions 3.15 MMboe → $22.12/boe (incl. FDC).

• Proved FD&A cost excl. FDC: $10.44/boe.

• Operating Metrics

• Operating netback 2025 (unaudited): $20.50/boe.

• Reserve life index (RLI) – PDP 8.7 yr; TP 11.5 yr; P+PDP 11.0 yr; TPP 18.0 yr.

• Power Projects (not part of reserves but included in NAV)

• Countess (CPP): pre‑tax NPV@10 % $5.7 M (on‑stream).
• Gilby (GPP): projected on‑stream Q1 2026, NPV@10 % $32.2 M.
• Mazeppa (MPP): Stage 5 approvals, NPV@10 % $37.0 M.

• Combined power NPV@10 %: $74.9 M.

• Financial Outlook

• Preliminary 2025 financials pending; full audited results to be released March 11 2026.
• Guidance for 2026 capital program (focused on Duvernay) will accompany the March 11 release.

Notable Quotes

“Journey’s increase in reserve value was achieved despite a 12% drop in near‑term oil pricing, underscoring the strength of our Duvernay development and disciplined capital allocation.” – Alex G. Verge, President & CEO

All forward‑looking statements are subject to risks and uncertainties detailed in the full release.