Logan Energy Corp. Announces Strategic Montney Asset Acquisition, $50.0 Million in Equity Offerings, Expanded Credit Facilities and Pro Forma Guidance for 2026

Executive Summary

• Logan Energy entered a definitive purchase agreement to acquire 100% of the Vendor’s Montney assets in Simonette, Alberta for $62.5 million cash (pre‑adjustments), with closing expected around March 10 2026.
• Concurrently, Logan announced a bought‑deal equity financing of 68,494,000 common shares at $0.73 per share, raising gross proceeds of $50.0 million, and an expansion of its revolving credit facility to $250.0 million.
• The acquisition adds ~1,400 BOE/d (59% liquids) of production, 24.5 net sections of Montney acreage, and is projected to be highly accretive (≈2.2× 2026E operating income). Pro forma 2026 guidance was upgraded – average production now forecast at 16,000‑17,000 BOE/d and capital expenditures before A&D increased to $175‑185 million.

Key Details

• Acquisition
• Purchase price: $62.5 MM cash (pre‑closing adjustments); estimated total consideration including adjustments ≈ $65.7 MM.
• Effective date: Jan 1 2026; expected closing ≈Mar 10 2026.
• Assets acquired: 100% working interest in Montney lands at Simonette plus Deep Basin lands (Bilbo & Leland).
• Production added: ~1,400 BOE/d (770 bbl oil, 56 bbl NGLs, 3,444 mcf gas) – 59% liquids.
• Net acreage: 24.5 net sections (52.5 gross), with 40 net identified drilling locations booked at $0.6 MM each; additional 58 gross unbooked locations.
• Reserve impact: PDP ↑15‑19%; TP NAV to $0.75/share, TPP NAV to $1.45/share (fully diluted).

• Valuation multiples: ≈2.2× 2026E operating income; 1.6× PDP, 0.6× TP, 0.4× TPP (BTax NPV10).

• Equity Offerings

• Underwriters: National Bank Capital Markets (sole bookrunner) and TD Securities (co‑lead).
• Shares offered: 68,494,000 common shares at $0.73 per share → gross proceeds $50.0 MM.
• Structure: 34,247,000 shares in a public “prospectus” offering; 34,247,000 shares in a private placement (Rule 144A).
• Underwriter option: up to an additional 15% of prospectus shares for over‑allotments, exercisable until 30 days post‑offering.

• Use of proceeds: repay debt incurred for part of the acquisition purchase price.

• Credit Facility Expansion

• New commitment: $250.0 MM revolving credit facility from National Bank Capital Markets.

• Closing concurrent with the acquisition (≈Mar 10 2026).

• Pro Forma 2026 Guidance (updated)

• Average production: 16,000‑17,000 BOE/d (up 6%); H2 2026: 18,000‑19,000 BOE/d.
• Liquids share: 42% (up from 39%).
• Operating netback (after hedging): $27.07/BOE (↑7%).
• Adjusted Funds Flow: $22.9 MM (↑15%).
• Capital expenditures before A&D: $175‑185 MM (up $35 MM).
• Net debt year‑end: $149 MM (up $33 MM).

• Fully diluted common shares post‑offering: ≈664 MM.

• Other Operational Highlights

• Additional development opportunities: Deep Basin horizons with 10.2 net undeveloped locations.
• New drilling plan: first Flatrock delineation well slated for late 2026; over 240 Montney locations identified there.
• Decommissioning obligations on acquired assets: ~$17.6 MM (undiscounted).

Notable Quotes

• “The Acquisition is highly accretive on all key metrics both immediately and in the long term, significantly enhancing Logan’s long‑term organic growth plan.” – Richard F. McHardy, CEO
• “We are pleased to secure a $250 million credit facility that provides us with the financial flexibility needed to execute our expanded capital program.” – Brendan Paton, President & COO