Fourth-quarter production up 61%; de-risked, repeatable Provost oil play sets up a fiscal 2027 program of one multilateral horizontal well and one well re-entry.

July 21, 2026 – TheNewswire – Calgary, Alberta - WesCan Energy Corp. (“WesCan” or the “Company”) (TSXV: WCE) today announced its financial and operating results for the year ended March 31, 2026 — a turnaround year in which the Company established a repeatable, oil-weighted development play at Provost, Alberta. A multilateral horizontal oil well brought on production during the year materially increased production, expanded operating netbacks by 50%, reduced operating costs per barrel by 36% and more than doubled adjusted funds flow, while converting booked undeveloped reserves into production. The improvement followed a more challenging fiscal 2025 and was delivered through a focused, single-year capital program.

Fourth Quarter and Year-End Highlights

	Q4 2026	Q4 2025	Year 2026	Year 2025
Average production (boe/d)	212	131	172	146
Petroleum & natural gas revenue	$1,444,082	$861,093	$4,232,059	$4,034,886
Royalties	$257,192	$98,478	$626,678	$483,621
Operating costs	$560,535	$657,818	$1,980,529	$2,626,094
Operating netback ($/boe) (1)	$32.61	$8.81	$25.89	$17.31
Adjusted funds flow (1)	$495,020	$250,820	$1,231,177	$525,200

 

Year ended March 31	2026	2025
Cash flow from operating activities	$1,064,053	$587,164
Adjusted funds flow per share – basic (1)	$0.03	$0.01
Operating costs ($/boe)	$31.56	$49.12
Net loss	$(452,649)	$(799,969)
Capital expenditures	$1,696,563	$150,689
Net debt (1)	~$3.0 million	~$2.1 million
Total assets	$6,595,187	$5,843,417
Proved developed producing reserves (MBOE)	264.8	259.9
Proved (1P) / proved plus probable (2P) reserves (MBOE)	396.8 / 497.5	424.3 / 542.7

(1) Non-GAAP financial measure or ratio; see “Non-GAAP and Other Financial Measures.”

Highlights

• Fourth-quarter production increased 61% to 212 boe/d and full-year production increased 17% to 172 boe/d, with production remaining approximately 87% weighted to oil and liquids. 

  

• Operating netback expanded 50% to $25.89/boe for the year and 270% to $32.61/boe in the fourth quarter, achieved despite a 14% decline in benchmark WTI prices. 

• Operating costs decreased 25% to $1,980,529, and 36% on a per-boe basis to $31.56/boe. 

• Adjusted funds flow increased 134% to $1,231,177 and cash flow from operating activities increased 81% to $1,064,053. 

• Net loss narrowed 43% to $452,649 (2025 – $799,969), continuing to reflect non-cash depletion, depreciation and accretion of $1,282,386. 

• Proved developed producing reserves increased to 264.8 MBOE — approximately 107% replacement of the year’s production — as the new well converted approximately 108 MBOE from proved undeveloped to producing. 

Management Commentary

“Fiscal 2026 was the year WesCan turned the corner,” said Leo Berezan, Chief Executive Officer and Chairman of WesCan. “We proved up a repeatable, oil-weighted development play at Provost, more than doubled our adjusted funds flow, and converted booked undeveloped reserves into production — all from a single, disciplined capital program. That is the foundation we intend to build on, and our focus now is on advancing our de-risked inventory while continuing to strengthen the Company’s financial position.”

“The Provost multilateral changed the trajectory of our operations,” said Sarshar Ahmed, Chief Operating Officer and Director of WesCan. “It lifted fourth-quarter production 61%, cut our operating cost per barrel by more than a third, and expanded our operating netback by 50% even as oil prices weakened. With our newly acquired 3D seismic and expanded land position, we move into fiscal 2027 with a program built around one multilateral horizontal well and one well re-entry, and potential follow-up development locations behind it.”

Operational Update — Provost

During fiscal 2026, WesCan drilled and brought on production a multilateral horizontal oil well at Provost, Alberta (WesCan 104 Provost 15-27-38-3), in the Company’s 100% operated, oil-weighted core area. The well has recently produced at approximately 90 bbl/d of oil and represented a substantial share of fourth-quarter volumes. The Company’s crude at Provost is approximately 29° API medium-gravity oil, trucked to market to capture WTI-based pricing.

• De-risking: the well converted approximately 108 MBOE from proved undeveloped to proved developed producing, confirming the productivity of the multilateral horizontal development concept in the area. 

• Seismic and land: WesCan acquired a 3D seismic trade license to further evaluate the play and an additional half section (approximately 320 acres) of acreage. 

Initial and short-term production rates are not necessarily indicative of long-term performance or ultimate recovery; see “Oil and Gas Advisories.”

Financial Review

Petroleum and natural gas revenue increased 5% to $4,232,059 (2025 – $4,034,886) as a 17% increase in production more than offset a 14% decline in benchmark WTI prices. Royalties were $626,678 (2025 – $483,621), or 14.8% of revenue, reflecting a production-mix shift toward freehold lands at Provost.

  

Operating costs decreased 25% to $1,980,529 (2025 – $2,626,094) and fell 36% per boe to $31.56/boe (2025 – $49.12/boe), driven by fixed-cost absorption from higher volumes and the non-recurrence of a one-time fiscal 2025 workover program. Operating netback expanded 50% to $25.89/boe.

Adjusted funds flow increased 134% to $1,231,177 (2025 – $525,200) and cash flow from operating activities increased 81% to $1,064,053 (2025 – $587,164). The Company recorded a net loss of $452,649 (2025 – net loss of $799,969), which continued to reflect non-cash depletion, depreciation and accretion of $1,282,386.

WesCan invested $1,696,563 in the Provost program during the year. As the program exceeded adjusted funds flow, net debt increased to approximately $3.0 million at March 31, 2026 (March 31, 2025 – approximately $2.1 million) and the working capital deficiency was $1,341,723 (2025 – $981,640). The financial statements include a going-concern note and the Company expects to require additional financing to fund future development. WesCan had no commodity hedges in place during or at the end of the year.

Reserves

The Company’s reserves were independently evaluated by McDaniel & Associates Consultants Ltd. effective March 31, 2026 using forecast prices and costs. Proved developed producing reserves increased to 264.8 MBOE (2025 – 259.9 MBOE), approximately 107% of the year’s production, as the Provost well converted approximately 108 MBOE from proved undeveloped to producing. Total proved reserves were 396.8 MBOE and proved plus probable reserves were 497.5 MBOE; on a total basis reserves declined modestly as annual production exceeded new bookings. Reserves are reported in accordance with NI 51-101.

Outlook

Fiscal 2026 established a repeatable, oil-weighted development play at Provost. Building on the multilateral horizontal well brought on production during the year, WesCan intends to advance its de-risked development inventory, supported by its newly acquired 3D seismic trade license and additional acreage.

For fiscal 2027, the Company’s planned program at Provost comprises one multilateral horizontal well and one well re-entry, both targeting the same oil-weighted reservoirs de-risked by the fiscal 2026 well. The re-entry is expected to utilize existing wellbore infrastructure. Beyond this program, Management has identified potential follow-up development locations on the Company’s Provost acreage, which it continues to evaluate with the benefit of its newly acquired 3D seismic and which remain subject to further technical evaluation, regulatory approval and available financing. WesCan will continue to prioritize field-level cost control, the re-activation of shut-in wells, and strengthening its financial position, while remaining disciplined on capital allocation given commodity-price and financing conditions.

Non-GAAP and Other Financial Measures

This news release refers to certain measures that are not determined in accordance with IFRS, including “adjusted funds flow,” “operating netback,” “operating costs (per boe)” and “net debt.” These measures do not have standardized meanings prescribed by IFRS and may not be comparable to similar measures presented by other issuers. Adjusted funds flow is calculated as cash flow from operating activities before changes in non-cash working capital and expenditures on decommissioning obligations. Operating netback is calculated as petroleum and natural gas revenue less royalties and operating costs, expressed per boe. Net debt is calculated as notes payable plus trade and other payables, less current assets. Management uses these measures to evaluate operating performance and liquidity. Reconciliations to the most

  

directly comparable IFRS measures are provided in the Company’s MD&A for the year ended March 31, 2026, available on SEDAR+ at www.sedarplus.ca.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws, including statements regarding the Company’s fiscal 2027 program (including the planned multilateral horizontal well and well re-entry), potential follow-up development locations, the expected benefits of the 3D seismic license and additional acreage, anticipated production, cost and netback levels, reserve estimates and conversion, financing plans, and the Company’s ability to continue as a going concern. Forward-looking statements are based on assumptions and are subject to known and unknown risks and uncertainties — including commodity price volatility, production and reserve risk, access to capital, regulatory approvals, and the risks disclosed in the Company’s filings — that may cause actual results to differ materially. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update them except as required by law.

Oil and Gas Advisories

BOE disclosure: Barrels of oil equivalent (boe) are derived by converting natural gas to oil at a ratio of six thousand cubic feet of gas to one barrel of oil (6 Mcf : 1 bbl). A boe conversion ratio of 6 Mcf : 1 bbl is based on an energy-equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion ratio of 6:1 may be misleading as an indication of value.

Production rates: References to production or test rates, including the approximately 90 bbl/d at the Provost 15-27-38-3 well, are not necessarily indicative of long-term performance or of ultimate recovery. Initial production rates may decline materially over time and should not be relied upon in calculating aggregate production for the Company.

Reserves and drilling locations: Reserves information is presented in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities and the COGE Handbook, and was prepared by the Company’s independent qualified reserves evaluator effective March 31, 2026. Proved reserves are those with a high degree of certainty (at least 90%); proved plus probable reserves carry a 50% certainty. Estimates of reserves and future net revenue are inherently uncertain. References to potential follow-up development locations are to unbooked locations that have been identified by Management based on internal and third-party evaluation; unbooked locations are speculative, do not have attributed reserves, and there is no certainty that the Company will drill them or that they will result in commercial production.

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For further information

WesCan Energy Corp.  |  1900, 350 – 7th Ave SW, Calgary Alberta. T2P 3N9

Leo Berezan, Chief Executive Officer and Chairman

Telephone: +1-604-240-3064   |   Email: leo@berezan.ca

 

Sarshar Ahmed, Chief Operating Officer and Director

Telephone: +1-403-816-4037   |   Email: sahmed@wescanenergycorp.com

Company filings are available on SEDAR+ at www.sedarplus.ca.