The AIF contains the reserves data and other oil and gas information as required by National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities. The financial and reserves information contained in the Annual Filings is consistent with the unaudited financial and reserves information disclosed in the press release issued by Birchcliff on February 11, 2026. The Annual Filings are available electronically on the Corporation's website at www.birchcliffenergy.com and on SEDAR+ at www.sedarplus.ca.
Chris Carlsen, President and Chief Executive Officer of Birchcliff, commented: "2025 was a very successful year for Birchcliff, as we executed our disciplined capital program and delivered strong operational and financial results, achieving record annual average production, while we significantly reduced our indebtedness. Looking ahead, we continue to be focused on profitable production growth, strengthening our balance sheet and paying a sustainable dividend to our shareholders. Our 2026 guidance remains unchanged and our capital program has been designed with the flexibility to adjust as needed in response to commodity prices. We are benefiting from our natural gas marketing diversification, with 54% of our natural gas production in 2026 anticipated to be effectively sold in the NYMEX HH and Dawn sales markets, and being fully unhedged on natural gas, oil and NGLs production allows us to fully participate in any commodity price strengthening this year.
In addition, we are encouraged by the continued progress at our Elmworth asset. In February 2026, we completed a horizontal land retention well that was drilled in 2023 to continue a number of Montney sections in the area. The well was flowed for 5.5 days, achieving a stabilized raw natural gas rate of 14 MMcf/d on the final day of flow. This positive result, along with the results of the horizontal well completion and flow test conducted in 2025 in Elmworth, supports the significant long-term potential of this large Montney land position and reinforces Elmworth as an important future growth opportunity for Birchcliff."
OPERATIONAL UPDATE
Greater Pouce
In February 2026, Birchcliff completed its 4-well 13-21 pad in Pouce Coupe. The wells are expected to be turned over to production in late March or early April 2026. This pad targeted high-rate natural gas wells in the Lower and Upper Montney.
The Corporation is currently drilling its 6-well 04-05 pad in Pouce Coupe, with completions operations scheduled to begin in Q2 2026. This pad is targeting high-rate natural gas wells in the Lower Montney. The wells are anticipated to be brought on production in Q2 2026.
In Gordondale, the Corporation is currently preparing for drilling operations on its 3-well 05-34 pad, with completions operations scheduled to begin in Q2 2026. This pad is targeting condensate-rich natural gas in the Lower Montney. The wells are anticipated to be brought on production in late Q2 2026.
Elmworth
In Elmworth, the Corporation completed a horizontal Montney land retention well in February 2026 and a 5.5 day flow test was performed with a stabilized raw natural gas rate of 14 MMcf/d at 10 MPa casing pressure over the final day of the test, which is aligned with Birchcliff's expectations for the wellbore design and lateral length. The well is not currently planned to be tied in. The following table summarizes the test result rates from the well:
Well Flow Test Rates, One-Day Stabilized Average
Rate(1)
Total production rate (boe/d)
2,402
Natural gas production rate (Mcf/d)
14,362
Condensate production rate (bbls/d)
8
(1) Represents the volumes measured at the wellhead separator for the day of production immediately after the well was considered stabilized after producing fracture treatment fluid back to surface in an amount such that flow rates of hydrocarbons became reliable. The natural gas volumes represent raw volumes as opposed to sales volumes. See "Advisories, Flow Test Results and Production Rates".
The formal planning is progressing for the construction of the first phase of Birchcliff's proposed 100% owned and operated natural gas processing plant in Elmworth (the "Goodfare Gas Plant"). The first phase of the plant is expected to have a processing capacity of 100 MMcf/d, with optionality to expand capacity through additional phases in the future. Birchcliff is targeting a final investment decision on the construction of the Goodfare Gas Plant in late 2026 or early 2027.
ABBREVIATIONS
bbl
barrel
bbls/d
barrels per day
boe
barrel of oil equivalent
boe/d
barrel of oil equivalent per day
condensate
pentanes plus (C5+)
HH
Henry Hub
