The audited financial statements, related management's discussion and analysis ("MD&A") and annual information form for the year ended December 31, 2025 ("AIF") are available on SEDAR+ at www.sedarplus.ca. Select financial and operating information for the three months and year ended December 31, 2025 appear below and should be read in conjunction with the related financial statements and MD&A.
Financial and Operating Highlights
2025 Highlights
Production volumes averaged 563 boe/d (47% crude oil, 53% natural gas), an increase of 11 percent from 2024. The southern Alberta oil assets contributed 264 bbl/d for the year. The light oil discovery well in the southern Alberta Upper Banff Formation, which came on production on August 8, 2024, contributed 154 bbl/d for the year. The Company's low decline natural gas assets contributed 1,792 mcf/d (299 boe/d) for the year.
2025 capital expenditures were $6.9 million, including $5.7 million related to the drilling of the 16-20 well in the southern Alberta Deep Basin and $875 thousand to expand our land holdings in the Monarch area.
Operating netbacks decreased to $7.61/boe from $8.69/boe in 2024. Tuktu's realized sales price increased to $43.91/boe due to oil production growth and a realized crude oil price of $80.72/bbl in the year; however, this was offset by an increase in operating costs to $23.27/boe from $15.10/boe in 2024.
Adjusted working capital on December 31, 2025 decreased from $8.8 million as at December 31, 2024 to $853 thousand. The decrease was due primarily to the capital expenditures on the 16-20 well.
Q4 2025 Highlights
Production volumes averaged 477 boe/d (39% crude oil, 61% natural gas), a decrease of 26 percent from the same period of 2024. The light oil discovery well in the southern Alberta Upper Banff Formation contributed 55 bbl/d for the fourth quarter. The Company's natural gas assets produced 1,742 mcf/d (290 boe/d) in the fourth quarter, down 22% from the comparable period in 2024 due to natural declines and production shut-ins related to low natural gas prices.
Adjusted funds flow from operations was ($289) thousand, a decrease of 203% from the fourth quarter of 2024.
Q4 2025 capital expenditures were $222 thousand; approximately $166 thousand of the expenditures were allocated to the installation of a pumpjack on a well that was activated in Monarch with the remainder on land and geophysical work.
Operating netbacks decreased to $4.90/boe from $13.02/boe in the comparable period of 2024. Tuktu's realized sales price decreased to $36.67/boe, reflecting a realized crude oil price of $71.13/bbl compared to $85.14/bbl in the comparable period of 2024. Operating expenses also increased from $16.93/boe in 2024 to $23.53/boe in the fourth quarter of 2025.
Geological Update
Tuktu's technical team continues its analysis of the Monarch oil play, utilizing data and leveraging learnings from the area.
Key elements of the Company's ongoing geological program are as follows:
2D seismic review/interpretation confirms the Lower Banff A&B and Big Valley Formations are contiguous across Tuktu's land base. The Upper Banff porous sand is not contiguous across the land base.
Core rock studies, 2D seismic interpretation, drill cuttings and petrophysical work have distinguished the Upper Banff porous sand and its distinct lithology from the Banff A/B (lower) and Big Valley formations.
3D seismic will aid in mapping the Upper Banff porous sand, along with better defining the Lower Banff A&B and Big Valley Formations, adding to the geological model and de-risking the play.
3D seismic data will allow Tuktu to pin-point vertical drilling location(s) that have multiple stacked net-pay zones for better cost effectiveness and economics.
The team is in negotiations with a third-party seismic broker to acquire a portion of the seismic data over Tuktu's land base.
The team also continues to:
Evaluate the divestment of non-core assets.
Reduce corporate ARO.
Evaluate assets that compliment our Monarch asset with highly accretive oil and liquid-rich opportunities that are strategically appropriate for a junior publicly traded company.
Operations Update
The Company's ...
