Production averaged 15,463 BOE per day impacted by approximately 400 BOE per day of unplanned downtime
Funds flow1 totaled $23.5 million ($0.64 per fully diluted share)
Bonanza Charlie Lake asset Q1 production up 108% year-over-year
New well activity included four new wells in the Charlie Lake and one well in the Montney, all at various stages of production flowback
Top new Charlie Lake well achieved 30-day peak rate of approximately 1,400 BOE per day
Wembley Montney land holdings expanded to 71.75 net sections of contiguous acreage with additional area processing capacity secured to support further delineation
Patrick Oliver, President and Chief Executive Officer, stated: "I'm encouraged by our first quarter 2026 results, which reflect stable production and funds flow from our core assets, supported by front-loaded capital activity in Q1 that positions the Company well for the balance of 2026. We brought four Charlie Lake wells and one Montney well on production. Three Charlie Lake wells extended our core Bonanza development, delivering more top-performing production results that build on our successful Q4 2025 campaign and reflect our team's growing technical expertise in the play. The fourth is a southwest step-out designed to validate a portion of our Q4 2025 acquisition. Our latest Montney well was successfully drilled with a three-mile lateral and approximately 300 stages."
Mr. Oliver added: "With our Q1 capital program behind us and a constructive crude oil price backdrop, we remain focused on accelerating free funds flow generation and prioritizing debt reduction through the balance of the year, while maintaining the flexibility to respond opportunistically as conditions evolve."
FINANCIAL & OPERATING HIGHLIGHTS
Production averaged 15,463 BOE per day during the first quarter of 2026; in the quarter the Company experienced approximately 400 BOE per day of shut-in production related to unplanned downtime.
Funds Flow1 totaled $23.5 million ($0.64 per fully diluted share) in the first quarter of 2026.
Field Netback and Cash Netbacks1 in Q1 2026 averaged $22.36 per BOE and $16.92 per BOE, respectively, inclusive of realized hedging losses in the quarter of $2.96 per BOE, with WTI crude oil prices averaging US$71.93 per barrel and AECO natural gas prices averaging $2.00 per mcf during the period.
Production costs averaged $17.17 per BOE in the first quarter of 2026, lower year-over-year driven by less workover expenditures in the Cardium and lower third-party processing costs in the Charlie Lake and Montney.
Capital expenditures1 totaled $38.0 million in Q1 2026, of which approximately 92% was directed to the drilling, completion, equipping and tie-in operations, including supporting infrastructure, primarily in the Charlie Lake and Montney plays and 8% was directed to land acquisition and facility maintenance.
Adjusted Net Debt1 totaled $196.2 million at the end of the first quarter of 2026 driven by an active Q1 2026 capital program, resulting in an adjusted net debt to trailing twelve-month EBITDA ratio of 1.9:1, reflective of lower trailing crude oil pricing than the current environment.
Normal Course Issuer Bid was renewed on April 13, 2026. Under the renewed NCIB, the Company may repurchase up to 3,110,454 common shares, representing approximately 10 percent of its public float between April 15, 2026, and April 14, 2027. During the three months ended March 31, 2026, no common shares were repurchased for cancellation.
Financial and Operating Results
As at and for the three months ended($000s except $ per share)
March 31,2026
December 31,2025
March 31,2025
FINANCIAL
Revenue - realized oil and gas sales
66,423
57,833
70,690
Funds flow(1)
23,540
22,111
27,635
Per share - basic
0.65
0.61
0.74
Per share - diluted
0.64
0.60
0.73
Cash flow from operations
10,881
21,526
29,614
Per share - basic
0.30
0.60
0.79
Per share - diluted
0.30
0.59
0.78
Net loss(2)
(14,626
)
(4,648
)
(7,610
)
Per share - basic and diluted
(0.40
)
(0.13
)
(0.20
)
Capital expenditures
37,996
16,348
32,450
Oil and gas property acquisition(3)
-
16,029
-
Total assets
982,204
959,434
978,798
Adjusted net debt(4)
196,224
179,943
185,276
Bank debt
48,165
40,722
24,209
Shareholders' equity
507,569
522,032
533,830
OPERATIONS
Light oil
-bbl per day
6,228
6,274
6,546
-average price ($ per bbl)
89.89
71.90
91.22
NGLs
-bbl per day
1,540
1,507
1,679
-average price ($ per bbl)
43.39
37.61
45.39
Conventional natural gas
-MCF per day
46,173
44,839
46,390
-average price ($ per MCF)
2.41
2.69
2.42
Total barrels of oil equivalent per day (BOE)(5)
15,463
15,254
15,957
Notes for the table above:
(1)
Funds flow, while not recognized under IFRS Accounting Standards, is used by management to assess the Company's ability to generate cash from operations. For these purposes, the Company ...
