Logan Energy Corp. Reports First Quarter 2026 Results; Provides Operations Update and Board Appointment

News provided by Logan Energy Corp. May 12, 2026, 16:30 ET Share this article Share to X Share this article Share to X CALGARY, AB , May 12, 2026 /CNW/ - Logan Energy Corp. (TSXV: LGN ) (" Logan " or the " Company ") is pleased to announce its operating and financial results for the three months ended March 31, 2026 and to provide an operations update. Selected financial and operational information set out below should be read in conjunction with the Company's unaudited condensed interim financial statements and related management's discussion and analysis (" MD&A ") as at and for the three months ended March 31, 2026 and 2025. These documents are filed on SEDAR+ at www.sedarplus.ca and are available on the Company's website at www.loganenergycorp.com .

The highlights reported throughout this press release include certain non-GAAP measures and ratios which have been identified using capital letters and are defined herein. The reader is cautioned that these measures may not be directly comparable to other issuers; refer to additional information under the heading "Reader Advisories – Non-GAAP Measures and Ratios" . FIRST QUARTER 2026 HIGHLIGHTS Logan reported quarterly average production of 14,237 BOE per day (36% liquids) during the first quarter of 2026, up 43% from 9,974 BOE per day (34% liquids) in the same quarter of 2025.

Production for the quarter was in line with Logan's internal forecast and the Company is on track to deliver on its guidance for average production in excess of 18,000 BOE per day for the second half of 2026. The Company's Operating Netback before hedging averaged $22.92 per BOE in the three months ended March 31, 2026, an increase of 10% from $20.85 per BOE in the first quarter of 2025. With average realized pricing 4% lower than the same time last year, the improvement in Operating Netbacks resulted from lower per unit cash costs.

Logan generated Adjusted Funds Flow of $24.9 million ($0.04 per share, diluted) in the first quarter, up 56% from $16.0 million ($0.03 per share, diluted) reported in the comparative quarter of 2025. The Company executed an active capital program during the quarter, progressing its organic growth initiatives and core infrastructure projects. Capital expenditures before A&D were $54.6 million for the three months ended March 31, 2026, including $38.0 million directed to drilling and completions, $16.2 million on facilities, pipelines and equipment and $0.4 million on land.

At Simonette, Logan drilled 4 (2.7 net) wells, of which 1 (0.7 net) well in the Spirit River (Wilrich) was completed and brought on production. At Pouce Coupe, Logan drilled 6 (6.0 net) wells, of which 1 (1.0 net) well at North Pouce was completed and 1 (1.0 net) well was completed and brought onstream. Logan commenced an expansion project at its Pouce 4-19 facility along with equipment procurement for its South Simonette oil battery construction project.

On March 10, 2026, Logan closed the acquisition of certain crude oil and natural gas assets located in the Simonette area for total cash consideration of $66.3 million after estimated closing adjustments (the " Acquisition "). Logan previously acquired a 50% operated working interest in the Simonette assets on December 17, 2024. The Acquisition strategically consolidates these Montney oil-focused joint interest partner lands to a 100% working interest and includes incremental Deep Basin lands offsetting Simonette in the Bilbo and Leland areas of Alberta.

Concurrent with the Acquisition, Logan raised aggregate gross proceeds of $70.0 million pursuant to bought-deal equity financings, including the exercise of the overallotment option in full. Logan issued an aggregate of 95.9 million common shares at an issue price of $0.73 per common share. Net proceeds were used to fund the Acquisition.

Logan exited the first quarter with Net Debt of $118.6 million or 1.2 times its annualized Adjusted Funds Flow for the first quarter. Effective March 10, 2026, the lenders upsized the borrowing base under the Company's credit facilities from $150.0 million to $250.0 million. The Company is well positioned financially to execute on its 2026 capital expenditure program and strategic growth plans.

The following table summarizes selected highlights for the three months ended March 31, 2026 and March 31, 2025: OPERATIONS UPDATE The year started off with three strategic single wells, with the following updates for each of these wells: Pouce Coupe 6-18 Pad - Upper Montney (1.0 net well): As previously disclosed, this well unlocked the Upper Montney bench in Pouce Coupe and continues to perform in line with our expectations with an average rate of 778 BOE/d (17% liquids) for the first 60 days of production (IP60). North Pouce 3-15 Pad (1.0 net): Onstream timing of this well has been impacted by delays at a third-party facility and breakup conditions restricting our ability to truck water. The well is now expected to be onstream within the next month, subject to road conditions.

Simonette 16-17 Pad - Wilrich (0.7 net well): Due to a mechanical failure of a frac sleeve, only 843m of horizontal length was completed as compared to the planned length of 3,000m. Despite the shorter than planned horizontal, the well averaged approximately 5.3 MMcf/d of natural gas, 23 bbls/d of NGLs and 62 bbls/d of condensate (974 BOE/d, 9% liquids) over the first 30 days (IP30). Normalizing production to full‑length performance, Logan is very encouraged by the results and believes it unlocks significant follow‑on inventory in the Wilrich play at Simonette.

The Wilrich further complements Logan's broader Cretaceous inventory in Simonette, including the Dunvegan and Falher formations, where the Company has been expanding its land position. Following the above three wells, development for the rest of the year is focused on four multi-well Montney oil pads, two in each of Pouce Coupe and Simonette which remain on track to deliver a significant growth ramp into the second half of the year: Pouce Coupe 7-12 Pad (3.0 net wells): Three wells targeting Lower Middle Montney (D1) oil were completed ahead of schedule in April and the pad began producing as of May 2. Pouce Coupe 15-15 Pad (3.0 net wells): Three wells targeting Lower Middle Montney (D1) oil were also completed ahead of schedule and the pad is expected to be put on production within the next week.

Simonette 6-9 Pad (3.0 net wells): As previously disclosed, three wells targeting the Lower Montney oil play have been drilled. Completions are planned following spring breakup with first production at the end of the third quarter once the Simonette South Battery is commissioned. Simonette 16-13 Pad (2.0 net wells): Drilling operations began on this pad in March, but have now paused for spring breakup.

Drilling is expected to resume in June with the pad onstream at the end of the third quarter once the Simonette South Battery is commissioned. Additionally, the Flatrock 5-26 Pad (1.0 net well) completion is scheduled for the second half of 2026. Logan's operating plan is at full capacity throughout the second quarter.

Given the current strength in oil prices, Logan is building a state of readiness to potentially expand its capital budget in the second half of the year. The Company will complete its second quarter program and continue monitoring oil price strength prior to committing to an expanded budget. UPCOMING BOARD APPOINTMENT Logan is pleased to announce that Brendan Paton, the Company's President and Chief Operating Officer, is expected to be appointed to its Board of Directors as part of the Company's upcoming Annual General Meeting on May 15, 2026.

Richard McHardy, Chief Executive Officer and Director, commented: "On behalf of the Board of Directors of Logan, I look forward to welcoming Brendan to the Board. Over the past three years, including his progression to President, Brendan has shown steady, disciplined leadership and has contributed meaningfully to strengthening our operations and advancing key priorities across the business. He brings a practical, results‑driven approach that aligns well with the Company's strategic direction.

His strong understanding of our assets and the competitive landscape in which we operate will provide valuable insight to the Board as we continue to grow our business and deliver value for shareholders." ABOUT LOGAN ENERGY CORP. Logan is a growth-oriented exploration, development and production company formed through the spin-out of the early stage Montney assets of Spartan Delta Corp. Logan has three high quality and opportunity rich Montney assets located in the Simonette and Pouce Coupe areas of northwest Alberta and the Flatrock area of northeastern British Columbia. Additionally, the Company has established a position within the greater Kaybob Duvernay oil play with assets in the North Simonette, Ante Creek and Two Creeks areas. The management team brings proven leadership and a track record of generating excess returns in various business cycles.

Logan's corporate presentation has been updated as of May 2026 and can be accessed on the Company's website at www.loganenergycorp.com . READER ADVISORIES Non-GAAP Measures and Ratios This press release contains certain financial measures and ratios which do not have standardized meanings prescribed by International Financial Reporting Standards as issued by the International Accounting Standards Board (" IFRS Accounting Standards "), also known as Canadian Generally Accepted Accounting Principles (" GAAP "). As these non-GAAP financial measures and ratios are commonly used in the oil and gas industry, Logan believes that their inclusion is useful to investors.

The reader is cautioned that these amounts may not be directly comparable to measures for other companies where similar terminology is used. The non-GAAP measures and ratios used in this press release, represented by the capitalized and defined terms outlined below, are used by Logan as key measures of financial performance and are not intended to represent operating profits nor should they be viewed as an alternative to cash provided by operating activities, net income or other measures of financial performance calculated in accordance with IFRS. The definitions below should be read in conjunction with the "Non-GAAP and Other Financial Measures" section of the Company's MD&A dated May 12, 2026, which includes discussion of the purpose and composition of the specified financial measures and detailed reconciliations to the most directly comparable GAAP financial measures.

Operating Income and Operating Netback Operating Income, a non-GAAP financial measure, is a useful supplemental measure that provides an indication of the Company's ability to generate cash from field operations, prior to administrative overhead, financing and other business expenses. " Operating Income, before hedging " is calculated by Logan as oil and gas sales, net of royalties, plus processing and other revenue, less operating and transportation expenses. " Operating Income, after hedging " is calculated by adjusting Operating Income, before hedging for realized gains or losses on derivative financial instruments.

The Company refers to Operating Income expressed per unit of production as an " Operating Netback " and reports the Operating Netback before and after hedging, both of which are non-GAAP financial ratios. Logan considers Operating Netback an important measure to evaluate its operational performance as it demonstrates its field level profitability relative to current commodity prices. Adjusted Funds Flow Cash provided by operating activities is the most directly comparable measure to Adjusted Funds Flow.

" Adjusted Funds Flow " is reconciled to cash provided by operating activities by excluding changes in non-cash working capital, adding back transaction costs on acquisitions (if applicable). Logan utilizes Adjusted Funds Flow as a key performance measure in the Company's annual financial forecasts and public guidance. The Company refers to Adjusted Funds Flow expressed per unit of production as an " Adjusted Funds Flow Netback ".

Adjusted Funds Flow per share (" AFF per share ") AFF per share is a non-GAAP financial ratio used by Logan as a key performance indicator. The basic and/or diluted weighted average common shares outstanding used in the calculation of AFF per share is calculated using the same methodology as net income per share. Capital Expenditures before A&D " Capital Expenditures before A&D " is used by Logan to measure its capital investment level compared to the Company's annual budgeted capital expenditures for its organic drilling program.

It includes capital expenditures on exploration and evaluation assets and property, plant and equipment, before acquisitions and dispositions. The directly comparable GAAP measure to capital expenditures is cash used in investing activities. Net Debt Throughout this press release, references to " Net Debt " includes bank debt, net of " Adjusted Working Capital ".

Net Debt and Adjusted Working Capital are both non-GAAP financial measures. Adjusted Working Capital is calculated as current assets less current liabilities, excluding derivative financial instrument assets and liabilities and provisions and other liabilities. As at March 31, 2026, Adjusted Working Capital includes cash and cash equivalents, accounts receivable, prepaids and deposits, and accounts payable and accrued liabilities.

Supplementary Financial Measures The supplementary financial measures used in this press release (primarily average sales price per product type and certain per BOE and per share figures) are either a per unit disclosure of a corresponding GAAP measure, or a component of a corresponding GAAP measure, presented in the financial statements. Supplementary financial measures that are disclosed on a per unit basis are calculated by dividing the aggregate GAAP measure (or component thereof) by the applicable unit for the period. Supplementary financial measures that are disclosed on a component basis of a corresponding GAAP measure are a granular representation of a financial statement line item and are determined in accordance with GAAP.

Other Measurements All dollar figures included herein are presented in Canadian dollars, unless otherwise noted. This press release contains various references to the abbreviation "BOE" which means barrels of oil equivalent. Where amounts are expressed on a BOE basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet (mcf) per barrel (bbl).

The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is significantly different than the value ratio based on the current price of crude oil and natural gas. This conversion factor is an industry accepted norm and is not based on either energy content or current prices.

Such abbreviation may be misleading, particularly if used in isolation. References to "oil" or "crude oil" in this press release include light crude oil, medium crude oil, heavy oil and tight oil combined. NI 51-101 includes condensate within the product type of "natural gas liquids".

References to "natural gas liquids" or "NGLs" include pentane, butane, propane and ethane. References to "gas" or "natural gas" relates to conventional natural gas. References to "liquids" includes crude oil, condensate and NGLs.

The Company has disclosed "condensate" separately from other natural gas liquids in this press release since the price of condensate as compared to other natural gas liquids is currently significantly higher and the Company believes that this presentation provides a more accurate description of its operations and results. References in this press release to peak rates, initial production (including IP30 and IP60), producing day rates and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of Logan.

IP60 production for the 6-18 Pad Upper Montney well of 778 BOE/d (17% liquids) is comprised of 3.9 MMcf/d of natural gas, 88 bbls/d of NGLs and 45 bbls/d of condensate. Share Capital Common shares of Logan trade on the TSX Venture Exchange (" TSXV ") under the symbol "LGN". As of March 31, 2026 and as of the date hereof, there are 691.6 million common shares outstanding.

There are no preferred shares or special shares outstanding. Logan's convertible securities outstanding as of the date of this press release include: 64.3 million common share purchase warrants with an exercise price of $0.35 per share expiring July 12, 2028; 6.8 million RSAs; and 42.7 million stock options with an exercise price of $0.78 per share and an average remaining term of 3.2 years. Forward-Looking and Cautionary Statements Certain statements contained within this press release constitute forward-looking statements within the meaning of applicable Canadian securities legislation.

All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "outlook", "anticipate", "budget", "plan", "endeavor", "continue", "estimate", "evaluate", "expect", "forecast", "monitor", "may", "will", "can", "able", "potential", "target", "intend", "consider", "focus", "identify", "use", "utilize", "manage", "maintain", "remain", "result", "cultivate", "could", "should", "believe" and similar expressions (or grammatical variations or negatives thereof). Logan believes that the expectations reflected in such forward-looking statements are reasonable as of the date hereof, but no assurance can be given that such expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.

Without limitation, this press release contains forward-looking statements pertaining to: the business plan, objectives and strategy of Logan; the Company's opportunity rich assets; production growth and liquids weighting; the ability to improve capital efficiencies, operating costs and netbacks; infrastructure benefits and value capture; the strategic importance and scarcity of Montney inventory; the success of the Company's 2026 drilling program based on initial results, including drilling and completion costs, the onstream timing of wells, expected production rates and the impact to economics of utilizing existing owned infrastructure; the success of the Company's growth plan including organic growth and opportunistic expansion of the Company's asset base through accretive acquisitions; management's expectations in respect of recently completed drilling operations; expectation of average production in excess of 18,000 BOE per day in the second half of 2026, facility construction and commissioning timing; the potential to expand capital budgets; commodity hedging and the expected appointment of Mr. Paton to Logan's Board of Directors. The forward-looking statements and information are based on certain key expectations and assumptions made by Logan, including, but not limited to, expectations and assumptions concerning the business plan of Logan, the timing and success of future drilling, development and completion activities and infrastructure projects, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the geological characteristics of Logan's properties, the successful integration of the recently acquired assets into Logan's operations (including pursuant to the Acquisition), the successful application of drilling, completion and seismic technology, the Company's ability to secure sufficient amounts of water, prevailing weather conditions, prevailing legislation affecting the oil and gas industry, prevailing commodity prices, price volatility, future commodity prices, price differentials and the actual prices received for the Company's products, anticipated fluctuations in foreign exchange and interest rates, impact of inflation on costs, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners, general economic conditions, and the ability to source and complete acquisitions. Although Logan believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Logan can give no assurance that they will prove to be correct.

By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, fluctuations and volatility in commodity prices (including pursuant to determinations by the Organization of Petroleum Exporting Countries and other countries (collectively referred to as OPEC+) regarding production levels), changes in industry regulations and legislation (including, but not limited to: tax laws, royalties, and environmental regulations), the imposition or expansion of tariffs imposed by domestic and foreign governments or the imposition of other restrictive trade measures, retaliatory or countermeasures implemented by such governments, including the introduction of regulatory barriers to trade and the potential material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and demand and/or market price for the Company's products and/or otherwise adversely affects the Company; changes in the political landscape both domestically and abroad, wars (including ongoing military actions in Iran, Lebanon and elsewhere in the Middle East and Russia's invasion of Ukraine), hostilities, civil insurrections, foreign exchange or interest rates, increased operating and capital costs due to inflationary pressures (actual and anticipated), risks associated with the oil and gas industry in general, stock market and financial system volatility, impacts of pandemics, the retention of key management and employees, risks with respect to unplanned third-party pipeline outages and risks relating to inclement weather and severe weather events and natural disasters, such as fire, drought, flooding and extreme hot or cold temperatures, including in respect of safety, asset integrity and shutting-in production. The foregoing list is not exhaustive.

Please refer to the MD&A and AIF for discussion of additional risk factors relating to Logan, which can be accessed on its SEDAR+ profile at www.sedarplus.ca . Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Logan undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

This press release contains future-oriented financial information and financial outlook information (collectively, " FOFI ") about Logan's prospective results of operations and production and growth, and components thereof, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Logan's proposed business activities for 2026. Logan and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action.

However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Logan disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.

Changes in forecast commodity prices, exchange rates, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the Company's key performance measures. The Company's actual results may differ materially from these estimates. Neither TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Abbreviations SOURCE Logan Energy Corp. For additional information, please contact: Richard F. McHardy, Chief Executive Officer; Brendan Paton, President and Chief Operating Officer, Logan Energy Corp., 900, 355 - 4th Avenue SW, Calgary, Alberta T2P 0J1, Email: [email protected] , https://www.loganenergycorp.com/ × Modal title