Westgate Energy reports Q1 2026 financial results

Canada NewsWire CALGARY, AB , May 29, 2026 /CNW/ - Westgate Energy Inc. (" Westgate " or the " Company ") (TSXV: WGT), is pleased to announce the filing of its unaudited financial and operating results for the three months ended March 31, 2026. The selected financial and operating information provided below should be read in conjunction with Westgate's unaudited consolidated financial statements and related management's discussion and analysis (" MD&A ") for the three months ended March 31, 2026 and 2025, which are available on SEDAR+ at www.sedarplus.ca  and on Westgate's website at www.westgateenergy.ca . Financial & Operating Results Summary Q1 2026 ("Q1/26") Highlights Production in Q1 2026 averaged 640 boe/d compared to 259 boe/d in the same period of 2025, representing a 147% increase.

March average production reached 683 boe/d with an oil weighting of 87%. The Company commissioned a new tank treating facility on the existing Beaverdam asset pad site in March 2026, which is expected to lower sand handling costs and increase production through incremental recoveries. The Company acquired a nearby natural gas well adjacent to its Beaverdam pad site.

The well has since been recompleted and flow tested, with results indicating sufficient productive capacity to offset all propane fuel requirements associated with operations at the pad site. Tie-in of the well and commissioning of the fuel gas system are anticipated in Q3 2026. Drilling and Operations Update Westgate has commenced its previously announced four-well horizontal drilling program on its Beaverdam property near Cold Lake, Alberta.

All four wells are targeting the Colony Formation and represent follow-up development to Westgate's most recent successful Colony well drilled in late 2025 ("C2S"). As of the date of this release, the first well of the program ("C3S") has been successfully drilled to TD. Management notes that reservoir quality and oil shows encountered in C3S appear highly comparable to those observed in C2S.

The second well of the program ("C4S") is expected to spud in the coming days. All four wells in the current drilling program are being drilled as direct offsets to the successful C2S well from a common pad location, providing both operational efficiencies and geological synergies. C2S achieved a peak 30-day production rate of ~180 bbl/d in March 2026.

Drilling operations are expected to continue uninterrupted through June, followed by completion and tie-in operations, with all four wells expected to be on production by late July 2026. About Westgate Westgate is focused on the emerging Mannville Stack fairway located in North-East Alberta and West Central Saskatchewan, a region with established medium and heavy oil accumulations. Producers in this fairway are increasingly unlocking these reservoirs with modern horizontal drilling and completion techniques, which have materially improved well performance and capital efficiencies.

Activity to date has delivered some of the strongest oil well economics in Western Canada. For more information, please visit www.westgateenergy.ca . Reader Advisories In this press release, all references to "$" are to Canadian dollars.

Forward-Looking Information This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this press release contains forward-looking statements and information relating to the Company's drilling and capital expenditure programs and the timing thereof; the performance characteristics of the Company's oil and natural gas properties; potential cost savings from replacing current propane fuel gas use on the Beaverdam lease; the Company's objective and growth strategy; and oil, NGLs and natural gas production levels.

The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to the ability of management to successfully implement and execute its business plan, prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the timing and success of its future drilling plans and its ability to identify new drilling locations, the anticipated benefits of its relationships with the applicable Metis Settlements, the ability of the Company to integrate its current and proposed assets, drilling and production potential from its current and proposed assets and the Mannville Stack more generally, the availability of capital to undertake planned activities, the Company's ability to generate sufficient cash flow to meet its current and future obligations, assumptions regarding the ability to use multilateral horizontal drilling, including its expected decreased capital expenses and increased production benefits, the availability and cost of labour and services and the receipt of all necessary approvals. Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties.

Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure of management to successfully implement its business plan and/or the failure of such initiatives to yield the expected benefits and results, the failure of the Company to successfully implement its future drilling plans and identify new drilling locations, the accuracy of analogous information, the failure to realize the anticipated benefits of the Company's relationships with applicable Metis Settlements, the failure of the Company to successfully integrate its current and proposed assets and other risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tariff, tax, royalty and environmental legislation. Further important factors affecting forward-looking statements and management's assumptions and analysis thereof is available in filings made by the Company with Canadian provincial securities commissions available on SEDAR+ at www.sedarplus.ca .

The forward-looking statements and information contained in this press release are made as of the date hereof for the purpose of providing the readers with the Company's expectations. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Oil and Gas Advisories Barrels of Oil Equivalent Boe may be misleading, particularly if used in isolation. In accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities, a conversion ratio for conventional natural gas of 6 Mcf:1 bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, utilizing a conversion on a 6 Mcf:1 bbl basis may be misleading as an indicator of value as the value ratio between conventional natural gas and heavy crude oil, based on the current prices of natural gas and crude oil, differ significantly from the energy equivalency of 6 Mcf:1 bbl.

Initial Production Rates Initial production rates disclosed herein, particularly those short in duration, may not necessarily be indicative of long-term performance or of ultimate recovery. Readers are cautioned that short-term rates should not be relied upon as indicators of future performance of these wells and therefore should not be unduly relied upon for investment or other purposes. All initial production rates presented herein represent the results from wells after all "load" fluids (used in well completion) have been recovered.

The Company cautions that the results should be considered preliminary. Advisories and Other Guidance Non-GAAP Financial Measures and Ratios This press release contains non-GAAP financial measures, non-GAAP ratios and supplementary financial measures, including operating income (loss), operating netback, total revenue, realized price, and royalties as a percentage of revenue which are not recognized measures under GAAP. Management believes these measures are useful for reporting purposes and for evaluating the consolidated financial position of the Company but cautions readers that these measures should not be considered as alternatives to measures calculated in accordance with GAAP.

Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers for these non-GAAP financial measures. Operating Income (Loss) Operating income (loss) is a non-GAAP financial measure calculated by subtracting the cost of royalties and operating expenses from total revenue. Operating income (loss) is a component of operating netback, a non-GAAP ratio that management believes is a key industry benchmark and a measure of performance of the Company that provides investors/readers with information that is commonly used by other petroleum and natural gas producers.

For a reconciliation of operating income (loss) to revenue, the most directly comparable GAAP measure, see the table under the heading "Financial & Operating Results Summary" within this press release. Operating Netback Operating Netback is a non-GAAP financial ratio calculated by dividing operating income (loss) by production volumes. Operating Netback allows management and others to evaluate the production results from the Company's assets.

Management feels that operating netback is a key industry benchmark and a measure of performance of the Company that provides investors/readers with information that is commonly used by other petroleum and natural gas producers. Total Revenue Total revenue is a non-GAAP financial measure calculated by adding processing revenue to petroleum, natural gas and NGL sales. Management uses total revenue to evaluate the cash flow generated from the Company's assets and believes it is useful to investors as a key industry benchmark and a measure of performance of the Company that provides investors/readers with information that is commonly used by other petroleum and natural gas producers.

For a reconciliation of petroleum, natural gas and NGL sales, the most directly comparable GAAP measure, see the table under the heading "Financial & Operating Results Summary" within this press release. Realized Price Realized price is a supplementary financial measure calculated as the revenue by product divided by the production by product and is a key industry benchmark and a measure of performance of the Company that provides investors/readers with information that is commonly used by other petroleum and natural gas producers. Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Westgate Energy Inc. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2026/29/c8991.html Canada Newswire May 29, 2026 - 2:00 PM PDT News by QuoteMedia www.quotemedia.com