Mr. Paul Clarke reports

CANCAMBRIA ENERGY KICKS OFF SHALLOW OIL APPRAISAL PROGRAM WITH 3D SEISMIC ACQUISITION AGREEMENT; FIELDWORK SCHEDULED TO BEGIN NOVEMBER 2026

Cancambria Energy Corp. has awarded the contract for its proprietary Soltvadkert/Tazlar/Alpar (STA) shallow oil 3-D seismic survey to Acoustic Geophysical Services Ltd. (AGS) of Hungary. Under the terms of the agreement, AGS is scheduled to commence field operations on Nov. 1, 2026, with field acquisition expected to be completed by mid-December, 2026. Land permitting is currently under way.

The STA program will evaluate shallow oil prospects within Cancambria's 100-per-cent-owned Kiskunhalas concession. The total cost of the program, including seismic acquisition and processing, is expected to be approximately $2.6-million (U.S.).

Cancambria previously worked with AGS on its 2023 to 2024 Balotaszallas deep-gas 3-D seismic acquisition program. That program delivered high-quality seismic data, supported by a strong safety record and minimal surface disturbance. The new STA survey, located approximately 15 kilometres north of the previous survey area, will cover approximately 2.5 times the area of the company's 2023 to 2024 3-D seismic program.

Dr. Paul R. Clarke, president, chief executive officer and interim chairman of the board, commented: "Awarding the STA 3-D seismic acquisition contract advances our shallow oil strategy in Hungary. Building on our successful experience with AGS, this program will provide a modern 3-D seismic data set to evaluate and rank our 10 identified oil prospects. Our aim is to bring the strongest prospects to drill-ready status and support exploration drilling in 2027."

The 53,000-acre (215-square-kilometre) STA survey encompasses ten prospects identified from legacy seismic data. The broader STA oil fairway is supported by neighbouring analog fields that have collectively produced over 160 million barrels of oil equivalent (MMBOE), underscoring the region's resource potential. The area offers significant value creation potential, with each oil prospect targeting mean prospective net revenue of up to $567-million (U.S.), net of royalties and taxes, providing exposure to a multibillion-dollar resource value.

Several seismic bright spots and flat spots have been interpreted as potential indicators of hydrocarbon accumulations. The new 3-D survey will also cover a historically productive field, enabling calibration of seismic responses against known producing areas and well-log data.

The state-of-the-art, high-resolution, full-azimuth 3-D seismic survey will utilize wireless nodal technology and is expected to achieve a maximum fold of 224, with approximately 20,000 source points and 27,000 receiver nodes. The 20 m by 20 m bin spacing is designed to support imaging of the shallow oil objectives.

The exploration workflow is consistent with approaches successfully employed across the broader Pannonian basin by companies including Vermilion Energy, MOL Group and Aspect Energy. It will evaluate potential direct hydrocarbon indicators alongside mapped structural traps. Where these seismic responses conform to trap geometry, confidence in prospect interpretation can be enhanced.

Following completion of the initial prestack time migration, advanced seismic processing is planned, including full waveform inversion, to improve imaging and support the characterization of subsurface elastic properties.

About Cancambria Energy Corp.

Cancambria Energy is a Canadian-based exploration and production company specializing in tight gas development. With a globally experienced leadership team, Cancambria focuses on high-quality, derisked projects with direct access to profitable markets. Leveraging the industry's most advanced technologies, the company aims to commercialize its flagship asset, the 100-per-cent-owned Kiskunhalas project in southern Hungary, a significant gas-condensate resource in the heart of Europe.

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