WESTGATE ENERGY PROVIDES OPERATIONAL UPDATE

CALGARY, AB, Jan. 22, 2026 /CNW/ - Westgate Energy Inc. ("Westgate", the "Company", "we" or "our") (TSXV: WGT), is pleased to provide an operational update following the initial startup of its three recently drilled Mannville Stack oil wells in the Beaverdam area of Alberta.

Fall 2025 Drilling Program Results

The Company successfully brought its latest three horizontal wells at the Beaverdam asset on production in mid to late December 2025. Current combined production from the three new wells is approximately 330 bbl/d over a 7-day period. The wells were initially brought on stream at conservative pump rates to allow for a gradual clean up phase. This operating approach is intended to reduce downhole equipment wear associated with sand production. As the clean up phase progresses, the Company expects production rates to continue to improve as pumping rates are gradually increased from their current rates. Ongoing well optimization, together with the completion of the new holding tank facility, described below, is anticipated to further increase production over the coming weeks. 

In addition to the producing horizontal wells, the Company also drilled two vertical stratigraphic test wells in the fall program. These two vertical wells were designed to provide information about various prospective Mannville Stack horizons within the Company's existing land holdings at Beaverdam. These tests resulted in refined geological mapping that has confirmed future drilling inventory in some zones, as well as helped define potential pool boundaries in other prospective zones. The results of this geological refinement and related multi-zone horizontal location estimate are highlighted in an updated corporate presentation that can be found on the Company's website. 

New Tank Facility

The Company is currently constructing a new holding tank facility on the existing Beaverdam pad site. This facility is designed to improve operating efficiency by increasing oil recoveries from produced sand and emulsion volumes while also reducing third party handling and disposal costs. Upon completion, the new facility is expected to provide incremental production of greater than 30 bbl/d from the existing six wells, increasing operating netbacks¹ by greater than $5/bbl. The capacity of the new facility is designed to service up to 25 wells which are expected to also benefit from the higher netbacks in the future. 

Management Commentary and Future Drilling

We are pleased with the overall results delivered by our second three-well program at Beaverdam. We expect the modified initial pumping rates to be beneficial for run times of the new wells. This operational refinement is expected to help guide our future drilling and completion strategies at Beaverdam in 2026 and beyond. Westgate looks forward to building on its operational performance while continuing to pursue cost efficiencies as we advance into 2026. The Company is currently in the well planning phase for its next drilling program and intends to drill an additional nine horizontal wells at Beaverdam during the remainder of 2026, based on an anticipated WTI oil price of US$60 to US$65/bbl. This program is expected to increase the total producing well count at Beaverdam to 15 by year-end 2026. Subject to weather conditions and spring breakup timing, the next drilling program is expected to commence in late May or early June 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 efficiency. 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 unless otherwise indicated. 

Reader Advisories

Non-GAAP Ratio

This press release contains the non-GAAP ratio operating netback, which is not a recognized measure under GAAP. Management believes this measure is 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 IFRS. 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 netback is a non-GAAP 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.

Oil and Gas Advisories

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 test results should be considered preliminary.

Notice regarding forward-looking statements:

This press release includes forward-looking statements regarding Westgate and its business, which may include, but are not limited to: the construction of the new tank facility and the expected benefit therefrom, the expected timing that the new wells will be on production, the use of data from the stratigraphic test wells in relation to the Company's 2026 drilling program, the Company's focus on building on its operational performance and cost efficiencies, anticipated production from wells, anticipated WTI oil price, the number and timing of additional wells and the characteristics of the Mannville Stack Fairway and the unique position of Westgate in respect thereof. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. The forward-looking statements included in this press release are based on management's current expectations and assumptions, including, but not limited to, the successful construction of facilities at the new well locations, the expected timing that the new wells will be on production and the Company's ability to execute its business strategy and market conditions. Although the Company believes that the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect. Forward-looking statements involve significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to, an increase in the time to construct facilities at the new well locations and bring such wells on to production, production from wells being less than anticipated, decreases in the price of oil and natural gas and changes in market conditions. Moreover, exploration, appraisal, and development of oil and natural gas reserves are speculative activities and involve a degree of risk. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, other than as required by law.

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.

Abbreviations

SOURCE Westgate Energy Inc.

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