Dr. Paul Clarke reports

CANCAMBRIA ENERGY PROVIDES AN UPDATE ON ITS SHALLOW HIGH-IMPACT OIL PLAY IN SOUTHERN HUNGARY, HIGHLIGHTING NEARBY PRODUCING OIL FIELDS, INCREASING INDUSTRY ACTIVITY AND TEN IDENTIFIED OIL FIELD TARGETS

Cancambria Energy Corp. has provided a technical and commercial update for the Soltvadkert/Tazlar/Alpar shallow oil fairway, highlighting continued advancement of the project and outlining key milestones expected to drive value creation going forward. Among these is the company's plan to acquire its own 3-D seismic survey over the STA fairway, with acquisition currently targeted for late second half 2026, subject to customary regulatory approvals.

Key highlights:

• Emerging shallow oil opportunity within Cancambria's 100-per-cent-owned Kiskunhalas concession area complements the company's flagship deep tight gas project;
• 10 oil field prospects identified across an 80,000-acre fairway where adjacent oil fields have collectively produced approximately 160 million barrels of oil equivalent;
• Area analogues indicate a target mean oil field size of approximately 15 MMboe;
• Oil prospect targets mean prospective net revenue of up to $567-million (U.S.) (net of royalties and taxes), providing exposure to a multibillion-dollar resource potentiall
• 3-D seismic program planned in second half 2026 to refine final predrill prospect definition and advance evaluation of the low-cost, fast-cycle development opportunities, leveraging existing infrastructure;
• Further strengthens the company's existing portfolio, which includes a strategic $1.76-billion (U.S.) net present value discounted at 10 per cent, risked, development pending, contingent tight gas resource.

The company has identified a prospective trend across the STA fairway, where substantial undeveloped potential has been recognized for both conventional and unconventional hydrocarbon accumulations. The STA fairway is supported by neighbouring analogue fields that have collectively produced over 160 million barrels of oil equivalent underscoring the region's significant resource potential. While the STA fairway is not currently covered by 3-D seismic data, the company has identified 10 leads and prospects based upon 1980s vintage 2-D seismic and continues to advance the technical evaluation of these opportunities. The company estimates a potential mean revenue value for the identified shallow oil opportunities of up to $567-million (U.S.) (after royalty and tax).

Dr. Paul Clarke, president and chief executive officer, commented: "We are delighted to have the opportunity to further evaluate this large, underexplored yet proven petroleum system. We believe significant value can be unlocked for our shareholders through the application of modern 3-D seismic technologies and is consistent with our business model of low-cost entry and capital-efficient prospecting. This new proprietary seismic will derisk our existing inventory of prospects and help to identify further opportunities across the trend."

Legacy activity underpins the basin's potential

The STA fairway encompasses the northern portion of the company's extensive, contiguous 100-per-cent-owned Kiskunhalas concession area, covering approximately 320 square kilometres (80,000 acres) -- nearly three times the size of the adjacent BA-IX mining licence, where Cancambria is advancing appraisal activities on its tight gas resource.

Of particular interest is the established conventional and unconventional oil and gas production from multiple shallow reservoirs at depths of fewer than 2,000 metres. Nearby fields within this proven hydrocarbon system have collectively produced approximately 160 MMboe demonstrating the region's productive capacity.

Many of these fields were originally discovered using gravity and magnetic surveys, supplemented by limited 2-D seismic data, and were developed during the 1970s and 1980s using vertical drilling techniques. As a result, historical recovery factors are believed to be materially below those achievable with modern exploration, drilling, completion and reservoir management technologies, highlighting the potential for additional resource development across the STA fairway.

Recent activity by MOL Group continues to highlight the renewed industry interest in the STA fairway, with MOL deploying advanced, seismic-driven exploration workflows and acquiring several new 3-D seismic surveys. Most notably, MOL completed the Bocsa 3-D seismic survey in January, 2026, within its Kiskoros concession, immediately north of the KCA.

Building on this momentum, Cancambria is advancing plans to acquire its own 3-D seismic survey over the STA fairway, with acquisition currently targeted for second half 2026, subject to customary regulatory approvals. The survey is expected to significantly enhance subsurface imaging, support prospect maturation, and further refine future exploration and development opportunities across the STA fairway.

Dr. Clarke continued: "A proprietary state-of-the-art 3-D seismic program is being planned for second half 2026 and is expected to delineate multiple high-impact drilling locations across the STA fairway. We see considerable upside through the application of modern horizontal drilling and completion techniques, and believe these technologies have the potential to improve operational efficiency, increase recovery factors and enhance project economics. Collectively, the Cancambria team has drilled and completed several hundred horizontal wells across multiple basins over the past two decades, providing valuable expertise that can be applied to the development of this opportunity."

The company expects to provide a prospective resource disclosure, prepared by qualified persons, as a National Instrument 51-101 (Standards of Disclosure for Oil and Gas Activities) report associated with these exploration targets once the new 3-D seismic volumes are available and the number, size and risk of these opportunities have been defined.

Shallow oil technical and commercial overview: STA fairway

Strategic land position:

• 100-per-cent working interest in the KCA, encompassing approximately 233,000 acres in southern Hungary;
• Focused evaluation area of approximately 80,000 acres within the STA fairway targeting shallow, oil-weighted exploration opportunities;
• Located within a proven hydrocarbon fairway adjacent to multiple producing oil and gas fields and established production infrastructure;
• Continued industry activity in the basin, including recent 3-D seismic acquisition programs by offset operators;
• Considerable interest in the region during the eighth concession round that Cancambria won.

Proven petroleum system:

• More than 400 wells drilled across the KCA, supporting cumulative production of approximately 160 MMboe from over 15 fields;
• Mean (Swanson) field size of 15 MMboe production from existing activity;
• Historic production established from multiple reservoir intervals ranging from Pannonian to Triassic age;
• Early discoveries utilizing gravity and magnetic surveys yielded approximately 100 MMboe, while subsequent 2-D seismic programs contributed an additional approximately 60 MMboe through new discoveries and field extensions;
• Produced oils range from 22-degree to 40-degree API gravity;
• Limited exploration activity since the 1990s, with no modern 3-D seismic coverage and minimal application of contemporary drilling and completion technologies;
• Updip shallow gas (including biogenic gas window) is demonstrated from a small number of wells, not valued here by the company, but will be covered by the new 3-D.

Technical highlights:

• 10 identified prospects and leads interpreted from legacy 2-D seismic and well control data;
• Multiple conventional and unconventional targets, including Pannonian and Neogene sandstones, Cretaceous carbonates, and fractured basement reservoirs;
• Structural and stratigraphic trapping mechanisms identified across prospect areas ranging from approximately 200 to 2,000 acres;
• Several prospects exhibit direct hydrocarbon indicators, providing additional exploration confidence;
• Potential application of modern horizontal drilling and completion technologies across selected unconventional targets.

Development potential:

• Planned proprietary 3-D seismic acquisition targeted for second half 2026 to refine prospect mapping and optimize future drilling locations;
• Initial drilling anticipated in first half 2027 following seismic acquisition, interpretation and prospect maturation;
• Fast-cycle development opportunities with anticipated drill-to-production timelines of approximately one month (target depths range from 1,400 to 2,000 metres);
• Well count from existing portfolio of prospects is up to 50 locations (vertical);
• Development activities expected to proceed in parallel with the company's deep tight gas appraisal program.

Economics and scalability:

• Attractive well economics supported by premium European oil and natural gas pricing;
• Low-cost, vertical oil well cost ranges from $2.75-million to $3.75-million, considerably cheaper than drilling for deep gas targets;
• Light oil project with per-well internal rate of return exceeding the corporate 40-per-cent (ATAX) benchmark, with a payout of fewer than 12 months, at $70 oil ($3.75-million (U.S.) well costs) -- excluding seismic costs;
• Estimated unrisked project break-even of approximately $34 (U.S.) oil;
• Diversified inventory of 10 oil field targets/prospects supports a repeatable, scalable development model and flexible capital allocation over time, with mean targeted field sizes of 15 MMboe per prospect with an upside case of up to 25 MMboe from area analogues;
• Horizontal drilling applications are expected to further enhance development economics, increasing recovery factors and overall project returns for a relatively small increase in per-well capital costs.

About Cancambria Energy Corp.

Cancambria Energy Corp. 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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