(via TheNewswire)

 August 25, 2026 | Calgary, Alberta - TheNewswire

Net income of $568,279, funds from operations up more than nine-fold, and net debt reduced by approximately $0.8 million.

WesCan Energy Corp. (“WesCan” or the “Company”) (TSXV: WCE) today announced its financial and operating results for the first quarter of fiscal 2027, the three months ended June 30, 2026. Building on the transformational fiscal 2026 year, a full quarter of production from the Company’s Provost multilateral horizontal well drove a return to profitability, a near-tripling of revenue, materially higher funds from operations and a meaningful reduction in net debt.

First Quarter Highlights (three months ended June 30, 2026)

(1) Non-GAAP financial measure or ratio; see “Non-GAAP and Other Financial Measures.”

Highlights

• Returned to profitability with net income of $568,279 (Q1 2026 – net loss of $151,015). 

• Petroleum and natural gas revenue increased 197% to $2,003,238 (Q1 2026 – $674,605), reflecting higher production from the Provost well and stronger realized commodity prices. 

• Average production increased 69% to 209 boe/d (Q1 2026 – 124 boe/d). 

• Operating netback expanded 230% to $56.36/boe (Q1 2026 – $17.06/boe). 

• Funds from operations increased more than nine-fold to $962,351 (Q1 2026 – $104,800), and cash provided by operating activities increased to $695,749 (Q1 2026 – $201,966). 

• Net debt was reduced by approximately $0.8 million to approximately $2.1 million, and the working capital deficiency improved to $829,637 (March 31, 2026 – $1,341,723). 

• Cash increased to $457,895 at June 30, 2026 (March 31, 2026 – $88,452), and the Company repaid $331,142 of notes payable during the quarter. 

Management Commentary

“The first quarter demonstrates the earnings power of the play we established at Provost,” said Leo Berezan, Chief Executive Officer and Chairman of WesCan. “In a single quarter we returned to profitability, nearly tripled our revenue and began to strengthen the balance sheet through debt repayment. This is the platform we intend to build on as we advance our de-risked development inventory.”

“A full quarter of production from our Provost multilateral transformed our results,” said Sarshar Ahmad, Chief Operating Officer and Director of WesCan. “Production rose 69%, our operating netback expanded to $56.36 per barrel of oil equivalent, and funds from operations increased more than nine-fold. With this momentum and a stronger cash position, we are preparing our next phase of development at Provost.”

Operational and Financial Review

During the first quarter of fiscal 2027, the Company’s Provost 15-27-38-3 multilateral horizontal oil well contributed a full quarter of production, lifting average production 69% to 209 boe/d (Q1 2026 – 124 boe/d), with production remaining oil-weighted. Petroleum and natural gas revenue increased 197% to $2,003,238, and revenue net of royalties increased to $1,679,908 (Q1 2026 – $594,495).

Operating costs were $607,945, or $32.00/boe, a decrease of 11% on a per-boe basis (Q1 2026 – $36.00/boe). Operating netback expanded 230% to $56.36/boe. The Company recorded net income of $568,279 (Q1 2026 – net loss of $151,015) and funds from operations of $962,351 (Q1 2026 – $104,800).

The Company used its improved cash flow to strengthen its balance sheet, repaying $331,142 of notes payable during the quarter, reducing total notes payable to $2,724,506 (March 31, 2026 – $3,018,538) and net debt to approximately $2.1 million (March 31, 2026 – approximately $3.0 million). The working capital deficiency improved to $829,637 (March 31, 2026 – $1,341,723) and cash increased to $457,895. The Company’s financial statements continue to include a going-concern note, and additional financing is expected to be required to fund future development. WesCan had no commodity hedges in place during or at the end of the quarter.

Outlook

WesCan intends to advance its de-risked development inventory at Provost, supported by its 3D seismic trade license and additional acreage. As part of its 2026 drill program, the Company plans to drill one multilateral horizontal well at Provost, targeting September 2026, subject to receipt of regulatory approvals and the availability of a drilling rig currently active in the area. The Company is planning a second development well to follow, anticipated in late 2026 or early 2027. Beyond this program, Management has identified potential follow-up development locations on the Company’s Provost acreage, which remain subject to further technical evaluation, regulatory approval and available financing. WesCan will continue to prioritize field-level cost control and strengthening its financial position, while remaining disciplined on capital allocation.

Non-GAAP and Other Financial Measures

This news release refers to certain measures that are not determined in accordance with IFRS, including “funds from operations,” “operating netback,” “operating costs (per boe),” “average production (per boe/d)” and “net debt.” These measures do not have standardized meanings prescribed by IFRS and may not be comparable to similar measures presented by other issuers. Funds from operations is calculated as cash flow from operating activities before changes in non-cash working capital and expenditures on decommissioning obligations. Operating netback is calculated as petroleum and natural gas revenue less royalties and operating costs, expressed per boe. Net debt is calculated as notes payable plus trade and other payables, less current assets. Management uses these measures to evaluate operating performance and liquidity. Reconciliations to the most directly comparable IFRS measures are provided in the Company’s MD&A for the three months ended June 30, 2026, available on SEDAR+ at www.sedarplus.ca.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws, including statements regarding the Company’s planned drilling program at Provost (including the planned multilateral horizontal well, a second development well and the anticipated timing thereof), potential follow-up development locations, the expected benefits of the 3D seismic license and additional acreage, anticipated production, cost and netback levels, financing plans and the Company’s ability to continue as a going concern. Forward-looking statements are based on assumptions and are subject to known and unknown risks and uncertainties — including commodity price volatility, production and reserve risk, access to capital, the timing of regulatory approvals, drilling rig availability and scheduling, and the risks disclosed in the Company’s filings — that may cause actual results to differ materially. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update them except as required by law.

Oil and Gas Advisories

Barrels of oil equivalent (boe) are derived by converting natural gas to oil at a ratio of six thousand cubic feet of gas to one barrel of oil (6 Mcf : 1 bbl). A boe conversion ratio of 6 Mcf : 1 bbl is based on an energy-equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead; utilizing a conversion ratio of 6:1 may be misleading as an indication of value. References to production rates are for the periods indicated and are not necessarily indicative of long-term performance or of ultimate recovery. Any potential follow-up development locations referred to herein are unbooked locations identified by Management based on internal and third-party evaluation; unbooked locations are speculative, do not have attributed reserves, and there is no certainty that the Company will drill them or that they will result in commercial production. Reserves and oil and gas information are presented in accordance with National Instrument 51-101.

TSX Venture Exchange

Neither the 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 release.

For further information

WesCan Energy Corp.  |  1900, 350 – 7 th Ave SW, Calgary, Alberta. T2P 3N9

Leo Berezan, Chief Executive Officer and Chairman

Telephone: +1-604-240-3064   |   Email: leo@berezan.ca

Sarshar Ahmad, Chief Operating Officer and Director

Telephone: +1-403-816-4037   |   Email: sahmed@wescanenergycorp.com

Company filings are available on SEDAR+ at www.sedarplus.ca.

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