Mr. Dan Brown reports

WESTGATE ENERGY PROVIDES OPERATIONAL UPDATE

Westgate Energy Inc. has provided an operational update following the initial start-up 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 barrels per day over a seven-day period. The wells were initially brought on stream at conservative pump rates to allow for a gradual cleanup phase. This operating approach is intended to reduce downhole equipment wear associated with sand production. As the cleanup phase progresses, the company expects production rates to continue to improve as pumping rates are gradually increased from their current rates. Continuing 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 landholdings 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 multizone 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 barrels per day from the existing six wells, increasing operating netbacks by greater than $5 per barrel. 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

The company is pleased with the overall results delivered by its second three-well program at Beaverdam. The company expects the modified initial pumping rates to be beneficial for run times of the new wells. This operational refinement is expected to help guide the company's 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 the company advances 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 (West Texas Intermediate) oil price of $60 (U.S.) to $65 (U.S.) per barrel. 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 Energy Inc.

Westgate is focused on the emerging Mannville Stack fairway located in northeastern 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.

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