WesCan Energy Corp. (“WesCan” or the “Company”) (TSXV: WCE) today announced its financial and operating results for the year ended March 31, 2026, highlighting a pivotal turnaround driven by a multilateral horizontal oil well at Provost, Alberta. The well materially increased production, expanded operating netbacks by 50% to $25.89/boe, reduced operating costs per barrel by 36% to $31.56/boe, and more than doubled adjusted funds flow to $1,231,177, a 134% increase from the prior year. The improvement followed a challenging fiscal 2025 and was delivered through a focused, single-year capital program.
Fourth-quarter production increased 61% to 212 boe/d, and full-year production rose 17% to 172 boe/d, with production remaining approximately 87% weighted to oil and liquids. Operating netback expanded 50% to $25.89/boe for the year and 270% to $32.61/boe in the fourth quarter, achieved despite a 14% decline in benchmark WTI prices. Operating costs decreased 25% to $1,980,529, and 36% on a per-boe basis to $31.56/boe. Adjusted funds flow increased 134% to $1,231,177, and cash flow from operating activities increased 81% to $1,064,053. Net loss narrowed 43% to $452,649, continuing to reflect non-cash depletion, depreciation and accretion of $1,282,386. Proved developed producing reserves increased to 264.8 MBOE, approximately 107% replacement of the year's production, as the new well converted approximately 108 MBOE from proved undeveloped to producing.
“Fiscal 2026 was the year WesCan turned the corner,” said Leo Berezan, Chief Executive Officer and Chairman. “We proved up a repeatable, oil-weighted development play at Provost, more than doubled our adjusted funds flow, and converted booked undeveloped reserves into production - all from a single, disciplined capital program. That is the foundation we intend to build on, and our focus now is on advancing our de-risked inventory while continuing to strengthen the Company’s financial position.”
“The Provost multilateral changed the trajectory of our operations,” said Sarshar Ahmed, Chief Operating Officer and Director. “It lifted fourth-quarter production 61%, cut our operating cost per barrel by more than a third, and expanded our operating netback by 50% even as oil prices weakened. With our newly acquired 3D seismic and expanded land position, we move into fiscal 2027 with a program built around one multilateral horizontal well and one well re-entry, and potential follow-up development locations behind it.”
During fiscal 2026, WesCan drilled and brought on production a multilateral horizontal oil well at Provost, Alberta (WesCan 104 Provost 15-27-38-3), in the Company’s 100% operated, oil-weighted core area. The well has recently produced at approximately 90 bbl/d of oil and represented a substantial share of fourth-quarter volumes. The Company’s crude at Provost is approximately 29° API medium-gravity oil, trucked to market to capture WTI-based pricing. The well converted approximately 108 MBOE from proved undeveloped to proved developed producing, confirming the productivity of the multilateral horizontal development concept. WesCan also acquired a 3D seismic trade license to further evaluate the play and an additional half section (approximately 320 acres) of acreage.
Petroleum and natural gas revenue increased 5% to $4,232,059 as a 17% increase in production more than offset a 14% decline in benchmark WTI prices. Royalties were $626,678, or 14.8% of revenue, reflecting a production-mix shift toward freehold lands at Provost. Operating costs decreased 25% to $1,980,529 and fell 36% per boe to $31.56/boe, driven by fixed-cost absorption from higher volumes and the non-recurrence of a one-time fiscal 2025 workover program. Operating netback expanded 50% to $25.89/boe. Adjusted funds flow increased 134% to $1,231,177, and cash flow from operating activities increased 81% to $1,064,053. The Company recorded a net loss of $452,649, which continued to reflect non-cash depletion, depreciation and accretion of $1,282,386.
WesCan invested $1,696,563 in the Provost program during the year. As the program exceeded adjusted funds flow, net debt increased to approximately $3.0 million at March 31, 2026, and the working capital deficiency was $1,341,723. The financial statements include a going-concern note, and the Company expects to require additional financing to fund future development. WesCan had no commodity hedges in place during or at the end of the year.
The Company’s reserves were independently evaluated by McDaniel & Associates Consultants Ltd. effective March 31, 2026, using forecast prices and costs. Proved developed producing reserves increased to 264.8 MBOE, approximately 107% of the year’s production, as the Provost well converted approximately 108 MBOE from proved undeveloped to producing. Total proved reserves were 396.8 MBOE, and proved plus probable reserves were 497.5 MBOE; on a total basis reserves declined modestly as annual production exceeded new bookings. Reserves are reported in accordance with NI 51-101.
For fiscal 2027, the Company’s planned program at Provost comprises one multilateral horizontal well and one well re-entry, both targeting the same oil-weighted reservoirs de-risked by the fiscal 2026 well. The re-entry is expected to utilize existing wellbore infrastructure. Beyond this program, Management has identified potential follow-up development locations on the Company’s Provost acreage, which it continues to evaluate with the benefit of its newly acquired 3D seismic and which remain subject to further technical evaluation, regulatory approval and available financing. WesCan will continue to prioritize field-level cost control, the re-activation of shut-in wells, and strengthening its financial position, while remaining disciplined on capital allocation given commodity-price and financing conditions.
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws, including statements regarding the Company’s fiscal 2027 program, potential follow-up development locations, expected benefits of the 3D seismic license and additional acreage, anticipated production, cost and netback levels, reserve estimates and conversion, 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, regulatory approvals, 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. For further information, the Company's filings are available on SEDAR+ at www.sedarplus.ca.
