Mr. Francisco Gulisano reports

BGX PROVIDES OPERATIONAL UPDATE OF ITS OIL AND GAS PROJECTS

Black Gold Exploration Corp. has provided an operational update on its Fritz 2-30 well in Clay county, Indiana, and its El Carmen property in Argentina.

Fritz well production update

Further to the company's news release dated June 4, 2025, Fritz 2-30 well commenced initial production. The ground team continues to advance plans to bring the Fritz 2-30 well into maximum production at the Fritz field, supported by continuing well performance evaluation and completion of key production infrastructure.

The Fritz field, located in southwestern Indiana, represents a significant oil and natural gas discovery within a 210-acre area of mutual interest with LGX Energy. As also stated in earlier press releases, the Fritz 2-30 well contains oil and gas reserves in the Jeffersonville formation, with additional oil potential from the Geneva formation.

Additional prospective formations in the field include the North Vernon and Carper Sand intervals. Three-dimensional seismic analysis has identified multiple additional drilling locations across the structure with potential for several oil and gas pay zones.

Highlights:

• Fritz 2-30 well confirmed to contain oil, water and strong natural gas flow during initial production;
• Well open to both the Jeffersonville and Geneva formations;
• Electric submersible pump (ESP) planned to enable controlled oil production;
• Field infrastructure and production facility largely completed and ready for operations;
• Significant oil and gas potential confirmed across multiple formations.

Operational update

The Fritz 2-30 well is situated at a structurally high point within the field and remains open to the Jeffersonville and Geneva formations. Initial flow testing confirmed production of oil and water accompanied by strong natural gas flow.

During production, natural gas pressure from the Jeffersonville formation restricted natural flow of oil and water from the lower Geneva formation to surface. To address this, the team is finalizing engineering for installation of an electric submersible pump (ESP) positioned near the top of the Geneva oil zone. The ESP will enable controlled lifting of liquids through the production tubing while allowing effective management of natural gas pressure.

Engineering work is under way to optimize pump size and operating parameters based on detailed pressure and flow data. Installation will proceed promptly upon final design approval.

Construction of strategic facility

Construction of a production facility is substantially complete. The facility incorporates oil, water and gas separation equipment, storage tanks, electrical systems and automation controls to support both current operations and future expansion. Durable fibreglass storage tanks and poly pipelines have been installed to minimize corrosion and truck-loading capability for crude oil sales is in place.

Outlook

With critical infrastructure now in place and pump installation planning advancing, the company is well positioned to see the Fritz 2-30 well come into full production and pursue the long-term development of the Fritz field. These steps represent meaningful progress in unlocking the asset's multizone potential and strengthening BGX's U.S. operations. "We are very excited with the developments at the Fritz 2-30 facility in Indiana," commented Francisco Gulisano, chief executive officer of BGX.

"We have already seen production and revenues from the well during the testing phase and are really excited for the well to advance into full production," continued Mr. Gulisano.

El Carmen update

The company has completed the environmental report for the El Carmen property and taken all necessary steps to ensure full compliance with applicable environmental regulations and responsible operational practices. The report confirmed no material environmental liabilities, reinforcing BGX's commitment to high environmental standards as it advances asset evaluation and development.

In parallel, the company successfully completed administrative and regulatory procedures to obtain registration on the Operators Roster of Oil and Gas (Registro de Empresas Petroleras) in Argentina, which is governed by the Secretariat of Energy (Secretaria de Energia). This important milestone positions BGX as a recognized operator in Argentina and supports future operational and development opportunities in the country.

About BGX -- Black Gold Exploration Corp.

BGX is an oil and gas exploration company dedicated to creating shareholder value through the acquisition, exploration and development of oil and gas projects. BGX currently has assets in Argentina and the United States.

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