Mr. Leo Berezan reports

WESCAN ENERGY REPORTS FISCAL 2026 YEAR-END RESULTS: PROVOST MULTILATERAL DRIVES 50% NETBACK EXPANSION AND 134% INCREASE IN ADJUSTED FUNDS FLOW

Wescan Energy Corp. has released its financial and operating results for the year ended March 31, 2026, a turnaround year in which the company established a repeatable, oil-weighted development play at Provost, Alta. A multilateral horizontal oil well brought on production during the year materially increased production, expanded operating netbacks by 50 per cent, reduced operating costs per barrel by 36 per cent and more than doubled adjusted funds flow, while converting booked undeveloped reserves into production. The improvement followed a more challenging fiscal 2025 and was delivered through a focused, single-year capital program.

Highlights:

• Fourth quarter production increased 61 per cent to 212 barrels of oil equivalent per day (boe/d) and full-year production increased 17 per cent to 172 boe/d, with production remaining approximately 87 per cent weighted to oil and liquids.
• Operating netback expanded 50 per cent to $25.89 per barrel of oil equivalent (boe) for the year and 270 per cent to $32.61 per boe in the fourth quarter, achieved despite a 14-per-cent decline in benchmark WTI (West Texas Intermediate) prices.
• Operating costs decreased 25 per cent to $1,980,529 and 36 per cent on a per-barrel-of-oil-equivalent basis to $31.56 per boe.
• Adjusted funds flow increased 134 per cent to $1,231,177 and cash flow from operating activities increased 81 per cent to $1,064,053.
• Net loss narrowed 43 per cent to $452,649 (2025 -- $799,969), continuing to reflect non-cash depletion, depreciation and accretion of $1,282,386.
• Proved developed producing reserves increased to 264.8 million boe -- approximately 107-per-cent replacement of the year's production -- as the new well converted approximately 108 million boe from proved undeveloped to producing.

Management commentary

"Fiscal 2026 was the year Wescan turned the corner," said Leo Berezan, chief executive officer and chairman of Wescan. "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 derisked 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 of Wescan. "It lifted fourth quarter production 61 per cent, cut our operating cost per barrel by more than a third and expanded our operating netback by 50 per cent even as oil prices weakened. With our newly acquired 3-D 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."

Operational update -- Provost

During fiscal 2026, Wescan drilled and brought on production a multilateral horizontal oil well at Provost, Alta. (Wescan 104 Provost 15-27-38-3), in the company's 100-per-cent-operated, oil-weighted core area. The well has recently produced at approximately 90 barrels per day (bbl/d) of oil and represented a substantial share of fourth quarter volumes. The company's crude at Provost is approximately 29-degree-API medium-gravity oil, trucked to market to capture WTI-based pricing:

• Derisking: The well converted approximately 108 million boe from proved undeveloped to proved developed producing, confirming the productivity of the multilateral horizontal development concept in the area.
• Seismic and land: Wescan acquired a 3-D seismic trade licence to further evaluate the play and an additional half section (approximately 320 acres) of acreage.

Initial and short-term production rates are not necessarily indicative of long-term performance or ultimate recovery.

Financial review

Petroleum and natural gas revenue increased 5 per cent to $4,232,059 (2025 -- $4,034,886) as a 17-per-cent increase in production more than offset a 14-per-cent decline in benchmark WTI prices. Royalties were $626,678 (2025 -- $483,621) or 14.8 per cent of revenue, reflecting a production-mix shift toward freehold lands at Provost.

Operating costs decreased 25 per cent to $1,980,529 (2025 -- $2,626,094) and fell 36 per cent per boe to $31.56 per boe (2025 -- $49.12 per 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 per cent to $25.89 per boe.

Adjusted funds flow increased 134 per cent to $1,231,177 (2025 -- $525,200) and cash flow from operating activities increased 81 per cent to $1,064,053 (2025 -- $587,164). The company recorded a net loss of $452,649 (2025 -- net loss of $799,969), 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 (March 31, 2025 -- approximately $2.1-million), and the working capital deficiency was $1,341,723 (2025 -- $981,640). The financial statements include a going-concern note and the company expects to require additional financing to finance future development. Wescan had no commodity hedges in place during or at the end of the year.

Reserves

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 million boe (2025 -- 259.9 million boe), approximately 107 per cent of the year's production, as the Provost well converted approximately 108 million boe from proved undeveloped to producing. Total proved reserves were 396.8 million boe and proved plus probable reserves were 497.5 million boe; on a total basis, reserves declined modestly as annual production exceeded new bookings. Reserves are reported in accordance with National Instrument 51-101.

Outlook

Fiscal 2026 established a repeatable, oil-weighted development play at Provost. Building on the multilateral horizontal well brought on production during the year, Wescan intends to advance its derisked development inventory, supported by its newly acquired 3-D seismic trade licence and additional acreage.

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 derisked 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 3-D seismic, and which remain subject to further technical evaluation, regulatory approval and available financing. Wescan will continue to prioritize field-level cost control, the reactivation of shut-in wells and strengthening its financial position, while remaining disciplined on capital allocation given commodity price and financing conditions.

Non-GAAP (generally accepted accounting principles) and other financial measures

This news release refers to certain measures that are not determined in accordance with IFRS (international financial reporting standards), including adjusted funds flow, operating netback, operating costs (per boe) and net debt. These measures do not have standardized meanings prescribed by IFRS and may not be comparable with similar measures presented by other issuers. Adjusted funds flow 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 management's discussion and analysis (MD&A) for the year ended March 31, 2026, available on SEDAR+.

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