Mr. Mark Vanry reports

WEDGEMOUNT RESOURCES TO ACQUIRE ADDITIONAL CENTRAL TEXAS OIL AND GAS ASSETS

Wedgemount Resources Corp. has entered into a purchase and sale agreement (PSA) for the acquisition of additional oil and gas assets located in the Permian basin of west-central Texas. The PSA is with an arm's-length private company (the seller) located in Texas, United States.

Highlights:

• 1,200 acres including nine oil and gas leases adjacent to Wedgemount's core area;
• Eight producing and one injector well currently producing 27 barrels of oil per day;
• Total consideration of $650,000 (U.S.) comprising $50,000 (U.S.) cash and a $600,000 (U.S.) vendor takeback loan (VTB);
• Non-dilutive to Wedgemount shareholders as purchase will be financed with cash on hand and VTB loan;
• Minimal capital required to significantly increase current production;
• Multiple up-hole shallow targets on acreage for potential future growth;
• Opportunity to add additional assets in immediate area.

Wedgemount will acquire a 100-per-cent working interest in 1,200 acres including nine oil and gas leases, eight producing and one injector well, and all surface facilities. Current production from the eight wells is approximately 27 barrels of oil per day of high-quality, low-decline operated production. The area's geology consists of numerous hydrocarbon producing formations which will be targeted by the company.

"We're excited to announce Wedgemount's third Permian basin light-oil acquisition in our new core area in central Texas," stated Mark Vanry, chief executive officer of Wedgemount. "We believe the new assets offer the same low-cost production upside exhibited by our existing assets. Further, the deal demonstrates the company's ability to source and execute on low-cost conventional oil acquisitions in central Texas. Fieldwork including chemical treatments and well workovers are expected to commence immediately upon closing. Additional upside potential includes new zone perfs, and additional wells targeting undeveloped zones."

Terms of the purchase

In consideration for the purchase of the assets, Wedgemount will pay the seller $50,000 (U.S.) in cash from the balance sheet and a 10-per-cent, 24-month takeback loan of $600,000 (U.S.). Wedgemount expects to close the proposed transaction as outlined in the PSA on or before Oct. 31, 2023.

About Wedgemount Resources Corp.

Wedgemount Resources is a junior oil and gas company focused on maximizing shareholder value through the acquisition, development and exploitation of natural resource projects in the Southern U.S.

We seek Safe Harbor.