WESTGATE ENERGY ANNOUNCES YEAR END 2024 FINANCIAL RESULTS AND RESERVE ADDITIONS

Canada NewsWire

CALGARY, AB, April 24, 2025

CALGARY, AB, April 24, 2025 /CNW/ - Westgate Energy Inc. ("Westgate" or the "Company") (TSXV: WGT), is pleased to announce the filing of its audited financial and operating results for the three and twelve months ended December 31, 2024. The selected financial and operating information provided below should be read in conjunction with Westgate's audited consolidated financial statements and related management's discussion and analysis ("MD&A") for the three and twelve months ended December 31, 2024 and 2023, as well as the annual information form for the year ended December 31, 2024, which are available on SEDAR+ at www.sedarplus.ca and on Westgate's website at www.westgateenergy.ca.

Financial & Operating Results Summary

 
                                Three Months Ended    Twelve Months Ended 
                                 December 31,          December 31, 
($'s, unless otherwise          2024       2023       2024         2023 
stated) 
Production 
Oil                      bbl/d        151         33          106         22 
Natural gas              mcf/d        732        437          631        425 
NGLs                     bbl/d          5          4            5          5 
Total                    boe/d        278        110          216         97 
 
Revenue: 
Crude Oil                       1,159,167    272,172    3,234,218    711,510 
Natural Gas                        54,377     81,264      198,401    356,635 
NGLs                               29,137     25,844      126,409    118,299 
Petroleum, natural gas 
 and NGL sales                  1,242,681    379,280    3,559,028  1,186,444 
Processing income                   3,267     13,404       11,203     13,404 
Total Revenue(1)                1,245,948    392,684    3,570,231  1,199,848 
Royalties                       (158,081)   (66,866)    (415,546)  (176,127) 
Operating expenses              (652,962)  (345,366)  (1,718,053)  (882,208) 
Operating Income 
 (loss)(1)                        434,905   (19,548)    1,436,632    141,513 
Expenditures on exploration 
 and evaluation                 2,336,887          -    2,586,967          - 
Expenditures on property and 
 equipment                        658,137  2,466,978    4,991,549  2,560,778 
Acquisition of property and 
 equipment                              -     11,683            -  1,537,797 
REALIZED PRICES(2) 
Crude oil                $/bbl      83.42      89.36        83.75      90.60 
Natural gas              $/mcf       0.81       2.02         0.86       2.30 
NGLs                     $/bbl      65.11      66.31        67.00      66.11 
Realized Price(2)        $/boe      48.60      37.43        45.06      33.41 
Processing revenue       $/boe       0.13       1.32         0.14       0.38 
Royalties                $/boe     (6.18)     (6.60)       (5.26)     (4.96) 
Royalties as a 
 percentage of 
 revenue(2)                  %       13 %       18 %         12 %       15 % 
Operating expenses       $/boe    (25.54)    (34.08)      (21.75)    (24.84) 
Operating Netback(1)     $/boe      17.01     (1.93)        18.19       3.99 
(1) Non-GAAP financial measure or non-GAAP ratio. 
 Refer to the "Advisories and Other Guidance" section 
 within this press release for additional information, 
 including reconciliations to the most directly comparable 
 GAAP measures.(2) Supplementary financial measure. Refer to the 
 "Advisories and Other Guidance" section within this 
 press release for additional information on supplementary 
 financial measures. 
 
 

Q4 2024 ("Q4/24") and Annual ("2024") Highlights

   --  Average production volumes increased to 278 boe/d (54% crude oil) in 
      Q4/24 compared to 110 boe/d (30% crude oil) in Q4/23, representing a 153% 
      increase. 
 
   -- Achieved 2H/2024 production of 246 boe/d, in line with the previously 
      guided 250 boe/d. 
 
   -- Achieved an operating netback(1) of $17.01per boe in Q4/24, representing 
      a $18.94/boe increase from ($1.93) per boe in Q4/23. 
 
   -- Acquired new lands at Beaverdam that are prospective for horizontal 
      drilling in the Mannville Stack, adding 40 multilateral drill locations. 
 
   -- During 2024, the Company added 197.5 mboe of proved plus probable ("2P") 
      reserves, a 31% increase from year end 2023, driven by organic additions. 
      2P reserves totaled 763.9 Mboe, proved reserves totaled 587.2 Mboe and 
      proved developed producing reserves totaled 461.7 Mboe. 
 
_________________________________ 
(1) Non-GAAP financial measure or non-GAAP ratio. 
 Refer to the "Advisories and Other Guidance" section 
 within this press release MD&A for additional information, 
 including reconciliations to the most directly comparable 
 GAAP measures. 
 

Forward Planning at New Core Area

As previously announced, Westgate plans to drill three wells on its newly acquired lands near Cold Lake Alberta. Drilling is expected to commence in mid-May 2025, pending the timing of county road bans being lifted. The three wells are expected to be on production in July 2025. This program will be funded using the recently closed credit facility.

Westgate's Differentiated Strategy

Westgate is focused on the emerging Mannville Stack fairway located in East-Central Alberta and West Central Saskatchewan. This fairway is characterized by known accumulations of medium and heavy oil which are being 'unlocked' via the application of innovative drilling techniques that utilize multi-lateral horizontal drilling. Applying these multi-lateral drilling techniques has yielded some of the strongest oil well economics across Western Canada. The management team and board of Westgate have extensive experience building and leading successful energy companies in Canada. The collective successes of the leadership group share common characteristics: a strategy of targeting high-quality oil assets with large quantities of oil-in-place and driving growth through successful drilling as well as strategic merger and acquisition opportunities. This proven blueprint of delivering shareholder value will be foundational to Westgate's strategy, positioning the Company as one of a select few pure-play, high-growth, publicly-traded junior oil companies focused on the Mannville Stack Fairway.

For more information, please visit www.westgateenergy.ca.

Reader Advisories

In this press release, all references to "$" are to Canadian dollars.

Forward-Looking Information

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this press release contains forward-looking statements and information relating to the Company's drilling and capital expenditure programs and the timing thereof; the performance characteristics of the Company's oil and natural gas properties; drilling inventory; the Company's objective and growth strategy; oil, NGLs and natural gas production levels; and the quantity of oil, natural gas and NGLs reserves. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to the ability of management to successfully implement and execute its business plan, prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the timing and success of its future drilling plans and its ability to identify new drilling locations, the anticipated benefits of its relationships with the applicable Metis Settlements, the ability of the Company to integrate its current and proposed assets, drilling and production potential from its current and proposed assets and the Mannville Stack more generally, the availability of capital to undertake planned activities, the Company's ability to generate sufficient cash flow to meet its current and future obligations, assumptions regarding the ability to use multilateral horizontal drilling, including its expected decreased capital expenses and increased production benefits, the availability and cost of labour and services and the receipt of all necessary approvals.

Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure of management to successfully implement its business plan and/or the failure of such initiatives to yield the expected benefits and results, the failure of the Company to successfully implement its future drilling plans and identify new drilling locations, the accuracy of analogous information, the failure to realize the anticipated benefits of the Company's relationships with applicable Metis Settlements, the failure of the Company to successfully integrate its current and proposed assets and other risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient

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