WesCan Energy Corp. (TSXV: WCE) announced its financial and operating results for the year ended March 31, 2026, highlighting a significant turnaround driven by a multilateral horizontal oil well at Provost, Alberta. The well, brought on production during the year, materially increased production, expanded operating netbacks by 50%, reduced operating costs per barrel by 36%, and more than doubled adjusted funds flow. 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 increased 17% to 172 boe/d, with production remaining approximately 87% weighted to oil and liquids. The 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.”
During fiscal 2026, WesCan drilled and brought on production the 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 and an additional half section of acreage to further evaluate the play.
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.
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. Total proved reserves were 396.8 MBOE, and proved plus probable reserves were 497.5 MBOE. Reserves are reported in accordance with NI 51-101.
This news release refers to certain non-GAAP measures, including adjusted funds flow, operating netback, operating costs per boe, and net debt. Reconciliations to the most directly comparable IFRS measures are provided in the Company’s MD&A for the year ended March 31, 2026, available on SEDAR+ at www.sedarplus.ca. Forward-looking statements are based on assumptions and subject to risks, including commodity price volatility, production and reserve risk, access to capital, and regulatory approvals. Readers are cautioned not to place undue reliance on forward-looking statements.
