WESTGATE ENERGY ANNOUNCES Q2 2026 FINANCIAL RESULTS AND PROVIDES OPERATIONAL UPDATE

CALGARY, AB, Aug. 28, 2026 /CNW/ -- Westgate Energy Inc. ("Westgate" or the "Company") (TSXV: WGT), is pleased to announce the filing of its unaudited financial and operating results for the three and six months ended June 30, 2026. The selected financial and operating information provided below should be read in conjunction with Westgate's unaudited consolidated financial statements and related management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2026 and 2025, which are available on SEDAR+ at www.sedarplus.ca and on Westgate's website at www.westgateenergy.ca.

Q2 2026 ("Q2/26") Highlights

• Q2 2026 production averaged 610 boe/d, an increase of 141% compared to 253 boe/d in Q2 2025.
• Operating netback increased to $45.35/boe, compared to $20.74/boe in Q2 2025, reflecting higher oil weighting and realized pricing from the Beaverdam development.
• Operating income increased to $2.5 million, compared to $0.5 million in Q2 2025, driven by higher realized pricing and increased production from Beaverdam.
• The Company acquired two nearby natural gas wells that are expected to be tied into the Beaverdam facilities in Q3 2026, displacing propane costs and thereby reducing annual operating costs by more than $1.2 million.
• The tank treating facility, commissioned in Q1 2026, was fully operational for the second quarter. It has significantly reduced produced sand disposal costs related to producing the wells at Beaverdam. It has also resulted in the recovery of as much as 30 bbl/d of additional sales oil through the tank treating process, which would otherwise be sent for third party disposal.
• Current corporate production is approximately 800 boe/d, representing a 31% increase over the Q2 2026 average.

Financial & Operating Results Summary

		Three Months Ended June 30,		Six Months Ended June 30,
($'s, unless otherwise stated)		2026	2025	2026	2025
Production
Oil	bbl/d	516	130	534	134
Natural gas	mcf/d	537	708	513	705
NGLs	bbl/d	5	5	5	5
Total	Boe/d	610	253	625	256
Revenue:
Crude Oil		5,124,021	882,207	8,863,430	1,923,292
Natural Gas		63,760	78,879	138,866	188,384
NGLs		48,566	25,140	84,561	52,987
Petroleum, natural gas and NGL sales		5,236,347	986,226	9,086,857	2,164,663
Processing income		3,231	3,863	5,737	7,246
Total Revenue^(1)		5,239,578	990,089	9,092,594	2,171,909
Royalties		(779,247)	(127,503)	(1,293,378)	(282,475)
Operating expenses		(1,676,657)	(336,363)	(3,240,000)	(818,756)
Transportation expenses		(265,577)	(48,557)	(510,976)	(73,187)
Operating Income ^(1)		2,518,097	477,666	4,048,240	997,491

		Three Months Ended June 30,		Six Months Ended June 30,
($'s, unless otherwise stated)		2026	2025	2026	2025
Expenditures on E&E		-	-	-	-
Expenditures on P&E		(7,002,334)	(4,844,842)	(8,788,213)	(5,510,942)
Acquisition of P&E		(7,680)	-	(7,682)	-
REALIZED PRICES^(2)
Crude Oil	$/bbl	109.22	74.41	91.67	79.42
Natural Gas	$/mcf	1.30	1.23	1.50	1.48
NGLs	$/bbl	105.08	56.97	87.25	60.82
Realized Price^(2)	$/boe	94.30	42.83	80.32	46.71
Processing revenue	$/boe	0.06	0.17	0.05	0.16
Royalties	$/boe	(14.03)	(5.54)	(11.43)	(6.09)
Royalties as a percentage of revenue^(2)	%	15 %	13 %	14 %	13 %
Operating expenses	$/boe	(30.20)	(14.61)	(28.64)	(17.68)
Transportation expenses	$/boe	(4.78)	(2.11)	(4.52)	(1.58)
Operating Netback^(1)	$/boe	45.35	20.74	35.78	21.52

(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.

Drilling and Operations Update

The Company drilled two wells at Beaverdam during Q2 2026 with both wells encountering excellent reservoir characteristics and confirming the continued development potential of the area.

The first well (102/13-19 or "C3S") encountered excellent geological quality for the entire 1,400 metres of lateral section. Oil shows and reservoir quality were the best encountered to date on the Beaverdam property, consistent with the offsetting successful 104/12-19 ("C2S"). During completion operations the circulation string could only be advanced 250 metres into the liner before encountering an obstruction, which was determined to be a compromised liner. As a result of this completion constraint, the Company put the well on production and it is currently producing approximately 25 bbl/d. Given the quality of the reservoir encountered and the strong performance of the offset analog C2S, the Company plans to re-enter and sidetrack the well in Q1 2027, replicating the successful existing well path and subsequently running a new liner and circulation string.

The second well of the program (102/14-19 or "C4S") encountered an unexpected oil-bearing Upper Grand Rapids channel while drilling. Prior to encountering the Upper Grand Rapids channel, the well encountered approximately 45 metres of excellent-quality Colony reservoir within the intermediate casing section, which was subsequently perforated and placed on production. The Company plans to produce the well from the Colony perforations for several months to evaluate its production characteristics before transitioning the well to a circulation-string production methodology. This will allow the Company to understand the production potential of the 45 metres perforated Colony before production is commingled with the Upper Grand Rapids channel to evaluate its production potential as a circulation-string well. The well is currently exhibiting a strong fluid level and producing approximately 40 bbl/d from the 45 metres of Colony perforations, with management forecasting potential production of up to 75 bbl/d based on historical performance of adjacent analog wells.

The drilling of the planned third and fourth wells was deferred until oil rates from the Upper Grand Rapids channel encountered on C4S can be determined. 

Current Production and Outlook

Current corporate production is approximately 800 boe/d, representing a 31% increase over the Q2 2026 average. Beaverdam optimization over the last quarter has resulted in certain wells producing at stable rates, exhibiting no decline. These wells are currently producing close to their initial production rates after 6 to12 months of production.  Further optimization initiatives are ongoing at Beaverdam, with its current production at an all-time high of 590 bbl/d. The two new wells are expected to continue to improve while the Company prepares for both the sidetrack drill from C3S, and the establishment of production circulation on C4S to evaluate the Upper Grand Rapids. In conjunction with the Beaverdam efforts, the Company's other property at Killam has been producing at 220 boe/d (72% liquids) despite no new wells being drilled there since September 2024 and has shown no decline over the last 12 months.

Westgate is actively planning and preparing for new wells to be drilled at both Killam and Beaverdam in Q4 2026 and Q1 2027, respectively.

About Westgate

Westgate is focused on the emerging Mannville Stack fairway located in East-Central Alberta and West-Central Saskatchewan, a region with established medium and heavy oil accumulations. Producers in this fairway are increasingly unlocking these reservoirs with modern horizontal drilling and completion techniques, which have materially improved well performance and capital efficiencies. Activity to date has delivered some of the strongest oil well economics in Western Canada.

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; potential cost savings from replacing current propane fuel gas use on the Beaverdam lease; the Company's objective and growth strategy; and oil, NGLs and natural gas production levels. 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 capital from internal and external sources and changes in tariff, tax, royalty and environmental legislation. Further important factors affecting forward-looking statements and management's assumptions and analysis thereof is available in filings made by the Company with Canadian provincial securities commissions available on SEDAR+ at www.sedarplus.ca.

The forward-looking statements and information contained in this press release are made as of the date hereof for the purpose of providing the readers with the Company's expectations. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Oil and Gas Advisories

Barrels of Oil Equivalent
Boe may be misleading, particularly if used in isolation. In accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities, a conversion ratio for conventional natural gas of 6 Mcf:1 bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, utilizing a conversion on a 6 Mcf:1 bbl basis may be misleading as an indicator of value as the value ratio between conventional natural gas and heavy crude oil, based on the current prices of natural gas and crude oil, differ significantly from the energy equivalency of 6 Mcf:1 bbl.

Initial Production Rates
Initial production rates disclosed herein, particularly those short in duration, may not necessarily be indicative of long-term performance or of ultimate recovery. Readers are cautioned that short-term rates should not be relied upon as indicators of future performance of these wells and therefore should not be unduly relied upon for investment or other purposes. All initial production rates presented herein represent the results from wells after all "load" fluids (used in well completion) have been recovered. The Company cautions that the results should be considered preliminary.

Advisories and Other Guidance

Non-GAAP Financial Measures and Ratios
This press release contains non-GAAP financial measures, non-GAAP ratios and supplementary financial measures, including operating income (loss), operating netback, total revenue, realized price, and royalties as a percentage of revenue which are not recognized measures under GAAP. Management believes these measures are useful for reporting purposes and for evaluating the consolidated financial position of the Company but cautions readers that these measures should not be considered as alternatives to measures calculated in accordance with GAAP. Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers for these non-GAAP financial measures.

Operating Income (Loss)
Operating income (loss) is a non-GAAP financial measure calculated by subtracting the cost of royalties, operating expenses and transportation from total revenue. Operating income (loss) is a component of operating netback, a non-GAAP ratio that management believes is a key industry benchmark and a measure of performance of the Company that provides investors/readers with information that is commonly used by other petroleum and natural gas producers. For a reconciliation of operating income (loss) to revenue, the most directly comparable GAAP measure, see the table under the heading "Financial & Operating Results Summary" within this press release.

Operating Netback
Operating Netback is a non-GAAP financial ratio calculated by dividing operating income (loss) by production volumes. Operating Netback allows management and others to evaluate the production results from the Company's assets. Management feels that operating netback is a key industry benchmark and a measure of performance of the Company that provides investors/readers with information that is commonly used by other petroleum and natural gas producers.

Total Revenue
Total revenue is a non-GAAP financial measure calculated by adding processing revenue to petroleum, natural gas and NGL sales. Management uses total revenue to evaluate the cash flow generated from the Company's assets and believes it is useful to investors as a key industry benchmark and a measure of performance of the Company that provides investors/readers with information that is commonly used by other petroleum and natural gas producers. For a reconciliation of petroleum, natural gas and NGL sales, the most directly comparable GAAP measure, see the table under the heading "Financial & Operating Results Summary" within this press release.

Realized Price
Realized price is a supplementary financial measure calculated as the revenue by product divided by the production by product and is a key industry benchmark and a measure of performance of the Company that provides investors/readers with information that is commonly used by other petroleum and natural gas producers.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Westgate Energy Inc.

For further information concerning Westgate Energy Inc., please contact: Dan Brown, Chief Executive Officer and Director, Email: [email protected]; Nick Grafton, Chief Financial Officer, Email: [email protected], Phone: [phone]