WESTGATE ENERGY ANNOUNCES INTENTION TO LAUNCH WARRANT EXERCISE INCENTIVE PROGRAM AND OPERATIONAL UPDATE

CALGARY, AB, March 9, 2026 /CNW/ - Westgate Energy Inc. ("Westgate" or the "Company") (TSXV: WGT), is pleased to announce its intention to launch a warrant exercise incentive program (the "Incentive Program") relating to 16,241,267 outstanding common share purchase warrants (the "Eligible Warrants") issued in connection with a best-efforts offering that closed on April 2, 2025. Each Eligible Warrant is exercisable for one common share of the Company (a "Warrant Share") at a price of $0.24 per share until April 2, 2027.

The Incentive Program is subject to the approval of the TSX Venture Exchange (the "TSXV").

Summary Information About Incentive Program

The Incentive Program is designed to encourage the early exercise of the Eligible Warrants for a period of 30 days from the commencement date (the "Incentive Period"). Under the terms of the Incentive Program, each holder who exercises an Eligible Warrant during the Incentive Period will receive, for each Eligible Warrant exercised, one half of an additional common share purchase warrant (an "Incentive Warrant"). Each whole Incentive Warrant will entitle the holder to acquire one additional common share of the Company (a "Common Share") at an exercise price of $0.35 per share for a period of 18 months from the date of issuance.

In the event that the volume-weighted average price of the Common Shares on the TSXV equals or exceeds $0.45 for ten consecutive trading days (an "Acceleration Event"), the Company will be entitled to accelerate the expiry of the Incentive Warrants. If the Company elects to do so, it will issue a press release announcing the Acceleration Event, and the Incentive Warrants will thereafter expire 30 calendar days from the date of such notice.

All Incentive Warrants will be issued to participating holders promptly following the expiry of the Incentive Period.

The Incentive Warrants, and any Common Shares issued upon exercise thereof, will be subject to a statutory hold period of four months and one day from the date of issuance of the Incentive Warrants, in accordance with applicable Canadian securities laws.

Eligible Warrants that remain unexercised after the Incentive Period will continue to be exercisable on their original terms until April 2, 2027. However, no Incentive Warrants will be issued in respect of any Eligible Warrants exercised after the Incentive Period.

Depending on the number of Eligible Warrants exercised during the Incentive Period, the Company expects to:

• receive gross proceeds of up to approximately $3,897,900;
• issue up to 16,241,267 Warrant Shares pursuant to the exercise of Eligible Warrants in accordance with the terms of the Eligible Warrants; and
• issue up to 8,270,633 Incentive Warrants pursuant to the exercise of the Eligible Warrants.

The Incentive Program is subject to the approval of the TSXV. Upon receipt of approval, the Company will issue a press release confirming the details of the Incentive Program and outlining the Incentive Period.

If you have exercised Eligible Warrants in the six months prior to the commencement of the Incentive Period, please contact the Company prior to the end of the Incentive Period.

Use of Proceeds

The proceeds received from the early exercise of Eligible Warrants are expected to be used to fund the pre-drilling costs related to the Company's potential spring drilling program, additional operating cost reduction activities at Beaverdam, as well as for general working capital purposes.

Operational Update

The Company reports that current corporate production is approximately 775 boe/d, as several wells continue to clean up following recent workovers and pump replacements. Production is expected to increase to approximately 850 boe/d by month-end as these wells stabilize.

Additionally, the most recently drilled Colony Formation well from the Company's November drilling program has achieved a new peak production rate, with the most recent weekly average exceeding 180 bbls/d. The Company is very encouraged by the performance of this latest Colony well, as the Colony Formation represents the largest contributor to the Company's drilling inventory at Beaverdam. Planning is currently underway for a potential spring drilling program focused on the Colony Formation.

The Company also reports that its previously announced tank treating facility has now been commissioned. The facility is already improving oil capture and is reducing operating costs associated with current production. As previously disclosed, the facility has capacity to service up to 25 additional wells, which would similarly benefit from increased oil recovery and lower operating costs.

About Westgate

Westgate is focused on the emerging Mannville Stack fairway located in North-East 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 efficiency. 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

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

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

ADVISORIES AND OTHER GUIDANCE

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 of 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 this well and therefor 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 test results should be considered preliminary.

Drilling Inventory 

Unbooked drilling locations in respect of Westgate's assets are the internal estimates of Westgate based on the assets' prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves or resources (including contingent and prospective). Unbooked locations have been identified by the Company's management as an estimation of the Company's multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that Westgate will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and natural gas reserves, resources or production.

The drilling locations on which the Company will actually drill wells, including the number and timing thereof is ultimately dependent upon the availability of funding, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While a certain number of the unbooked drilling locations have been de-risked by Westgate drilling existing wells in relative close proximity to such unbooked drilling locations, the majority of other unbooked drilling locations are farther away from existing wells where management of Westgate has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.

Forward-Looking Statements

Certain statements and information contained in this press release constitute forward-looking statements or forward-looking information (collectively "forward-looking statements") within the meaning of applicable securities legislation. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words or phrases such as "will", "may", "is expected to", "anticipates", "estimates", "intends", "plans", "projects", "could", "vision", "goals", "objective", "outlook" or similar words suggesting future outcomes or language suggesting an outlook. In particular, this press release contains forward-looking statements with respect to, among other things, the following: the intention to implement the Incentive Program including the issuance of Incentive Warrants; anticipated proceeds from the Incentive Program, including the use thereof; the issuance of a press release confirming the details of the Incentive Program and outlining the Incentive Period; TSXV approval for the Incentive Program; expected production; a potential spring drilling program focused on the Colony formation; and improvements to oil capture and the reduction of operating costs due to the commissioning of the tank treating facility.

By their nature, forward-looking statements involve numerous assumptions, and while management of the Company believes the assumptions reflected in its forward-looking statements to be reasonable, there can be no guarantee that actual results will be consistent with these forward-looking statements. In particular, with respect to forward-looking statements contained in this press release and the documents incorporated by reference herein and therein the Company has made assumptions regarding, among other things: the implementation of the Incentive Program by the Company; the number of Eligible Warrants exercised pursuant to the Incentive Program; and the receipt of TSXV approval.

Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release and the documents incorporated by reference herein and therein. Forward-looking statements are subject to various known and unknown risks, both general to the industry as a whole and specific to the Company, that contribute to the possibility that the forward-looking statements contained in this press release may not occur. Although management of the Company believes that the expectations reflected in its forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of known and unknown risks, uncertainties and other factors, many of which are outside the Company's control, including, but not limited to, the following risk factors: low uptake of the exercise of Eligible Warrants pursuant to the Incentive Program; failure to receive TSXV approval; and failure to realize the anticipated increase in oil capture and reduction of operating costs from the tank treating facility.

The above summary of assumptions and risks related to forward-looking statements are provided in this press release to provide readers with a more complete perspective on the Company's current and future operations and such information may not be appropriate for other purposes. Readers are cautioned that the foregoing lists of factors are not exhaustive. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Except as required by applicable securities laws, the Company does not undertake any obligation or is under any duty to publicly update or revise any forward-looking statements. Readers should also carefully consider the matters discussed under the heading "Risk Factors" in the Company's annual information form, a copy of which is available on the Company's SEDAR+ profile at www.sedarplus.ca.

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]