WESTGATE ENERGY COMMENCES FALL DRILLING PROGRAM AND PROVIDES CORPORATE UPDATE

CALGARY, AB, Oct. 23, 2026 /CNW/ -- Westgate Energy Inc. ("Westgate", the "Company", "we" or "our") (TSXV: WGT) is pleased to provide an update on its fall 2026 drilling program at its Killam and Beaverdam assets along with certain other corporate matters.

Fall 2026 Drilling Program Update

Westgate has commenced its previously announced fall drilling program, beginning with a multi-lateral well targeting the Sparky Formation at the Company's Killam asset. The well will be drilled as an offset to the Westgate 11-21 well, which has been the strongest performing well at Killam to date. The new well is designed to incorporate approximately 9,600 metres of total lateral length, compared to approximately 5,400 metres in the 11-21 well, and will incorporate design considerations to accommodate potential future waterflood development.

The second well in the program will be drilled at the Company's Beaverdam asset and will involve the re-entry and sidetrack of the previously drilled C3S well.  As previously disclosed, the original C3S well encountered excellent reservoir quality and encouraging oil shows highly comparable to those observed in the offsetting C2S horizontal well. However, a mechanical failure of the production liner severely restricted reservoir inflow, and the well was subsequently shut in. The planned C3S sidetrack will be drilled parallel to the C2S horizontal, which is the best Beaverdam well drilled by the Company to date.

Drilling operations are expected to continue through November, followed by completion and tie-in activities, with both wells anticipated to commence production in late November 2026.

Management Commentary and Future Drilling

Westgate is currently advancing plans for a follow-up two-well drilling program at its Beaverdam asset, targeted for the first quarter of 2027. The proposed program is expected to further develop the Company's Mannville Stack oil resource, with a focus on expanding production and advancing the long-term development of the asset.  Additional details regarding the wells and timing will be provided as planning progresses.

Long Term Incentive Grants

The Company's board of directors has approved grants of an aggregate of 3,035,000 incentive stock options ("Options") to certain officers, directors, employees and consultants of the Company; an aggregate of 1,355,000 restricted share units ("RSUs") to certain officers and employees of the Company; and an aggregate of 100,000 deferred share units ("DSUs") to directors of the Company (collectively, the "Awards"). The Awards have been granted pursuant to the terms and conditions of Westgate's Second Amended and Restated Omnibus Equity Compensation Plan ("Omnibus Plan"), approved by the shareholders at the most recent annual meeting of shareholders held on July 21, 2026 and which is subject to the policies of the TSX Venture Exchange (the "TSXV").

Prior to this grant of Awards, there were 4,569,000 Options, 1,878,500 RSUs and 166,000 DSUs outstanding. The issuance of the Awards was recommended by the Governance, Compensation and Nomination Committee (the "Committee"), with specific details of the Awards as follows:

• Options: The Options granted are exercisable into common shares of the Company ("Common Shares") at a price of $0.25 per Common Share, vest over a three-year period in increments of 33% every 12 months and have a term of five years with expiry on October 19, 2031.
  
  
• RSUs: RSUs vest over a two-year period with 50% vesting on the 12-month anniversary and 25% vesting every six months thereafter.
  
  
• DSUs: The DSUs vest over a two-year period with 50% vesting on the 12-month anniversary and 25% vesting every six months thereafter. Each DSU entitles the holder to receive one Common Share of the Company at the time the holder ceases to be a director of Westgate.

Notwithstanding the ability of the Company to settle RSUs or DSUs in Common Shares, Westgate may, at its discretion, permit applicable participants to elect to receive an amount in cash (net of applicable withholding taxes) equal to all or a portion of the vested RSUs or DSUs and related Dividend Equivalents (as defined in the Omnibus Plan, if any) being settled by the participant, multiplied by the five day volume weighted average trading price of the Common Shares as at the applicable settlement date.

The Omnibus Plan's objective is to provide Westgate with a mechanism to attract, retain and motivate talent, promote share ownership of eligible individuals to align their interests with the interests of the Company's shareholders, and enable and encourage eligible individuals to participate in the long-term growth and success of the Company.

Insider Participation on LIFE Offering

On September 29, 2026, the Company announced that it had closed its bought deal private placement offering of 27,540,000 units of the Company (the "Units") at a price of $0.25 per Unit for aggregate gross proceeds to the Company of $6,885,000 (the "Offering"). Daniel Brown, Chief Executive Officer of the Company, together with other significant shareholders of the Company (the "Insiders"), participated in the Offering along with strategic investors, institutional investors, and high net worth individuals. Insiders are considered "related parties" of the Company for the purposes of applicable securities laws and stock exchange rules. The subscription and issuance of Units by the Insiders constitute related party transactions but are exempt from the formal valuation and minority approval requirements of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions as neither the fair market value of the Units issued to each of the Insiders, nor the consideration paid by such Insiders, exceeds 25% of the Company's market capitalization. The Company did not file a material change report more than 21 days before the expected closing of the Offering because the details of the participation therein by the Insiders were not settled until shortly prior to closing of the Offering and the Company wished to close on an expedited basis for business reasons.

Investor Relations Services

Effective October 23, 2026, Westgate has entered into a consulting agreement (the "Consulting Agreement") with Athena Capital Markets Ltd. ("Athena") pursuant to which Athena will provide investor relations services to the Company for a term of six months. Under the terms of the Consulting Agreement, Athena will receive aggregate cash compensation of $50,000 at a rate of $8,333.33 per month. In addition, the Company has agreed to grant Athena 200,000 share purchase options with an exercise price of $0.25 (the "Options"). The Consulting Agreement may be terminated by Westgate at any time upon written notice to Athena and there are no performance factors contained in the Consulting Agreement. Pursuant to the Consulting Agreement, Athena will provide investor relations support services, provide assistance in implementing advertising campaigns and produce and disseminate monthly marketing articles. Athena is a Calgary, Alberta based financial and strategic advisory merchant bank specializing in energy and diversified growth sectors. Athena does not own any securities of Westgate and, other than the Options, does not have any right to acquire securities of the Company. The Consulting Agreement remains subject to approval by the TSXV.

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

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

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

Notice regarding forward-looking statements:

This press release includes forward-looking statements regarding Westgate and its business, which may include, but are not limited to: the Company's fall 2026 drilling program, including the drilling plans with respect to the 11-21 well and the C3S well; the expected timing of drilling operations, including timing for completion and tie-in activities and commencement of production; the Company's proposed two-well drilling program at its Beaverdam asset, including the timing thereof; the Company's ability to settle vested RSUs and DSUs in cash; the objective of the Omnibus Plan; the provision of investor relations services by Athena; the approval of the Consulting Agreement by the TSXV; and the characteristics of the Mannville Stack Fairway and the unique position of Westgate in respect thereof. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. The forward-looking statements included in this press release are based on management's current expectations and assumptions, including, but not limited to: the successful completion of the new wells; the expected timing that the new wells will be on production; the performance of Athena's obligations with respect to the Consulting Agreement; receipt of TSXV approval for the Consulting Agreement; and the Company's ability to execute its business strategy and market conditions. Although the Company believes that the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect. Forward-looking statements involve significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to, an increase in the time to drill the new wells and bring such wells on to production; production from wells being less than anticipated; decreases in the price of oil and natural gas and changes in market conditions. Moreover, exploration, appraisal, and development of oil and natural gas reserves are speculative activities and involve a degree of risk. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, other than as required by law.

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]