Coelacanth accomplished and commissioned its new battery facility in early June and subsequently began to systematically place the 9 beforehand drilled Montney wells from the 5-19 pad on manufacturing. Though Coelacanth has chosen to average the tempo of wells introduced on-stream due to low pure gasoline costs on the Station 2 hub, the outcomes so far have exceeded expectations.
Decrease Montney
Three Decrease Montney wells (D5-19, E5-19, F5-19) have been positioned on manufacturing this summer time and have significant preliminary manufacturing information as follows:
- D5-19 has a accomplished lateral size of three,180 metres and had gross sales manufacturing for its preliminary 30-day interval of 1,037 boe/d (57% liquids) comprised of 546 bbls/d of sunshine oil, 2,659 mmcf/d of pure gasoline and 48 bbls/d of pure gasoline liquids.
- E5-19 has a accomplished lateral size of two,775 metres and had gross sales manufacturing for its preliminary 30-day interval of 1,346 boe/d (67% liquids) comprised of 854 bbls/d of sunshine oil, 2,660 mmcf/d of pure gasoline and 49 bbls/d of pure gasoline liquids.
- F5-19 has a accomplished lateral size of two,800 metres and had gross sales manufacturing for its preliminary 22-day interval of 1,323 boe/d (61% liquids) comprised of 745 bbls/d of sunshine oil, 3,121 mmcf/d of pure gasoline and 58 bbls/d of pure gasoline liquids.
The wells have exceeded preliminary manufacturing on a proved plus possible foundation (2P) as booked by GLJ Ltd. (“GLJ”) in its impartial analysis for Coelacanth.
GLJ RESERVE REPORT DATED EFFECTIVE JUNE 30, 2025
Coelacanth has up to date its beforehand disclosed 2024 year-end reserves report as independently evaluated by GLJ. The brand new GLJ reserves report is efficient June 30, 2025 and is a mechanical replace to the prior report (the “Reserve Report”). The mechanical replace doesn’t change the manufacturing profiles offered within the 2024 year-end report however does present the next:
- Reclassification of reserves on all 9 Montney wells on the 5-19 pad (8.7 million boe) from non-producing standing (Proved Non-Producing and Possible Non-Producing) to producing standing (Proved Producing and Possible Producing) given Coelacanth’s new battery facility is full and all wells are actually able to manufacturing.
- Rescheduled timing of wells being positioned on manufacturing.
- Elimination of $37.5 million of future growth capital pertaining to facility and different capital booked previous to the July 1, 2025 efficient date.
- Up to date future pricing reflecting GLJ’s newest worth forecast.
The Report will increase the general reserve worth by $40.4 million from the year-end report however extra importantly will increase the manufacturing standing reserves by $107.4 million (estimated future web revenues earlier than taxes discounted at 10%). Coelacanth believes the July 1, 2025 up to date GLJ Report higher displays the present standing of the Firm given the modifications as famous above.
Congruent with the prior report, GLJ has positioned reserves on lower than 10 web sections of land and predominantly within the Decrease Montney leaving room to broaden the reserve base each aerially and vertically.
Reserves Abstract
Coelacanth’s June 30, 2025 reserves as ready by GLJ efficient June 30, 2025 and primarily based on the GLJ (2025-07) future worth forecast are as follows: (1)
| Working Curiosity Reserves (2) | Tight Oil (Mbbl) |
Shale Pure Gasoline (Mmcf) |
NGLs (Mbbl) |
Complete Oil Equal (Mboe) (3) |
| Proved | ||||
| Producing | 2,017 | 45,129 | 836 | 10,374 |
| Developed non-producing | – | – | – | – |
| Undeveloped | 1,256 | 28,336 | 525 | 6,504 |
| Complete proved | 3,273 | 73,465 | 1,361 | 16,878 |
| Possible | 2,157 | 44,640 | 827 | 10,424 |
| Complete proved & possible | 5,430 | 118,105 | 2,188 | 27,302 |
| Notes: | |
| (1) | Numbers could not add on account of rounding. |
| (2) | “Working Curiosity” or “Gross” reserves means Coelacanth’s working curiosity (working and non-operating) share earlier than deduction of royalties and with out together with any royalty curiosity of Coelacanth. |
| (3) | Oil equal quantities have been calculated utilizing a conversion price of six thousand cubic ft of pure gasoline to at least one barrel of oil. |
Reserves Values
The estimated future web revenues earlier than taxes related to Coelacanth’s reserves efficient June 30, 2025 and primarily based on the GLJ (2025-07) future worth forecast are summarized within the following desk: (1,2,3)
| Low cost issue per 12 months | |||||
| ($000s) | 0% | 5% | 10% | 15% | 20% |
| Proved | |||||
| Producing | 176,441 | 144,557 | 122,202 | 105,937 | 93,680 |
| Developed non-producing | – | – | – | – | – |
| Undeveloped | 97,882 | 68,628 | 49,981 | 37,384 | 28,424 |
| Complete proved | 274,323 | 213,185 | 172,183 | 143,321 | 122,104 |
| Possible | 214,074 | 146,438 | 107,868 | 83,914 | 67,902 |
| Complete proved & possible | 488,397 | 359,623 | 280,051 | 227,235 | 190,006 |
| Notes: | |
| (1) | Numbers could not add on account of rounding. |
| (2) | The estimated future web revenues are said previous to provision for curiosity, debt service prices or normal and administrative bills and after deduction of royalties, working prices, estimated nicely abandonment and reclamation prices and estimated future capital expenditures. |
| (3) | The estimated future web income contained within the desk doesn’t essentially symbolize the honest market worth of the reserves. There isn’t a assurance that the forecast worth and value assumptions contained within the GLJ Report will likely be attained and variations may very well be materials. The restoration and reserve estimates described herein are estimates solely. Precise reserves could also be larger or lower than these calculated. |
Value Forecast
The GLJ (2025-07) worth forecast is as follows:
| 12 months | WTI Oil @ Cushing ($US / Bbl) |
Edmonton Mild Oil ($Cdn / Bbl) |
AECO Pure Gasoline ($Cdn / Mmbtu) |
Chicago Pure Gasoline ($US / Mmbtu) |
Overseas Change (Cdn$/US$) |
| 2025 Q3-This fall | 65.00 | 84.93 | 2.20 | 3.55 | 0.7300 |
| 2026 | 70.00 | 90.54 | 3.46 | 4.35 | 0.7400 |
| 2027 | 73.50 | 94.00 | 3.50 | 4.01 | 0.7500 |
| 2028 | 76.41 | 96.99 | 3.85 | 4.10 | 0.7500 |
| 2029 | 77.94 | 98.92 | 3.92 | 4.18 | 0.7500 |
| 2030 | 79.49 | 100.89 | 4.00 | 4.27 | 0.7500 |
| 2031 | 81.08 | 102.91 | 4.08 | 4.35 | 0.7500 |
| 2032 | 82.71 | 104.99 | 4.16 | 4.45 | 0.7500 |
| 2033 | 84.36 | 107.08 | 4.25 | 4.54 | 0.7500 |
| 2034 | 86.05 | 109.21 | 4.33 | 4.63 | 0.7500 |
| Escalate thereafter (1) |
2.0% per 12 months | 2.0% per 12 months | 2.0% per 12 months | 2.0% per 12 months |
| (1) | Escalated at two per cent per 12 months beginning in 2035 within the July 1, 2025 GLJ worth forecast excluding overseas change, which stays flat. |
GLJ RESOURCE REPORT
GLJ has offered a Useful resource Report efficient June 30, 2025 on Coelacanth’s Two Rivers Montney lands encompassing roughly 150 web sections over 4 recognized Montney zones (the “Useful resource Report”). As displayed beneath, Coelacanth has an estimated 6.9 billion barrels of Found Petroleum Initially-In-Place (PIIP) and 5.9 trillion cubic ft of Found Gasoline PIIP. The Useful resource Report additionally estimates 8.3 billion barrels of Undiscovered Petroleum PIIP and seven.1 trillion cubic ft of Undiscovered Gasoline PIIP in place on its lands.
Thus far, Coelacanth has targeted to various levels on 3 of the 4 Montney zones (Higher, Decrease, Basal) with in depth mapping, core work, and placement of horizontal wells in all 3 zones to assist decide economics and supreme recoveries of the useful resource. The Center Montney has had minimal work carried out on it so far and is listed as undiscovered at this level. Coelacanth will carry out further work on the center Montney sooner or later to higher perceive its commerciality.
The Useful resource Report not solely portrays how giant the Coelacanth’s Montney useful resource in place is, however will likely be used as a software in figuring out nicely spacing, frac design and supreme nicely recoveries to help within the general growth of Coelacanth’s Two Rivers challenge.
| Zone | Found Oil PIIP (Billion Bbls) |
Undiscovered Oil PIIP (Billion Bbls) |
| Higher Montney | 2.5 | 0.2 |
| Center Montney | – | 5.0 |
| Decrease Montney | 3.0 | 0.2 |
| Basal Montney | 1.3 | 2.9 |
| Complete Montney(1) | 6.9 | 8.3 |
| (1) | Numbers could not add on account of rounding |
| Zone | Found Gasoline PIIP (Trillion cubic ft) |
Undiscovered Gasoline PIIP (Trillion cubic ft) |
| Higher Montney | 2.1 | 0.1 |
| Center Montney | – | 4.2 |
| Decrease Montney | 2.6 | 0.2 |
| Basal Montney | 1.1 | 2.5 |
| Complete Montney(1) | 5.9 | 7.1 |
| (1) | Numbers could not add on account of rounding |
General, Coelacanth could be very happy with its nicely outcomes so far and is trying ahead to establishing the last word recoverable reserves whereas rising booked reserves and on its giant Two Rivers Montney Useful resource for the good thing about its stakeholders.
Oil and Gasoline Phrases
The Firm makes use of the next steadily recurring oil and gasoline business phrases within the information launch:
| Liquids | |
| Bbls | Barrels |
| Bbls/d | Barrels per day |
| NGLs | Pure gasoline liquids (contains condensate, pentane, butane, propane, and ethane) |
| WTI | West Texas Intermediate at Cushing, Oklahoma |
| Pure Gasoline | |
| Mcf | 1000’s of cubic ft |
| Mcf/d | 1000’s of cubic ft per day |
| MMcf/d | Hundreds of thousands of cubic ft per day |
| MMbtu | Hundreds of thousands of British thermal units |
| Oil Equal | |
| Boe | Barrels of oil equal |
| Boe/d | Barrels of oil equal per day |
Disclosure offered herein in respect of a boe could also be deceptive, notably if utilized in isolation. A boe conversion price of six thousand cubic ft of pure gasoline to at least one barrel of oil equal has been used for the calculation of boe quantities within the information launch. This boe conversion price relies on an vitality equivalency conversion technique primarily relevant on the burner tip and doesn’t symbolize a price equivalency on the wellhead.
Product Varieties
The Firm makes use of the next references to gross sales volumes within the information launch:
Pure gasoline (and gasoline) refers to shale gasoline
Oil refers to tight oil
NGLs refers to butane, propane and pentanes mixed
Liquids refers to tight oil and NGLs mixed
Oil equal refers back to the complete oil equal of shale gasoline, tight oil, and NGLs mixed, utilizing the conversion price of six thousand cubic ft of shale gasoline to at least one barrel of oil equal as described above.
Ahead-Wanting Info
This information launch accommodates forward-looking statements and forward-looking data throughout the which means of relevant securities legal guidelines. The usage of any of the phrases “anticipate”, “anticipate”, “proceed”, “estimate”, “could”, “will”, “ought to”, “consider”, “intends”, “forecast”, “plans”, “steering” and comparable expressions are meant to determine forward-looking statements or data.
Extra notably and with out limitation, this doc accommodates forward-looking statements and knowledge referring to the Firm’s oil, NGLs and pure gasoline manufacturing and reserves and reserves values, oil and pure gasoline sources, capital applications, and oil, NGLs, and pure gasoline commodity costs. The forward-looking statements and knowledge are primarily based on sure key expectations and assumptions made by the Firm, together with expectations and assumptions referring to prevailing commodity costs and change charges, relevant royalty charges and tax legal guidelines, future nicely manufacturing charges, the efficiency of present wells, the success of drilling new wells, the supply of capital to undertake deliberate actions and the supply and value of labor and providers.
Though the Firm believes that the expectations mirrored in such forward-looking statements and knowledge are affordable, it can provide no assurance that such expectations will show to be appropriate. Since forward-looking statements and knowledge deal with future occasions and circumstances, by their very nature they contain inherent dangers and uncertainties. Precise outcomes could differ materially from these presently anticipated on account of quite a few components and dangers. These embody, however will not be restricted to, the dangers related to the oil and gasoline business basically corresponding to operational dangers in growth, exploration and manufacturing, delays or modifications in plans with respect to exploration or growth initiatives or capital expenditures, the uncertainty of estimates and projections referring to manufacturing charges, prices and bills, commodity worth and change price fluctuations, advertising and transportation, environmental dangers, competitors, the flexibility to entry enough capital from inner and exterior sources and modifications in tax, royalty and environmental laws. The forward-looking statements and knowledge contained on this doc are made as of the date hereof for the aim of offering the readers with the Firm’s expectations for the approaching 12 months. The forward-looking statements and knowledge is probably not applicable for different functions. The Firm undertakes no obligation to replace publicly or revise any forward-looking statements or data, whether or not on account of new data, future occasions or in any other case, until so required by relevant securities legal guidelines.
Assets Knowledge
Complete Petroleum Initially-In-Place (PIIP) is that amount of petroleum that’s estimated to exist initially in naturally occurring accumulations. It contains that amount of petroleum that’s estimated, as of a given date, to be contained in recognized accumulations, previous to manufacturing, plus these estimated portions in accumulations but to be found (equal to “complete sources”).
Found Petroleum Initially-In-Place (equal to found sources) is that amount of petroleum that’s estimated, as of a given date, to be contained in recognized accumulations previous to manufacturing. The recoverable portion of found petroleum initially in place contains manufacturing, reserves, and contingent sources; the rest is unrecoverable.
Reserves are estimated remaining portions of oil and pure gasoline and associated substances anticipated to be recoverable from recognized accumulations, as of a given date, primarily based on the evaluation of drilling, geological, geophysical, and engineering information; using established know-how; and specified financial circumstances, that are usually accepted as being affordable. Reserves are additional categorised in line with the extent of certainty related to the estimates and could also be subclassified primarily based on growth and manufacturing standing. [Reserves are further defined below].
Contingent Assets are these portions of petroleum estimated, as of a given date, to be probably recoverable from recognized accumulations utilizing established know-how or know-how below growth, however which aren’t presently thought of to be commercially recoverable on account of a number of contingencies. Contingencies could embody components corresponding to financial, authorized, environmental, political, and regulatory issues, or an absence of markets. Additionally it is applicable to categorise as contingent sources the estimated found recoverable portions related to a challenge within the early analysis stage. Contingent Assets are additional categorised in accordance with the extent of certainty related to the estimates and could also be subclassified primarily based on challenge maturity and/or characterised by their financial standing.
Undiscovered Petroleum Initially-In-Place (equal to undiscovered sources) is that amount of petroleum that’s estimated, on a given date, to be contained in accumulations but to be found. The recoverable portion of undiscovered petroleum initially in place is known as “potential sources,” the rest as “unrecoverable.”
Potential Assets are these portions of petroleum estimated, as of a given date, to be probably recoverable from undiscovered accumulations by utility of future growth initiatives. Potential sources have each an related probability of discovery and an opportunity of growth. Potential Assets are additional subdivided in accordance with the extent of certainty related to recoverable estimates assuming their discovery and growth and could also be subclassified primarily based on challenge maturity.
There isn’t a certainty that any portion of the sources will likely be found. If found, there is no such thing as a certainty that it is going to be commercially viable to provide any portion of the sources. The important thing variables related to the analysis are porosity, reservoir thickness, strain, water saturation and gasoline composition which have rising uncertainty, each optimistic and destructive, with distance from present wells.
Reserves Knowledge
There are quite a few uncertainties inherent in estimating portions of tight oil, shale gasoline, and NGLs reserves and the longer term money flows attributed to such reserves. The reserve and related money circulation data set forth above are estimates solely. Typically, estimates of economically recoverable tight oil, shale gasoline, and NGLs reserves and the longer term web money flows therefrom are primarily based upon quite a few variable components and assumptions, corresponding to historic manufacturing from the properties, manufacturing charges, final reserve restoration, timing and quantity of capital expenditures, marketability of oil and pure gasoline, royalty charges, the assumed results of regulation by governmental companies and future working prices, all of which can range materially.
Particular person properties could not mirror the identical confidence stage as estimates of reserves for all properties as a result of results of aggregation.
This information launch accommodates estimates of the web current worth of the Firm’s future web income from its reserves. Such quantities don’t symbolize the honest market worth of the Firm’s reserves.
The reserves information contained on this information launch has been ready in accordance with Nationwide Instrument 51-101 (“NI 51-101”).
Reserves are estimated remaining portions of oil and pure gasoline and associated substances anticipated to be recoverable from recognized accumulations, as of a given date, primarily based on the evaluation of drilling, geological, geophysical and engineering information; using established know-how, and specified financial circumstances, that are usually accepted as being affordable. Reserves are categorised in line with the diploma of certainty related to the estimates as follows:
Proved Reserves are these reserves that may be estimated with a excessive diploma of certainty to be recoverable. It’s possible that the precise remaining portions recovered will exceed the estimated proved reserves.
Possible Reserves are these further reserves which can be much less sure to be recovered than proved reserves. It’s equally possible that the precise remaining portions recovered will likely be larger or lower than the sum of the estimated proved plus possible reserves.
Preliminary Manufacturing Charges
The D5-19 Decrease Montney nicely was tied into the 16-03 facility, and produced a mean price of 546 bbl/d oil, 2,659 mcf/d pure gasoline, and 48 bbl/d NGLs, for a complete common price of 1,037 boe/d, on a gross sales foundation, over the primary 30 days of in-line manufacturing (IP30)
The E5-19 Decrease Montney nicely was tied into the 16-03 facility, and produced a mean price of 854 bbl/d oil, 2,660 mcf/d pure gasoline, and 49 bbl/d NGLs, for a complete common price of 1,346 boe/d, on a gross sales foundation, over the primary 30 days of in-line manufacturing (IP30)
The F5-19 Decrease Montney nicely was tied into the 16-03 facility, and produced a mean price of 745 bbl/d oil, 3,121 mcf/d pure gasoline, and 58 bbl/d NGLs, for a complete common price of 1,037 boe/d, on a gross sales foundation, over the primary 22 days of in-line manufacturing
Any references to peak charges, take a look at charges, IP30, IP90, IP180 or preliminary manufacturing charges or declines are helpful for confirming the presence of hydrocarbons, nevertheless, such charges and declines will not be determinative of the charges at which such wells will proceed manufacturing and decline thereafter and will not be indicative of long-term efficiency or final restoration. IP30 is outlined as a mean manufacturing price over 30 consecutive days, IP90 is outlined as a mean manufacturing price over 90 consecutive days and IP180 is outlined as a mean manufacturing price over 180 consecutive days. Readers are cautioned to not place reliance on such charges in calculating mixture manufacturing for the Firm.
Mr. Robert J. Zakresky
President and Chief Govt Officer
Mr. Nolan Chicoine
Vice President, Finance and Chief Monetary Officer
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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