Freehold Royalties Ltd. press release

LOGAN ENERGY CORP. ANNOUNCES 2024 FINANCIAL RESULTS AND RESERVES, AND PROVIDES AN OPERATIONS UPDATE

2025-03-19

TSX - Toronto Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · Potash · Canada

Canada NewsWire

CALGARY, AB , March 19, 2025 /CNW/ - Logan Energy Corp. (TSXV: LGN) (" Logan " or the " Company ") announces its financial and operating results for the fourth quarter and year ended December 31, 2024 , the results of the 2024 year end reserves evaluation, and provides an operations update.

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Selected financial and operational information set out below should be read in conjunction with the Company's audited annual financial statements and related management's discussion and analysis (" MD&A ") as at and for the years ended December 31, 2024 and 2023. In addition, readers are also directed to the Company's Annual Information Form (" AIF ") for the year ended December 31, 2024 , dated March 19, 2025 . These documents are filed on SEDAR+ at www.sedarplus.ca and are available on the Company's website at www.loganenergycorp.com . The highlights reported throughout this press release include certain non-GAAP measures and ratios which have been identified using capital letters and are defined herein. The reader is cautioned that these measures may not be directly comparable to other issuers; refer to additional information under the heading "Reader Advisories – Non-GAAP Measures and Ratios" .

2024 FINANCIAL AND OPERATING HIGHLIGHTS

The Company is pleased to report its financial and operating results for 2024 which represent Logan's first full year of operations following the spin-out from Spartan Delta Corp. (" Spartan ") on June 20 , 2023.

Logan successfully executed on its stated growth strategy and delivered 51% production growth from 6,455 BOE per day (31% liquids) in H2 2023 to average 9,734 BOE per day (33% liquids) in H2 2024. Calendar year average production of 8,447 BOE per day (34% liquids) was in-line with previously released guidance of 8,400 BOE per day for 2024. Year-over-year the Company more than doubled its crude oil production and increased its liquids weighting by 26% to average 34% of production in 2024 compared to 27% in 2023. The Company achieved a 21% increase in its Operating Netback which averaged $19.13 per BOE (after hedging) in 2024, despite AECO natural gas prices being approximately 50% lower on average compared to 2023. In addition to realizing a significant reduction of per unit operating, transportation and royalty expenses, the improvement in Operating Netback was achieved through focused growth of the Company's oil/liquids weighted assets, which, together with strong crude oil prices, mostly mitigated the impact of lower natural gas prices on Logan's average realized price for 2024 compared to 2023. While crude oil prices weakened in the fourth quarter of 2024 compared to the first nine months of the year, Logan's Operating Netback increased to $20.79 per BOE (after hedging) as the Company realized further reductions in its per unit cash costs in the current quarter.

Adjusted Funds Flow was $16.7 million for the fourth quarter and $52.9 million for the year ended December 31, 2024 , an increase of 80% from $29.3 million in the previous year. Capital Expenditures before A&D were $151.2 million in 2024, of which Logan spent $6.9 million on land and seismic, $92.6 million on drilling and completions, $48.2 million on facilities, pipelines and well equipment, and $3.5 million on production optimization and other assets. Capital incurred in 2024 was $6.2 million less than Logan's budget/guidance of $157.4 million for the 2024 calendar year, however the shortfall is primarily due to timing and this capital has been reallocated to the 2025 budget year. At Pouce Coupe, Logan drilled, completed, and brought a three well pad on production. The Company added compression and pipeline infrastructure in the area and importantly, commenced construction of a 40 mmcf/d gas plant, compressor station and oil battery (the " Pouce 4-19 Facility "). The Pouce 4-19 Facility, along with associated gathering and sales pipelines, are expected to be commissioned in the second quarter of 2025 and provides capacity to ~10,000 BOE per day. In the greater Simonette area, Logan brought four wells on production including a three well pad at South Simonette and a single exploratory well on the western block of acreage at Lator. Three additional wells were drilled in the fourth quarter and will be completed and brought on production in the first quarter of 2025. The Company completed several facility debottlenecking projects in the Simonette area, including the addition of water disposal and liquids pipeline infrastructure which contributed to lower operating expenses and reduced trucking costs. Logan expanded its position in the greater Kaybob Duvernay oil play through Crown land acquisitions at Two Creeks and North Simonette and drilled an initial land earning well at Ante Creek which will be completed in 2025.

On December 17, 2024 , Logan closed the acquisition of certain crude oil and natural gas assets located in the Simonette area for total cash consideration of $60.2 million after estimated closing adjustments (the " Acquisition "). The acquired assets are contiguous with the Company's existing Simonette core area and add top tier Montney oil inventory, in addition to providing strong synergies and capital efficiencies with Logan's owned infrastructure. Production from the acquired assets was approximately 795 BOE per day (48% liquids) at the time of closing the Acquisition and did not contribute meaningfully to Logan's 2024 average production and cash flows with only 15 days of operations in the current reporting period.

Logan is committed to maintaining a strong balance sheet: During the fourth quarter of 2024, the Company raised $95.0 million of gross proceeds through upsized bought-deal private placements of an aggregate of 130.1 million common shares at $0.73 per common share. Logan exited 2024 with Net Debt of $27.8 million or 0.4 times its annualized Adjusted Funds Flow for the fourth quarter. As at December 31, 2024 , the Company had $2.2 million of bank debt drawn on its credit facilities with aggregate borrowing capacity of $125.0 million . Subsequently in 2025, the Company announced strategic dispositions to generate $43.0 million of combined gross proceeds by monetizing a 2.5% gross overriding royalty on its Pouce Coupe property and agreeing to sell a 35% non-operated working interest in the Pouce 4-19 Facility upon commissioning.

The following table summarizes selected highlights for the three months and years ended December 31, 2024 and December 31, 2023 :

| | Three months ended December 31 | Year ended December 31 | | | | | | (CA$ thousands, except as otherwise noted) | 2024 | 2023 | % | 2024 | 2023 | % | | FINANCIAL HIGHLIGHTS | | | | | | | | Oil and gas sales | 29,013 | 28,653 | 1 | 110,536 | 78,858 | 40 | | Net income (loss) and comprehensive income (loss) | (150) | 11,391 | nm | 4,555 | (33,799) | nm | | $ per common share, basic and diluted | (0.00) | 0.02 | nm | 0.01 | (0.11) | nm | | Cash provided by operating activities | 12,004 | 11,176 | 7 | 50,431 | 23,954 | 111 | | Adjusted Funds Flow (1) | 16,689 | 15,392 | 8 | 52,919 | 29,347 | 80 | | $ per common share, basic (1) | 0.03 | 0.03 | - | 0.11 | 0.10 | 10 | | $ per common share, diluted (1) | 0.03 | 0.03 | - | 0.10 | 0.09 | 11 | | Capital Expenditures before A&D (1) | 38,588 | 40,568 | (5) | 151,243 | 80,406 | 88 | | Acquisitions | 60,247 | 151 | nm | 60,597 | 5,395 | nm | | Total assets | 365,450 | 234,638 | 56 | 365,450 | 234,638 | 56 | | Net Debt (Surplus) (1) | 27,815 | (43,468) | nm | 27,815 | (43,468) | nm | | Shareholders' equity | 275,357 | 174,116 | 58 | 275,357 | 174,116 | 58 | | Common shares outstanding (000s), end of period (2) | 595,675 | 465,537 | 28 | 595,675 | 465,537 | 28 |

| | Three months ended December 31 | Year ended December 31 | | | | | | (CA$ thousands, except as otherwise noted) | 2024 | 2023 | % | 2024 | 2023 | % | | OPERATING HIGHLIGHTS AND NETBACKS (5) | | | | | | | | Average daily production | | | | | | | | Crude oil (bbls/d) | 2,373 | 1,844 | 29 | 2,296 | 1,012 | 127 | | Condensate (bbls/d) (3) | 146 | 456 | (68) | 189 | 313 | (40) | | Natural gas liquids (bbls/d) (3) | 510 | 362 | 41 | 384 | 255 | 51 | | Natural gas (mcf/d) | 38,982 | 29,116 | 34 | 33,470 | 25,370 | 32 | | BOE/d | 9,526 | 7,515 | 27 | 8,447 | 5,808 | 45 | | % Liquids (4) | 32 % | 35 % | (9) | 34 % | 27 % | 26 | | Average realized prices, before financial instruments | | | | | | | | Crude oil ($/bbl) | 89.19 | 90.40 | (1) | 92.86 | 96.33 | (4) | | Condensate ($/bbl) (3) | 87.42 | 102.39 | (15) | 91.79 | 99.42 | (8) | | Natural gas liquids ($/bbl) (3) | 54.67 | 51.61 | 6 | 53.37 | 49.82 | 7 | | Natural gas ($/mcf) | 1.62 | 2.72 | (40) | 1.52 | 2.94 | (48) | | Combined average ($/BOE) | 33.11 | 41.44 | (20) | 35.75 | 37.19 | (4) | | Netbacks ($/BOE) (5) | | | | | | | | Oil and gas sales | 33.11 | 41.44 | (20) | 35.75 | 37.19 | (4) | | Processing and other revenue | 1.00 | 1.25 | (20) | 1.07 | 1.60 | (33) | | Royalties | (2.61) | (3.37) | (23) | (3.11) | (4.49) | (31) | | Operating expenses | (9.41) | (11.82) | (20) | (12.26) | (14.65) | (16) | | Transportation expenses | (2.15) | (3.87) | (44) | (2.87) | (3.81) | (25) | | Operating Netback, before hedging (5) | 19.94 | 23.63 | (16) | 18.58 | 15.84 | 17 | | Realized gain on derivative financial instruments | 0.85 | - | - | 0.55 | - | - | | Operating Netback, after hedging (5) | 20.79 | 23.63 | (12) | 19.13 | 15.84 | 21 | | General and administrative expenses | (1.31) | (2.58) | (49) | (1.81) | (2.73) | (34) | | Financing income (expenses) (6) | (0.33) | 1.35 | nm | 0.03 | 0.90 | (97) | | Settlement of decommissioning obligations | (0.11) | (0.13) | (15) | (0.23) | (0.16) | 44 | | Adjusted Funds Flow Netback (5) | 19.04 | 22.27 | (15) | 17.12 | 13.85 | 24 |

| (1) | "Adjusted Funds Flow", "Capital Expenditures before A&D", and "Net Debt (Surplus)" do not have standardized meanings under IFRS Accounting Standards, refer to "Non-GAAP Measures and Ratios" section of this press release. | | (2) | Refer to "Share Capital" section of this press release. | | (3) | Condensate is a natural gas liquid (" NGL ") as defined by NI 51-101. See "Other Measurements". | | (4) | "Liquids" includes crude oil, condensate and NGLs. | | (5) | "Netbacks" are non-GAAP financial ratios calculated per unit of production. "Operating Netback", and "Adjusted Funds Flow Netback" do not have standardized meanings under IFRS Accounting Standards. See "Non-GAAP Measures and Ratios". | | (6) | Excludes non-cash accretion of decommissioning obligations. | | (7) | Logan was spun-out from Spartan on June 20, 2023. Comparative information for the year ended December 31, 2023 is prepared on a "carve-out" basis from the historical records of Spartan. The information should be read in conjunction with the Company's audited annual financial statements and MD&A as at December 31, 2024 and 2023 and the audited annual financial statements and related MD&A as at and for the years ended December 31, 2023 and 2022. |

2024 RESERVES EVALUATION HIGHLIGHTS

Logan is pleased to provide below select highlights from the results of its oil and gas reserves evaluation as of December 31, 2024 (the " McDaniel Report "), as prepared by its independent qualified reserves evaluator, McDaniel & Associates Consultants Ltd. (" McDaniel "). The evaluation of Logan's properties was prepared in accordance with the definitions, standards and procedures contained in the most recent publication of the Canadian Oil and Gas Evaluation Handbook (" COGEH ") and National Instrument 51-101 – _Standards of Disclosure for Oil and Gas Activities _(" NI 51-101 "), and was based on the published average forecast pricing of three independent reserves evaluation firms (McDaniel, GLJ Ltd., Sproule Associates Limited). See _"Reader Advisories – Reserves Disclosure" _for more information. Additional reserves information as required under NI 51-101 is included in Logan's AIF for the year ended December 31, 2024 , which is filed on SEDAR+ at www.sedarplus.ca .

| RESERVES HIGHLIGHTS | December 31, 2024 | December 31, 2023 | % change | | Reserves Volumes (MBOE) | | | | | Proved developed producing (" PDP ") | 14,643 | 9,913 | 48 % | | Total Proved (" TP ") | 62,640 | 43,326 | 45 % | | Total proved plus probable (" TPP ") | 105,880 | 74,781 | 42 % | | NPV of Reserves, discounted at 10% before-tax ($MM) | | | | | Proved developed producing | 104 | 51 | 103 % | | Total Proved | 394 | 193 | 104 % | | Total proved plus probable | 755 | 393 | 92 % |

The Company delivered significant growth in reserves volumes across all categories in 2024. As at December 31, 2024 , Logan's PDP reserves of 14.6 MMBOE were up 79% after accounting for 2024 annual production of 3.1 MMBOE. TP reserves of 62.6 MMBOE were up 52% after accounting for 2024 production. TPP reserves of 105.9 MMBOE were up 46% after accounting for 2024 production. Logan added high quality oil weighted inventory through the Acquisition and targeted development of its oil/liquids assets during 2024, increasing the TPP corporate liquids weighting to 34% at year-end 2024, compared to 29% at year-end 2023. The net present value (" NPV ") of reserves, discounted at 10% before tax, more than doubled on a PDP and TP basis and increased by 92% on a TPP basis, driven by a material improvement in netbacks through operating and transportation cost reductions together with the increase in oil weighting. As at December 31, 2024 , the before-tax NPV discounted at 10% is $104.2 million on a PDP basis, $393.6 million on a TP basis, and $755.3 million on a TPP basis. The McDaniel Report continues to reflect the early stage of development of Logan's assets. The Company's current and future capital expenditures include significant infrastructure investments at Pouce Coupe and Simonette and forecast cash flows do not capture the full extent of further cost improvements and efficiencies anticipated with scale. On a fully diluted per share basis, the Company's Net Asset Value increased by 20% to $0.59 per share on a TP basis and by 31% to $1.14 per share on a TPP basis at year-end 2024 compared to 2023. Logan's 2024 capital investment program resulted in net reserves additions that replaced 2024 production by a factor of 2.5 times on a PDP basis, 7.2 times on a TP basis and 11.1 times on a TPP basis. The McDaniel Report includes future development capital (" FDC ") of $769.6 million in the TP category with 70.3 net locations, and $1.1 billion in the TPP category with 105.7 net locations assigned at Simonette and Pouce Coupe , of which Logan expects to drill 77.8 net locations within the next five years and 27.9 net locations thereafter. The Company has identified a drilling inventory of 654.3 net Montney locations (410.3 in Simonette and Pouce Coupe Alberta Montney ) and has booked 100.8 net locations (15% of Montney inventory and 25% of Alberta Montney inventory) within TPP reserves. Additionally, the Company has identified a drilling inventory of 154.0 net Duvernay locations and has booked 3.0 net locations (2% of Duvernay inventory).

At year-end 2024, the Company's reserve life index (" RLI ") is 4.7 times on a PDP basis, 20.3 times on a TP basis and 34.2 times on a TPP basis.

The following tables highlight the findings of the McDaniel Report. The numbers in the tables below may not add due to rounding.

Summary of Reserves Volumes as at December 31, 2024

The Company's reserves volumes and undiscounted FDC costs as at December 31, 2024 are summarized below:

| SUMMARY OF RESERVE VOLUMES (1) | Crude Oil

(Mbbls) | NGL (2)

(Mbbls) | Natural Gas

(MMcf) | Combined

(MBOE) | FDC Costs

($MM) | | Proved developed producing | 2,871 | 1,370 | 62,412 | 14,643 | 11 | | Proved developed non-producing | - | 20 | 889 | 168 | 0 | | Proved undeveloped | 13,868 | 2,307 | 189,926 | 47,829 | 758 | | Total Proved | 16,740 | 3,696 | 253,227 | 62,640 | 770 | | Probable | 13,813 | 2,132 | 163,767 | 43,240 | 372 | | Total Proved plus Probable | 30,553 | 5,828 | 416,993 | 105,880 | 1,141 |

| (1) Gross working interest reserves before royalty deductions. | | (2) Natural gas liquids include condensate volumes. |

Net Present Value of Future Net Revenue as at December 31, 2024

The following table summarizes the NPV of the Company's reserves (before-tax) as at December 31, 2024 . The reserves value on a $/BOE basis, discounted at 10% per year, is also summarized for each category.

| NET PRESENT VALUE | 0 % | 5 % | 10 % | 15 % | 20 % | Unit Value (1) Before Tax Discounted at 10%/Year ($/BOE) | | BEFORE-TAX | ($MM) | ($MM) | ($MM) | ($MM) | ($MM) | | | Proved developed producing | 88 | 107 | 104 | 99 | 93 | 8.13 | | Proved developed non-producing | 1 | 1 | 1 | 1 | 0 | 4.43 | | Proved undeveloped | 608 | 415 | 289 | 203 | 143 | 6.78 | | Total Proved | 697 | 523 | 394 | 302 | 236 | 7.08 | | Probable | 875 | 541 | 362 | 257 | 192 | 9.94 | | Total Proved plus Probable | 1,572 | 1,064 | 755 | 559 | 428 | 8.21 | | (1) Unit values are based on net reserves. Net reserves are the Company's working interest reserves after deduction of royalties, plus its royalty interests in reserves. | | | | | | |

Future Development Capital

The following table outlines estimated annual future development capital expenditures required to bring TP and TPP reserves on production per the McDaniel Report:

| FUTURE DEVELOPMENT CAPITAL | TP Reserves ($MM) | TPP Reserves ($MM) | | 2025 | 166 | 166 | | 2026 | 154 | 163 | | 2027 | 149 | 159 | | 2028 | 151 | 176 | | 2029 | 142 | 172 | | Thereafter | 8 | 304 | | Total FDC, undiscounted | 770 | 1,141 | | Total FDC, discounted at 10% | 621 | 843 |

OPERATIONS UPDATE AND OUTLOOK

Logan is executing a significant H1 capital program that is progressing well.

At Simonette, drilling and completion operations for the wells being brought onstream in 2025 are now complete. Four of the six planned gross Simonette wells have recently been placed onstream with initial results meeting or exceeding our budgeted type curves. The remaining two gross wells are expected to be put onstream by the end of March. These wells consist of:

11-22-061-27W5 pad, South Simonette – Middle Montney gas condensate, two well pad (100% WI) 06-06-064-25W5 pad, North Simonette – Duvernay oil and Montney oil, two well pad (100% WI) 16-13-061-01W6 pad, South Simonette – Lower Montney oil, two well pad (50% WI)

At Pouce Coupe , drilling operations and plant construction are ongoing. The rig is actively drilling on the first of two planned Pouce Coupe pads for the year, both targeting Montney oil. Planned commissioning of the Pouce 4-19 Facility remains on schedule for the second quarter 2025 with the production ramp driven by nine new (100% WI) wells scheduled by August 2025 .

Elsewhere, Logan is planning to complete and bring onstream its first Ante Creek Duvernay well this summer and to drill two wells at Flatrock in the fourth quarter of 2025.

Our guidance for 2025 average production of 13,650 BOE/d is unchanged. The Company's budget is also unchanged except to shift $6 million of capital that was initially planned for the fourth quarter of 2024 into the first quarter of 2025 bringing total Capital Expenditures before A&D to approximately $201 million for the 2025 calendar year (previously $195 million ).

The Company's operations have been, and in the future may be, affected by political developments and by national, federal, provincial, state and local laws and regulations such as restrictions on production, the imposition of tariffs, embargoes or export restrictions on the Company's products, including the tariffs on a variety of goods announced by the US government on March 4, 2025 and Canadian countermeasures subsequently announced, both of which are anticipated to evolve.

Logan has hedged 36% of its forecasted crude oil and condensate production (net of royalties) for 2025 at an average price of WTI ~US$71 /bbl (~CA$101/bbl). Additionally, Logan has hedged 31% of its forecasted natural gas production (net of royalties) at an average price of AECO $2.39 /GJ for calendar 2025. Refer to the Company's MD&A for details of commodity price risk management contracts outstanding.