LOGAN ENERGY CORP. ANNOUNCES 2026 BUDGET AND OPERATIONS UPDATE

2026-01-05

TSXV - TSX Venture Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada

Canada NewsWire

CALGARY, AB, Jan. 5, 2026/CNW/ -Logan Energy Corp.(TSXV: LGN) ("Logan" or the "Company") is pleased to announce its budget and guidance for 2026 and to provide an operations update.

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2026 BUDGET

Logan is pleased to provide details of its budget for 2026, which is focused on delivering disciplined production growth and advancing certain strategic projects while maintaining balance sheet strength through a weaker oil price environment.

Logan's Board of Directors has approved a 2026 capital expenditure budget of $140to $150 millionwhich is expected to deliver production between 15,000 to 16,000 BOE/d. 2026 average production is projected to grow by approximately 19% and unit operating and transport costs are forecast to decrease by 10% compared to 20251. The budget and planned activities are designed to maintain flexibility such that capital can be reduced or increased depending on commodity prices throughout the year.

The drilling, completion and equipping of wells comprises $105 millionof the budget which is focused on:

Pouce Coupe:

Seven (7.0 net) oil weighted wells at Pouce Coupein the D1 Lower Middle Montney. One (1.0 net) gas weighted location in the north part of Pouce Coupein the D1 Lower Middle Montney ("3-15 Well"); North Pouce CoupeD1 inventory is currently unbooked with considerable follow up inventory. One (1.0 net) gas weighted location in the Upper Montney ("6-18 Well"). The Pouce Coupe Upper Montney is unbooked and incremental to Logan's disclosed inventory, and has the potential to extend Pouce Coupeinventory life to ~20 years.

Simonette:

Five (2.5 net) Lower Montney oil locations at South Simonette. Completion of one (0.7 net) Spirit River Deep Basin location (Wilrich strandplain play) of which drilling of the well was accelerated into the fourth quarter of 2025. Logan's Spirit Riverinventory is currently unbooked and incremental to Logan's disclosed inventory with considerable running room in Simonette.

Infrastructure, land, contingency and other capital constitute $40 millionof the budget with the following key projects:

Construction of a South Simonette oil battery and compressor station which will enable further growth from South Simonette. This facility is a key project in achieving Logan's long term growth forecast for Simonette of 16,000 to 23,000 BOE/d, and is expected to improve capital efficiencies on future locations by reducing the wellsite equip scope and reducing the gathering system pressures. Expansion of the Pouce Coupe4-19 gas plant, including increasing compression capacity by approximately 10 mmcf/d to 50 mmcf/d as well as centralized H2S treating and other minor optimizations.

| _ | | 1Based on forecast average production of approximately 13,000 BOE/d for 2025. Refer to the November 12, 2025 press release for additional discussion related to revised 2025 production guidance. |

The Company's guidance for 2026 is summarized as follows:

| For the year ending December 31, 2026 | 2026 Guidance(1) | | 2026 average production (BOE/d) (2) | 15,000 – 16,000 | | % Liquids | 39 % | | H2 2026 average production (BOE/d) (2) | 16,500 – 17,500 | | % Liquids | 41 % | | Forecast Average Commodity Prices (4) | | | WTI crude oil price (US$/bbl) | 60.00 | | AECO natural gas price ($/GJ) | 3.00 | | Average exchange rate (CA$/US$) | 1.40 | | Operating Netback, after hedging ($/BOE) (2)(3)(4) | 25.35 | | Adjusted Funds Flow ($MM) (2)(3) | 120 | | AFF per share, basic (3) | 0.20 | | Capital Expenditures before A&D ($MM) (3) | 140 – 150 | | Net Debt, end of year ($MM) (3) | 116 | | Common shares outstanding, end of year (MM) (5) | 596 |

| (1) | The financial performance measures included in the Company's guidance for 2026 are based on the midpoint of the average production and capital expenditure forecast. | | (2) | Additional information regarding the assumptions used in the forecasts of average production, Operating Netback and Adjusted Funds Flow are provided under "Reader Advisories" below. | | (3) | "Operating Netback, after hedging", "Adjusted Funds Flow", "AFF per share", "Capital Expenditures before A&D" and "Net Debt" do not have standardized meanings under IFRS Accounting Standards, see "Non-GAAP Measures and Ratios" section of this press release. | | (4) | A summary of outstanding commodity price risk management contracts is provided under the heading "Reader Advisories - Assumptions for Guidance – Commodity Hedging". | | (5) | Refer to additional information regarding outstanding dilutive securities under the heading of "Share Capital" in this press release. |

OPERATIONS UPDATE

In December, Logan drilled its first two wells at Flatrock, marking an important milestone in advancing this high potential Montneyasset. The wells drilled very efficiently with 10-day drills on average. The completion and tie-in capital for at least one well would be amongst the first scope to be added to the 2026 budget in the event commodity prices are supportive of an expanded budget. The rig moved from Flatrockand has spud the Pouce Coupe3-15 well.

A second rig began the Simonette campaign by drilling a Wilrich Spirit River well in December. With the strengthening of natural gas prices and weaker crude oil prices, Logan has the ability pivot capital accordingly across prospects in our portfolio. This well is a good example of the breadth of opportunity that exists within Logan's assets and the additional gas weighted inventory which has not been a focus over the previous two years of depressed natural gas prices. Following the Wilrich well, the rig is continuing on to the Lower Montney development drilling at South Simonette.

Production was steady during the balance of 2025, with field estimated production of approximately 15,200 BOE/d (39% liquids) on average for the fourth quarter of 2025.

ABOUT LOGAN ENERGY CORP.

Logan is a growth-oriented exploration, development and production company formed through the spin-out of the early stage Montneyassets of Spartan Delta Corp. Logan has three high quality and opportunity rich Montneyassets located in the Simonette and Pouce Coupeareas of northwest Albertaand the Flatrockarea of northeastern British Columbia. Additionally, the Company has recently established a position within the greater Kaybob Duvernay oil play with assets in the North Simonette, Ante Creek and Two Creeks areas. The management team brings proven leadership and a track record of generating excess returns in various business cycles.

Logan's corporate presentation has been updated as of January 2026and can be accessed on the Company's website at www.loganenergycorp.com.

READER ADVISORIES

Non-GAAP Measures and Ratios

This press release contains certain financial measures and ratios which do not have standardized meanings prescribed by International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards"), also known as Canadian Generally Accepted Accounting Principles ("GAAP"). As these non-GAAP financial measures and ratios are commonly used in the oil and gas industry, Logan believes that their inclusion is useful to investors. The reader is cautioned that these amounts may not be directly comparable to measures for other companies where similar terminology is used.

The non-GAAP measures and ratios used in this press release, represented by the capitalized and defined terms outlined below, are used by Logan as key measures of financial performance and are not intended to represent operating profits nor should they be viewed as an alternative to cash provided by operating activities, net income or other measures of financial performance calculated in accordance with IFRS.

The definitions below should be read in conjunction with the "Non-GAAP and Other Financial Measures" section of the Company's MD&A dated November 12, 2025, which includes discussion of the purpose and composition of the specified financial measures and detailed reconciliations to the most directly comparable GAAP financial measures.

Operating Income and Operating Netback

Operating Income, a non-GAAP financial measure, is a useful supplemental measure that provides an indication of the Company's ability to generate cash from field operations, prior to administrative overhead, financing and other business expenses. "Operating Income, before hedging" is calculated by Logan as oil and gas sales, net of royalties, plus processing and other revenue, less operating and transportation expenses. "Operating Income, after hedging" is calculated by adjusting Operating Income, before hedging for realized gains or losses on derivative financial instruments.

The Company refers to Operating Income expressed per unit of production as an "Operating Netback" and reports the Operating Netback before and after hedging, both of which are non-GAAP financial ratios. Logan considers Operating Netback an important measure to evaluate its operational performance as it demonstrates its field level profitability relative to current commodity prices.

Adjusted Funds Flow

Cash provided by operating activities is the most directly comparable measure to Adjusted Funds Flow. "Adjusted Funds Flow" is reconciled to cash provided by operating activities by excluding changes in non-cash working capital, adding back transaction costs on acquisitions (if applicable). Logan utilizes Adjusted Funds Flow as a key performance measure in the Company's annual financial forecasts and public guidance.

The Company refers to Adjusted Funds Flow expressed per unit of production as an "Adjusted Funds Flow Netback".

Adjusted Funds Flow per share ("AFF per share")

AFF per share is a non-GAAP financial ratio used by the Logan as a key performance indicator. The basic and/or diluted weighted average common shares outstanding used in the calculation of AFF per share is calculated using the same methodology as net income per share.

Capital Expenditures before A&D

"Capital Expenditures before A&D" is used by Logan to measure its capital investment level compared to the Company's annual budgeted capital expenditures for its organic drilling program. It includes capital expenditures on exploration and evaluation assets and property, plant and equipment, before acquisitions and dispositions. The directly comparable GAAP measure to capital expenditures is cash used in investing activities.

Net Debt (Surplus)

Throughout this press release, references to "Net Debt" or "Net Surplus" includes bank debt, net of "Adjusted Working Capital". Net Debt and Adjusted Working Capital are both non-GAAP financial measures. Adjusted Working Capital is calculated as current liabilities less current assets, excluding derivative financial instrument assets and liabilities and provisions and other liabilities. As of the date hereof, Adjusted Working Capital includes cash and cash equivalents, accounts receivable, prepaids and deposits, and accounts payable and accrued liabilities.

Supplementary Financial Measures

The supplementary financial measures used in this press release (primarily average sales price per product type and certain per BOE and per share figures) are either a per unit disclosure of a corresponding GAAP measure, or a component of a corresponding GAAP measure, presented in the financial statements. Supplementary financial measures that are disclosed on a per unit basis are calculated by dividing the aggregate GAAP measure (or component thereof) by the applicable unit for the period. Supplementary financial measures that are disclosed on a component basis of a corresponding GAAP measure are a granular representation of a financial statement line item and are determined in accordance with GAAP.

Assumptions for Guidance

The significant assumptions used in the forecast of Operating Netbacks and Adjusted Funds Flow for the Company's 2026 Guidance are summarized below.

| Production Guidance | 2026 Guidance (1) | | Crude Oil (bbls/d) | 4,518 – 4,820 | | Condensate (bbls/d) | 303 – 322 | | Crude oil and condensate (bbls/d) | 4,821 – 5,142 | | NGLs (bbls/d) | 960 – 1,024 | | Natural gas (mcf/d) | 55,313 – 59,001 | | Combined average (BOE/d) | 15,000 – 16,000 | | % Liquids | 39 % | | Financial Guidance ($/BOE) | | | Oil and gas sales | 39.20 | | Processing and other revenue | 0.37 | | Royalties | (3.31) | | Transportation expenses | (2.25) | | Operating expenses | (8.75) | | Operating Netback, before hedging | 25.26 | | Realized gain (loss) on derivatives | 0.09 | | Operating Netback, after hedging | 25.35 | | General and administrative expenses | (1.68) | | Financing expenses | (2.18) | | Decommissioning obligations | (0.30) | | Adjusted Funds Flow | 21.19 |

| (1) | The financial performance measures included in the Company's guidance for 2026 is based on the midpoint of the average production and capital expenditure forecast. |

Planned Activity

| Area | Net (Gross) Wells Drilled (1) | Net (Gross) Wells Completed (1) | Net (Gross) Wells Onstream (1) | | Simonette | 2.5 (5) | 3.2 (6) | 3.2 (6) | | Pouce Coupe | 9 | 9 | 9 |

| (1) | Net and gross well counts are the same if not otherwise noted. |

Guidance Sensitivities

Changes in forecast commodity prices, exchange rates, differences in the amount and timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in Logan's guidance for 2026. The Company's actual results may differ materially from these estimates. Holding all other assumptions constant, the table below shows the impact to forecasted Adjusted Funds Flow of a US$5/bbl change in the WTI crude oil price, a $0.25/GJ change in the AECO natural gas price, and a $0.01change in the CA$/US$ exchange rate. Assuming capital expenditures are unchanged, an increase (decrease) in Adjusted Funds Flow will result in an equivalent decrease (increase) in forecasted Net Debt.

| Year Ending December 31, 2026 – Change in Adjusted Funds Flow ($MM) | | | | | | | AECO / WTI | US$55.00/bbl | US$60.00/bbl | US$65.00/bbl | CA$/US$ | FX Impact | | $2.75/GJ | ($11) | ($3) | $5 | 1.39 | ($1) | | $3.00/GJ | ($8) | - | $8 | 1.40 | - | | $3.25/GJ | ($5) | $3 | $10 | 1.41 | $1 |

Commodity Hedging

The following table summarizes the Company's financial risk management contracts in place as of the date hereof:

Other Measurements

All dollar figures included herein are presented in Canadian dollars, unless otherwise noted. This press release contains various references to the abbreviation "BOE" which means barrels of oil equivalent. Where amounts are expressed on a BOE basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet (mcf) per barrel (bbl). The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is significantly different than the value ratio based on the current price of crude oil and natural gas. This conversion factor is an industry accepted norm and is not based on either energy content or current prices. Such abbreviation may be misleading, particularly if used in isolation.

References to "oil" or "crude oil" in this press release include light crude oil, medium crude oil, heavy oil and tight oil combined. NI 51-101 includes condensate within the product type of "natural gas liquids". References to "natural gas liquids" or "NGLs" include pentane, butane, propane and ethane. References to "gas" or "natural gas" relates to conventional natural gas. References to "liquids" includes crude oil, condensate and NGLs. The Company has disclosed "condensate" separately from other natural gas liquids in this press release since the price of condensate as compared to other natural gas liquids is currently significantly higher and the Company believes that this presentation provides a more accurate description of its operations and results.

This press release discloses Pouce Coupeand Simonette drilling inventory in two categories: (a) booked locations; and (b) unbooked locations. Booked locations are derived from the oil and gas reserves evaluation as of December 31, 2024as prepared by the Company's independent qualified reserves evaluator, McDaniel & Associates Consultants Ltd., in accordance with the definitions, standards and procedures contained in the most recent publication of the COGEH and NI 51-101 and account for drilling locations that have associated proved and/or probable reserves, as applicable. Unbooked locations are internal estimates based on the Company's assumptions 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. Unbooked locations have been identified by management as an estimation of Logan's multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that the Company will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which the Company actually drills wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by 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 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.

Share Capital

Common shares of Logan trade on the TSX Venture Exchange ("TSXV") under the symbol "LGN".

As of the date hereof, there are 595.7 million common shares outstanding. There are no preferred shares or special shares outstanding. Logan's convertible securities outstanding as of the date of this press release include: 64.3 million common share purchase warrants with an exercise price of $0.35per share expiring July 12, 2028; and 42.7 million stock options with an exercise price of $0.78 per share and an average remaining term of 3.5 years.

Forward-Looking and Cautionary Statements

Certain statements contained within this press release constitute forward-looking statements within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "outlook", "anticipate", "budget", "plan", "endeavor", "continue", "estimate", "evaluate", "expect", "forecast", "monitor", "may", "will", "can", "able", "potential", "target", "intend", "consider", "focus", "identify", "use", "utilize", "manage", "maintain", "remain", "result", "cultivate", "could", "should", "believe" and similar expressions (or grammatical variations or negatives thereof). Logan believes that the expectations reflected in such forward-looking statements are reasonable as of the date hereof, but no assurance can be given that such expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Without limitation, this press release contains forward-looking statements pertaining to: the business plan, objectives and strategy of Logan; the Company's opportunity rich assets; the success of the Company's growth plan; the Company's capital program, budget and guidance for 2026 and components thereof, including flexibility to reduce or increase capital spending depending on commodity prices throughout the year; Logan's booked and unbooked drilling inventory and the potential to increase drilling inventory, including the potential to increase Pouce Coupeinventory life to ~20 years; growth forecast for Simonette of 16,000 to 23,000 BOE/d enabled by the completion of the South Simonette oil battery and compressor station; the ability to improve future capital efficiencies; expansion of compression capacity at the Pouce Coupe4-19 gas plant; and commodity hedging.