Logan Energy Corp. press release

LOGAN ENERGY CORP. INCREASES 2026 PRODUCTION GUIDANCE FOLLOWING STRONG FIRST HALF RESULTS AND EXPANDS CAPITAL BUDGET

2026-07-06

TSXV - TSX Venture Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada · Production & Operations

Canada NewsWire

CALGARY, AB, July 6, 2026/CNW/ - Logan Energy Corp. (TSXV: LGN) ("Logan" or the "Company") is pleased to announce increased 2026 production guidance, an expanded 2026 capital budget and an update on recent operational performance and land acquisitions.

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UPDATED GUIDANCE HIGHLIGHTS

Increased 2026 average production guidance to 17,000 to 18,000 BOE/d, up 1,000 BOE/d from previous guidance of 16,000 to 17,000 BOE/d. The 2026 guidance midpoint of 17,500 BOE/d delivers 34% growth over 2025 annual average production of 13,088 BOE/d.

Second half 2026 production guidance increased to 19,000 to 20,000 BOE/d (previously 18,000 to 19,000 BOE/d), reflecting continued growth momentum. The expanded capital program is expected to meaningfully strengthen the Company's 2026 exit rate and will also have a significant impact on our 2027 production base. Increased forecast Adjusted Funds Flow to $164 million from $139 million. Expanded the 2026 capital budget by $55 million to $230 to $240 million from $175 to $185 million: Added five net wells to the 2026 program, consisting of three net wells at Pouce Coupe and two net wells at Simonette, all expected to be onstream in the fourth quarter of 2026. Advanced procurement of long-lead equipment for the North Simonette oil battery, with construction planned for the first quarter of 2027.

Forecast year-end Net Debt of $175 million.

"Strong first-half well performance has increased our confidence in the depth and quality of Logan's Montney inventory. While the recent pullback in oil prices has been sharper than many anticipated, we believe current prices do not fully reflect underlying supply and demand fundamentals, and our Montney wells deliver compelling returns across a range of commodity price scenarios. The expanded program accelerates our highest-return development at a point we see as an attractive entry into the cycle. At the same time, we have built deliberate flexibility into the program that allows us to respond quickly if prices weaken further and to protect the strength of our balance sheet," said Richard McHardy, Chief Executive Officer of Logan.

OPERATIONS UPDATE

Building on the operations update provided alongside first quarter results on May 12, 2026, Logan is pleased to provide the following operational updates:

Q2 Production: Based on field estimates, production for the second quarter of 2026 is expected to average approximately 17,000 BOE/d (61.8 mmcf/d, 1,200 bbls/d of NGLs and 5,500 bbls/d of oil and condensate). Pouce Coupe 7-12 Pad (3.0 net wells): Three wells targeting Lower Middle Montney (D1) oil were placed onstream May 2, 2026. Initial results are exceeding expectations with the pad averaging 668 bbls/d of oil, 84 bbls/d of NGLs and 2.7 mmcf/d of natural gas (1,202 BOE/d, 63% liquids) per well for the first 30 days on production. Pouce Coupe 15-15 Pad (3.0 net wells):Three wells targeting Lower Middle Montney (D1) oil were placed onstream May 23, 2026. Early performance has been strong and meeting expectations with the pad averaging 383 bbls/d of oil, 48 bbls/d of NGLs and 1.6 mmcf/d of natural gas (705 BOE/d, 61% liquids) per well for the first 30 days on production. Pouce Coupe Drilling:The drilling rig has returned to the 15-15 Pad to add a three well phase as part of the expanded budget scope. This second phase of 15-15 is expected to be onstream at the beginning of October 2026. Simonette 16-13 Pad (4.0 net wells):Drilling operations in Simonette resumed in June following spring breakup. With the budget expansion, the 16-13 Pad increased from 2.0 to 4.0 net wells. Completion operations are scheduled for September, with onstream planned prior to the end of October of this year. Simonette 6-9 Pad (3.0 net wells): The pad is awaiting completion operations which are scheduled later this month, with the wells expected to be onstream in September 2026. South Simonette Oil Battery (13-22): Construction of the battery is underway, with completion of construction and commissioning scheduled for September 2026 to facilitate the production ramp up in South Simonette.

Strong first-half operational performance, together with improved oil prices, supports Logan's increased production guidance and expanded 2026 capital budget.

LAND ACQUISITIONS

During the second quarter of 2026, Logan acquired 47.1 net sections of Montney acreage in Simonette. These acquisitions significantly consolidate Logan's Simonette Montney land base. The expanded Logan land position is illustrated in an updated corporate presentation available on the Company's website. As a result of these land acquisitions, Logan has added 99.4 net drilling locations and increased its acreage by 17% in the Simonette Montney.

EXPANDED 2026 BUDGET AND UPDATED GUIDANCE

Logan's Board of Directors has approved an expanded capital budget of $230 to $240 million, compared to previous guidance of $175 to $185 million. The expanded budget reflects the addition of five net wells drilled, completed and onstream as well as capital to procure long lead equipment for construction of the North Simonette oil battery planned in the first quarter of 2027.

The incremental five wells added to the expanded budget consist of three wells in Pouce Coupe and two wells in Simonette. All five wells are expected to come onstream in the fourth quarter of 2026. The investment in the North Simonette battery will serve to structurally improve capital efficiencies and enable long term growth in Simonette.

Logan is now forecasting average 2026 production of 17,000 to 18,000 BOE/d, an increase of 1,000 BOE/d from previous 2026 guidance of 16,000 to 17,000 BOE/d. The increased 2026 production forecast reflects both outperformance from the first half of the 2026 program and expanded budget activity delivering additional volumes in the fourth quarter. Second half 2026 production is now forecasted to average 19,000 to 20,000 BOE/d, compared to previous guidance of 18,000 to 19,000 BOE/d.

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

| For the year ending December 31, 2026 | Updated Guidance(1) | Previous Guidance(1) | Change | % | | 2026 average production (BOE/d) (2) | 17,000 – 18,000 | 16,000 – 17,000 | 1,000 | 6 | | % Liquids | 41 % | 42 % | (1) % | (2) | | H2 2026 average production (BOE/d) (2) | 19,000 – 20,000 | 18,000 – 19,000 | 1,000 | 5 | | % Liquids | 44 % | 44 % | - | - | | Forecast Average Commodity Prices (3)(5) | | | | | | WTI crude oil price (US$/bbl) | 76.03 | 60.00 | 16.03 | 27 | | MSW crude oil price (CA$/bbl) | 103.31 | 78.48 | 24.83 | 32 | | AECO natural gas price ($/GJ) | 1.97 | 3.00 | (1.03) | (34) | | Average exchange rate (CA$/US$) | 1.39 | 1.40 | (0.01) | (1) | | Operating Netback, after hedging ($/BOE) (2)(4)(5) | 29.09 | 27.07 | 2.02 | 7 | | Adjusted Funds Flow ($MM) (2)(4) | 164 | 139 | 25 | 18 | | AFF per share, basic (4) | 0.24 | 0.20 | 0.04 | 20 | | Capital Expenditures before A&D ($MM) (4) | 230 – 240 | 175 – 185 | 55 | 31 | | Acquisitions | 79 | 66 | 13 | 20 | | Net Debt, end of year ($MM) (4) | 175 | 129 | 46 | 36 | | Common shares outstanding, end of year (MM) (6) | 692 | 692 | - | - |

| (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. Previous guidance for 2026 was published in the Company's press release dated February 19, 2026, updated for the upsized equity financing and exercise of the overallotment option to $70.0 million as announced on February 20, 2026 and March 10, 2026. | | (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) | Forecast average commodity prices are based on actualized pricing for the first half of 2026 and average forecast pricing of US$70.00/bbl for WTI crude oil and $2.00/GJ for AECO natural gas for the second half of 2026. | | (4) | "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. | | (5) | A summary of outstanding commodity price risk management contracts is provided under the heading "Reader Advisories - Assumptions for Guidance – Commodity Hedging". | | (6) | Refer to additional information regarding outstanding dilutive securities under the heading of "Share Capital" in this press release. |

ABOUT LOGAN ENERGY CORP.

Logan is a growth-oriented exploration, development and production company formed through the spin-out of the early stage Montney assets of Spartan Delta Corp. Logan has three high quality and opportunity rich Montney assets located in the Simonette and Pouce Coupe areas of northwest Alberta and the Flatrock area of northeastern British Columbia. Additionally, the Company has 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 July 2026 and 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 May 12, 2026, 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 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

Throughout this press release, references to "Net Debt" 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 assets less current liabilities, 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 Updated Guidance are summarized below.

| Production Guidance | Updated Guidance (1) | Previous Guidance (1) | % | | Crude Oil (bbls/d) | 5,819 | 5,577 | 4 | | Condensate (bbls/d) | 252 | 281 | (10) | | Crude oil and condensate (bbls/d) | 6,071 | 5,858 | 4 | | NGLs (bbls/d) | 1,144 | 1,034 | 11 | | Natural gas (mcf/d) | 61,711 | 57,645 | 7 | | Combined average (BOE/d) | 17,500 | 16,500 | 6 | | % Liquids | 41 % | 42 % | (2) | | Financial Guidance ($/BOE) | | | | | Oil and gas sales (2) | 45.57 | 41.22 | 11 | | Processing and other revenue | 0.36 | 0.22 | 64 | | Royalties | (3.97) | (3.53) | 12 | | Transportation expenses (2) | (2.64) | (2.01) | 31 | | Operating expenses | (8.45) | (8.84) | (4) | | Operating Netback, before hedging | 30.87 | 27.06 | 14 | | Realized gain (loss)on derivatives | (1.78) | 0.01 | nm | | Operating Netback, after hedging | 29.09 | 27.07 | 7 | | General and administrative expenses | (1.30) | (1.38) | (6) | | Financing expenses | (1.92) | (2.31) | (17) | | Decommissioning obligations | (0.26) | (0.28) | (7) | | Adjusted Funds Flow | 25.61 | 23.10 | 11 |

| (1) | Based on the midpoint of the 2026 forecast. | | (2) | As of April 1, 2026, Logan entered into new marketing arrangements that resulted in certain oil and NGLs pipeline tariffs being presented as transportation expenses rather than as a reduction to oil and gas sales. This presentation change resulted in an increase to annualized transportation costs of $0.80/BOE, offset by an increase to forecasted realized pricing for oil and NGLs. The new marketing arrangements had a positive impact on the Company's forecasted annual Operating Netback by $0.27/BOE. |

Planned Activity

| Area | Net (Gross)

Wells Drilled (1) | Net (Gross)

Wells Completed (1) | Net (Gross)

Wells Onstream (1) | | Simonette | 7 (7) | 7.7 (8) | 7.7 (8) | | Pouce Coupe | 11 | 11 | 11 | | Flatrock | - | 1 | - |

| (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 updated 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 for the second half of 2026 of a US$5/bbl change in the forecasted WTI crude oil price, a $0.25/GJ change in the forecasted AECO natural gas price, and a $0.01 change in the forecasted CA$/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$65.00/bbl | US$70.00/bbl | US$75.00/bbl | CA$/US$ | FX Impact | | $1.75/GJ | ($6.8) | ($2.0) | $2.8 | 1.39 | ($0.5) | | $2.00/GJ | ($4.8) | - | $4.8 | 1.40 | - | | $2.25/GJ | ($2.9) | $2.0 | $6.8 | 1.41 | $0.5 |

Commodity Hedging

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

| Commodity /

Contract Type | Notional

Volume | Reference

Price | Fixed

Contract Price | Remaining

Term | | FX - swap | US$2.1MM - $2.2MM per month (1) | CA$/US$ | $1.3703 | January 1 to December 31, 2027 | | Crude oil – swap | 3,000 bbls/d | WTI | CA$83.63 per barrel | July 1 to December 31, 2026 | | Crude oil – swap | 1,000 bbls/d | WTI | US$70.65 per barrel | January 1 to December 31, 2027 | | Natural gas – swap | 30,000 GJ/d | AECO | CA$2.82 per GJ | July 1 to October 31, 2026 | | Natural gas – swap | 30,000 GJ/d | AECO | CA$3.50 per GJ | November 1, 2026 to March 31, 2027 | | Natural gas – swap | 15,000 GJ/d | AECO | CA$2.64 per GJ | April 1 to October 31, 2027 | | Natural gas – swap | 10,000 GJ/d | AECO | CA$3.33 per GJ | November 1, 2027 to March 31, 2028 |

| (1) | The foreign exchange swap notional volumes mirror the 2027 crude oil swap to effectively convert the 1,000 bbls/d hedged at US$70.65/bbl to CA$96.81/bbl. |

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.