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Coelacanth Energy Inc. (TSXV: CEI,OTC:CEIEF) ("Coelacanth" or the "Company") has provided an Operations Update, Reserve Report, and Resource Report.
OPERATIONS UPDATE
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Jupiter Energy
Investor Insight
Jupiter Energy’s strong cash flow, substantial proven recoverable reserves, and strategic foothold in resource-rich Kazakhstan present a compelling investment opportunity. Its commitment to sustainability—reinforced by a recent strategic investment in 100 percent gas utilization infrastructure—further enhances its long-term investor appeal.
Overview
Jupiter Energy Limited (ASX:JPR) is an established oil exploration and production company that operates three oilfields in Kazakhstan. The company is currently producing approximately 600 to 700 barrels of oil per day from its licensed fields, having successfully navigated Kazakhstan’s regulatory and operational landscape since 2008. Its operations are fully compliant, with its three full commercial production licenses secured until 2045/46/46.
Jupiter Energy is recognized as a reliable operator in Kazakhstan, holding 100 percent ownership of its licenses, which span approximately 123 sq km in the oil-rich Mangistau region. Strategically located near the port city of Aktau, its license area benefits from proximity to established oil processing facilities and extensive oil and gas infrastructure, including key pipeline connections to the country’s major refineries (see Figure 1).
The company has successfully navigated regulatory requirements to achieve full commercial production across its three oilfields—Akkar East, Akkar North (East Block), and West Zhetybai—all operating under 25-year commercial licenses. Jupiter’s strong compliance and operational framework reinforce its commitment to long-term, sustainable production in Kazakhstan.
Jupiter Energy’s reserve base has been independently confirmed by a Sproule International competent person’s report (CPR), effective 31 December 2023, detailing significant recoverable reserves.
According to the Sproule International CPR, released in January 2024, Jupiter Energy’s recoverable reserves under the SPE/PRMS classification are as follows:
- 1P Reserves: 14.691 million barrels (mmbbls)
- 2P Reserves: 36.487 mmbbls
- 3P Reserves: 46.796 mmbbls
These figures confirm Jupiter’s substantial reserve base, and correlate with its Kazakh State Approved Reserves which are recorded at approximately 52 mmbbls recoverable (using the GOST C1 + C2 classification methodology) (see Figure 2).
Figure 1: Total reserves for the Mangistau basin are estimated to be in excess of 5 billion barrels including two large oil fields, Uzen and Zhetybai.
On November 15, 2024, Jupiter Energy announced the completion of its gas pipeline integration project, connecting the Akkar East and Akkar North (East Block) oilfields to neighboring gas utilization facilities operated by its larger neighbour, MangistauMunaiGas (MMG). This integration ensures 100 percent utilization of all its associated gas, aligning with Kazakhstan’s environmental goals and enabling the Company to drill further wells whilst continuing to comply with Kazakhstan’s strict 100% gas utilisation policy.
The company plans to connect the West Zhetybai oilfield to this infrastructure as this oilfield is further developed. This project strengthens Jupiter’s relationships with MMG and the Kazakh Ministry of Energy, facilitating long-term production under its commercial licenses and enabling it to sell its oil into both the Kazakh domestic market as well as international oil markets.
Company Highlights
- Operating in Kazakhstan since 2008, with three oilfields under licence. The area is known as Block 36 (formerly Block 31).
- Holds commercial production licenses for all three of its oilfields, valid until 2045/2046/2046.
- Current production is approximately 640 barrels per day from four production wells, with plans to increase to approximately 1,000 barrels per day during 2025, with the drilling of a new production well (assuming success).
- Recent independent after-tax NPV of the oilfields (using a 20 percent discount) of US$180 million. This compares favourably to the Company’s current EV of approximately AU$63.5 million (~US$38 million) – based on a share price of AU$0.03 and balance sheet debt of ~$US15.1m.
- Operates in West Kazakhstan in the Mangistau region, a proven area for Kazakhstan’s oil reserves (see Figure 1).
- The company is cash flow positive at an operational level.
- Key shareholders include long term holders, Waterford (60 percent) and Blackbird Trust (21 percent).
- Jupiter’s recent strategic investment in its onfield gas utilisation infrastructure, signifies its commitment to sustainable operations, contribution to the welfare of the local community and support for Kazakhstan’s longer term commitment to a carbon free operating environment in the oil local industry.
Key Project: Block 36
Figure 2: Outline of Jupiter Energy’s oilfields located on Block 36
Block 36 is Jupiter Energy’s flagship project located in the Mangistau Basin of West Kazakhstan. Covering an area of approximately 123 sq km, it lies in a highly prospective region with proven oil reserves. The company acquired extensive 3D seismic data over the entire block and surrounding areas, totaling 235 sq km, which then enabled the identification of multiple drilling targets. The current reserve base covers 35 sq km, with further exploration targets available for drilling on the licence area, when funding for further exploration wells is available.
Jupiter has drilled nine wells on Block 36, targeting the Akkar North (East Block), Akkar East, and West Zhetybai oilfields (see Figure 3). The current production from Block 36 is approximately 640 barrels of oil per day, with plans to increase output to around 1,000 barrels per day during 2025, assuming success with the drilling of a new production well in 2H 2025. Further increases in production may also come via the workovers of existing wells and the drilling of further new wells, planned from 2025 to 2030.
Figure 3: Well locations on Block 36
At the helm of Jupiter Energy is a highly experienced corporate and technical leadership team, driving the company towards achieving its goals and increasing shareholder value.
Management Team
Geoff Gander - Chairman and CEO
Geoff Gander graduated from the University of Western Australia in 1984, where he completed a Bachelor of Commerce degree. He has been involved in the listing and running of public companies since 1994. He was appointed as a director of Jupiter Energy in January 2005 and he is currently responsible for the overall operational leadership of the company, as well as investor relations and group corporate development.
Baltabek Kuandykov - Non-executive Director
Baltabek Kuandykov is currently the president of Meridian Petroleum, a privately held Kazakh oil & gas company. He was formerly the president of Nelson Resources, an oil development and production company operating in Kazakhstan which was listed on the Toronto Stock Exchange until its acquisition by Lukoil in 2005. Kuandykov has considerable experience in the oil and gas industry in the region, having served as president of Kazakhoil (predecessor of the Kazakh State oil company KazMunaiGas), and is a well-respected consultant to Chevron Overseas Petroleum on CIS projects. He also worked in a senior capacity for Kazneftegazrazvedka and was president of Kazakhstancaspishelf. Kuandykov has extensive government experience in Kazakhstan, having served as deputy minister of geology, head of the oil and gas directorate at the Ministry of Geology, and was deputy minister of energy and fuel resources.
Alexey Kruzhkov - Non-executive Director
Alexey Kruzhkov holds an engineering degree and an MBA with over 10 years’ experience working in the investment industry, focusing primarily on the oil & gas, mining and real estate sectors. He has served as a director on the boards of companies listed in Canada and Norway. He is a member of the executive team of Waterford Finance and Investment Limited. He holds British and Russian citizenship.
Alexander Kuzev - Non-executive Director
Alexander Kuzev is an oil industry professional with over 26 years of experience. Most of his career has been spent working in the Former Soviet Union with much of that time responsible for the overall management of field operations with a focus on production sustainability, technology and field maintenance. He brings an important technical advisory skill set to the Jupiter Energy board, as well as in-country experience, having been involved with various Kazakhstan-based oil and gas operations since the late 1990s.
Keith Martens - Non-executive Director
Keith Martens has over 40 years’ experience as an oil finder and manager around the world. He has served as a technical advisor and consultant to a number of Australian oil & gas companies, and was instrumental in the discovery of Jupiter’s Akkar East and West Zhetybai oil fields when he was consulting to Jupiter Energy between 2007 and 2014. More recently, Martens has been working on the Eastern Margin of the Permian Basin in Texas with Winchester Energy and in the Paradox Basin in Utah and Colorado, as both lead explorationist and non-executive chairman of ASX listed Grand Gulf Energy (ASX:GGE).Sustainable, long-term and profitable oil exploration and production in Kazakhstan – cashflow positive with a proven reserve base
Coelacanth Energy Inc. Announces Operations Update, Revised Reserve Report and Initial Resource Report
Coelacanth completed and commissioned its new battery facility in early June and subsequently started to systematically place the 9 previously drilled Montney wells from the 5-19 pad on production. Although Coelacanth has chosen to moderate the pace of wells brought on-stream because of low natural gas prices at the Station 2 hub, the results to date have exceeded expectations.
Lower Montney
Three Lower Montney wells (D5-19, E5-19, F5-19) were placed on production this summer and have meaningful initial production data as follows:
- D5-19 has a completed lateral length of 3,180 metres and had sales production for its initial 30-day period of 1,037 boe/d (57% liquids) comprised of 546 bbls/d of light oil, 2,659 mmcf/d of natural gas and 48 bbls/d of natural gas liquids.
- E5-19 has a completed lateral length of 2,775 metres and had sales production for its initial 30-day period of 1,346 boe/d (67% liquids) comprised of 854 bbls/d of light oil, 2,660 mmcf/d of natural gas and 49 bbls/d of natural gas liquids.
- F5-19 has a completed lateral length of 2,800 metres and had sales production for its initial 22-day period of 1,323 boe/d (61% liquids) comprised of 745 bbls/d of light oil, 3,121 mmcf/d of natural gas and 58 bbls/d of natural gas liquids.
The wells have exceeded initial production on a proved plus probable basis (2P) as booked by GLJ Ltd. ("GLJ") in its independent evaluation for Coelacanth.
GLJ RESERVE REPORT DATED EFFECTIVE JUNE 30, 2025
Coelacanth has updated its previously disclosed 2024 year-end reserves report as independently evaluated by GLJ. The new GLJ reserves report is effective June 30, 2025 and is a mechanical update to the prior report (the "Reserve Report"). The mechanical update does not change the production profiles provided in the 2024 year-end report but does provide the following:
- Reclassification of reserves on all 9 Montney wells on the 5-19 pad (8.7 million boe) from non-producing status (Proved Non-Producing and Probable Non-Producing) to producing status (Proved Producing and Probable Producing) given Coelacanth's new battery facility is complete and all wells are now capable of production.
- Rescheduled timing of wells being placed on production.
- Removal of $37.5 million of future development capital pertaining to facility and other capital booked prior to the July 1, 2025 effective date.
- Updated future pricing reflecting GLJ's latest price forecast.
The Report increases the overall reserve value by $40.4 million from the year-end report but more importantly increases the producing status reserves by $107.4 million (estimated future net revenues before taxes discounted at 10%). Coelacanth believes the July 1, 2025 updated GLJ Report better reflects the current status of the Company given the changes as noted above.
Congruent with the prior report, GLJ has placed reserves on less than 10 net sections of land and predominantly in the Lower Montney leaving room to expand the reserve base both aerially and vertically.
Reserves Summary
Coelacanth's June 30, 2025 reserves as prepared by GLJ effective June 30, 2025 and based on the GLJ (2025-07) future price forecast are as follows: (1)
| Working Interest Reserves (2) | Tight Oil (Mbbl) | Shale Natural Gas (Mmcf) | NGLs (Mbbl) | Total Oil Equivalent (Mboe) (3) |
| Proved | ||||
| Producing | 2,017 | 45,129 | 836 | 10,374 |
| Developed non-producing | - | - | - | - |
| Undeveloped | 1,256 | 28,336 | 525 | 6,504 |
| Total proved | 3,273 | 73,465 | 1,361 | 16,878 |
| Probable | 2,157 | 44,640 | 827 | 10,424 |
| Total proved & probable | 5,430 | 118,105 | 2,188 | 27,302 |
| Notes: | |
| (1) | Numbers may not add due to rounding. |
| (2) | "Working Interest" or "Gross" reserves means Coelacanth's working interest (operating and non-operating) share before deduction of royalties and without including any royalty interest of Coelacanth. |
| (3) | Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil. |
Reserves Values
The estimated future net revenues before taxes associated with Coelacanth's reserves effective June 30, 2025 and based on the GLJ (2025-07) future price forecast are summarized in the following table: (1,2,3)
| Discount factor per year | |||||
| ($000s) | 0% | 5% | 10% | 15% | 20% |
| Proved | |||||
| Producing | 176,441 | 144,557 | 122,202 | 105,937 | 93,680 |
| Developed non-producing | - | - | - | - | - |
| Undeveloped | 97,882 | 68,628 | 49,981 | 37,384 | 28,424 |
| Total proved | 274,323 | 213,185 | 172,183 | 143,321 | 122,104 |
| Probable | 214,074 | 146,438 | 107,868 | 83,914 | 67,902 |
| Total proved & probable | 488,397 | 359,623 | 280,051 | 227,235 | 190,006 |
| Notes: | |
| (1) | Numbers may not add due to rounding. |
| (2) | The estimated future net revenues are stated prior to provision for interest, debt service charges or general and administrative expenses and after deduction of royalties, operating costs, estimated well abandonment and reclamation costs and estimated future capital expenditures. |
| (3) | The estimated future net revenue contained in the table does not necessarily represent the fair market value of the reserves. There is no assurance that the forecast price and cost assumptions contained in the GLJ Report will be attained and variations could be material. The recovery and reserve estimates described herein are estimates only. Actual reserves may be greater or less than those calculated. |
Price Forecast
The GLJ (2025-07) price forecast is as follows:
| Year | WTI Oil @ Cushing ($US / Bbl) | Edmonton Light Oil ($Cdn / Bbl) | AECO Natural Gas ($Cdn / Mmbtu) | Chicago Natural Gas ($US / Mmbtu) | Foreign Exchange (Cdn$/US$) |
| 2025 Q3-Q4 | 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 year | 2.0% per year | 2.0% per year | 2.0% per year |
| (1) | Escalated at two per cent per year starting in 2035 in the July 1, 2025 GLJ price forecast with the exception of foreign exchange, which remains flat. |
GLJ RESOURCE REPORT
GLJ has provided a Resource Report effective June 30, 2025 on Coelacanth's Two Rivers Montney lands encompassing approximately 150 net sections over 4 identified Montney zones (the "Resource Report"). As displayed below, Coelacanth has an estimated 6.9 billion barrels of Discovered Petroleum Initially-In-Place (PIIP) and 5.9 trillion cubic feet of Discovered Gas PIIP. The Resource Report also estimates 8.3 billion barrels of Undiscovered Petroleum PIIP and 7.1 trillion cubic feet of Undiscovered Gas PIIP in place on its lands.
To date, Coelacanth has focused to varying degrees on 3 of the 4 Montney zones (Upper, Lower, Basal) with extensive mapping, core work, and placement of horizontal wells in all 3 zones to help determine economics and ultimate recoveries of the resource. The Middle Montney has had minimal work performed on it to date and is listed as undiscovered at this point. Coelacanth will perform additional work on the middle Montney in the future to better understand its commerciality.
The Resource Report not only portrays how large the Coelacanth's Montney resource in place is, but will be used as a tool in determining well spacing, frac design and ultimate well recoveries to aid in the overall development of Coelacanth's Two Rivers project.
| Zone | Discovered Oil PIIP (Billion Bbls) | Undiscovered Oil PIIP (Billion Bbls) |
| Upper Montney | 2.5 | 0.2 |
| Middle Montney | - | 5.0 |
| Lower Montney | 3.0 | 0.2 |
| Basal Montney | 1.3 | 2.9 |
| Total Montney(1) | 6.9 | 8.3 |
| (1) | Numbers may not add due to rounding |
| Zone | Discovered Gas PIIP (Trillion cubic feet) | Undiscovered Gas PIIP (Trillion cubic feet) |
| Upper Montney | 2.1 | 0.1 |
| Middle Montney | - | 4.2 |
| Lower Montney | 2.6 | 0.2 |
| Basal Montney | 1.1 | 2.5 |
| Total Montney(1) | 5.9 | 7.1 |
| (1) | Numbers may not add due to rounding |
Overall, Coelacanth is very pleased with its well results to date and is looking forward to establishing the ultimate recoverable reserves while increasing booked reserves and on its large Two Rivers Montney Resource for the benefit of its stakeholders.
Oil and Gas Terms
The Company uses the following frequently recurring oil and gas industry terms in the news release:
| Liquids | |
| Bbls | Barrels |
| Bbls/d | Barrels per day |
| NGLs | Natural gas liquids (includes condensate, pentane, butane, propane, and ethane) |
| WTI | West Texas Intermediate at Cushing, Oklahoma |
| Natural Gas | |
| Mcf | Thousands of cubic feet |
| Mcf/d | Thousands of cubic feet per day |
| MMcf/d | Millions of cubic feet per day |
| MMbtu | Millions of British thermal units |
| Oil Equivalent | |
| Boe | Barrels of oil equivalent |
| Boe/d | Barrels of oil equivalent per day |
Disclosure provided herein in respect of a boe may be misleading, particularly if used in isolation. A boe conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent has been used for the calculation of boe amounts in the news release. This boe conversion rate is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Product Types
The Company uses the following references to sales volumes in the news release:
Natural gas (and gas) refers to shale gas
Oil refers to tight oil
NGLs refers to butane, propane and pentanes combined
Liquids refers to tight oil and NGLs combined
Oil equivalent refers to the total oil equivalent of shale gas, tight oil, and NGLs combined, using the conversion rate of six thousand cubic feet of shale gas to one barrel of oil equivalent as described above.
Forward-Looking Information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information.
More particularly and without limitation, this document contains forward-looking statements and information relating to the Company's oil, NGLs and natural gas production and reserves and reserves values, oil and natural gas resources, capital programs, and oil, NGLs, and natural gas commodity prices. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities and the availability and cost of labor and services.
Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Resources Data
Total Petroleum Initially-In-Place (PIIP) is that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered (equivalent to "total resources").
Discovered Petroleum Initially-In-Place (equivalent to discovered resources) is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of discovered petroleum initially in place includes production, reserves, and contingent resources; the remainder is unrecoverable.
Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical, and engineering data; the use of established technology; and specified economic conditions, which are generally accepted as being reasonable. Reserves are further classified according to the level of certainty associated with the estimates and may be subclassified based on development and production status. [Reserves are further defined below].
Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent Resources are further classified in accordance with the level of certainty associated with the estimates and may be subclassified based on project maturity and/or characterized by their economic status.
Undiscovered Petroleum Initially-In-Place (equivalent to undiscovered resources) is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of undiscovered petroleum initially in place is referred to as "prospective resources," the remainder as "unrecoverable."
Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be subclassified based on project maturity.
There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. The key variables relevant to the evaluation are porosity, reservoir thickness, pressure, water saturation and gas composition which have increasing uncertainty, both positive and negative, with distance from existing wells.
Reserves Data
There are numerous uncertainties inherent in estimating quantities of tight oil, shale gas, and NGLs reserves and the future cash flows attributed to such reserves. The reserve and associated cash flow information set forth above are estimates only. In general, estimates of economically recoverable tight oil, shale gas, and NGLs reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserve recovery, timing and amount of capital expenditures, marketability of oil and natural gas, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially.
Individual properties may not reflect the same confidence level as estimates of reserves for all properties due to the effects of aggregation.
This news release contains estimates of the net present value of the Company's future net revenue from its reserves. Such amounts do not represent the fair market value of the Company's reserves.
The reserves data contained in this news release has been prepared in accordance with National Instrument 51-101 ("NI 51-101").
Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical and engineering data; the use of established technology, and specified economic conditions, which are generally accepted as being reasonable. Reserves are classified according to the degree of certainty associated with the estimates as follows:
Proved Reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
Probable Reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
Initial Production Rates
The D5-19 Lower Montney well was tied into the 16-03 facility, and produced an average rate of 546 bbl/d oil, 2,659 mcf/d natural gas, and 48 bbl/d NGLs, for a total average rate of 1,037 boe/d, on a sales basis, over the first 30 days of in-line production (IP30)
The E5-19 Lower Montney well was tied into the 16-03 facility, and produced an average rate of 854 bbl/d oil, 2,660 mcf/d natural gas, and 49 bbl/d NGLs, for a total average rate of 1,346 boe/d, on a sales basis, over the first 30 days of in-line production (IP30)
The F5-19 Lower Montney well was tied into the 16-03 facility, and produced an average rate of 745 bbl/d oil, 3,121 mcf/d natural gas, and 58 bbl/d NGLs, for a total average rate of 1,037 boe/d, on a sales basis, over the first 22 days of in-line production
Any references to peak rates, test rates, IP30, IP90, IP180 or initial production rates or declines are useful for confirming the presence of hydrocarbons, however, such rates and declines are not determinative of the rates at which such wells will continue production and decline thereafter and are not indicative of long-term performance or ultimate recovery. IP30 is defined as an average production rate over 30 consecutive days, IP90 is defined as an average production rate over 90 consecutive days and IP180 is defined as an average production rate over 180 consecutive days. Readers are cautioned not to place reliance on such rates in calculating aggregate production for the Company.
FOR FURTHER INFORMATION PLEASE CONTACT:
Coelacanth Energy Inc.
2110, 530 - 8th Ave SW
Calgary, Alberta T2P 3S8
Phone: 403-705-4525
www.coelacanth.ca
Mr. Robert J. Zakresky
President and Chief Executive Officer
Mr. Nolan Chicoine
Vice President, Finance and Chief Financial Officer
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Coelacanth Announces Q2 2025 Financial and Operating Results
Coelacanth Energy Inc. (TSXV: CEI,OTC:CEIEF) ("Coelacanth" or the "Company") is pleased to announce its financial and operating results for the three and six months ended June 30, 2025. All dollar figures are Canadian dollars unless otherwise noted.
| FINANCIAL RESULTS | Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30 | June 30 | |||||||||||||||||
| ($000s, except per share amounts) | 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||
| Oil and natural gas sales | 4,828 | 3,164 | 53 | 7,494 | 6,830 | 10 | ||||||||||||
| Cash flow from (used in) operating activities | (1,826 | ) | (480 | ) | 280 | (845 | ) | 2,776 | (130 | ) | ||||||||
| Per share - basic and diluted (1) | (-) | (-) | - | (-) | 0.01 | (100 | ) | |||||||||||
| Adjusted funds flow (used) (1) | (600 | ) | 262 | (329 | ) | (2,040 | ) | 1,340 | (252 | ) | ||||||||
| Per share - basic and diluted | (-) | - | (-) | (-) | - | (-) | ||||||||||||
| Net loss | (3,464 | ) | (2,329 | ) | 49 | (7,081 | ) | (3,530 | ) | 101 | ||||||||
| Per share - basic and diluted | (0.01 | ) | (-) | 100 | (0.01 | ) | (0.01 | ) | - | |||||||||
| Capital expenditures (1) | 14,273 | 2,522 | 466 | 39,974 | 3,785 | 956 | ||||||||||||
| Adjusted working capital (deficiency) (1) | (41,901 | ) | 64,386 | (165 | ) | |||||||||||||
| Common shares outstanding (000s) | ||||||||||||||||||
| Weighted average - basic and diluted | 532,274 | 529,400 | 1 | 531,862 | 529,298 | - | ||||||||||||
| End of period - basic | 532,866 | 530,126 | 1 | |||||||||||||||
| End of period - fully diluted | 591,544 | 617,804 | (4 | ) | ||||||||||||||
(1) See "Non-GAAP and Other Financial Measures" section.
| Three Months Ended | Six Months Ended | |||||||||||||||||
| OPERATING RESULTS (1) | June 30 | June 30 | ||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | |||||||||||||
| Daily production (2) | ||||||||||||||||||
| Oil and condensate (bbls/d) | 539 | 284 | 90 | 362 | 292 | 24 | ||||||||||||
| Other NGLs (bbls/d) | 27 | 39 | (31 | ) | 26 | 38 | (32 | ) | ||||||||||
| Oil and NGLs (bbls/d) | 566 | 323 | 75 | 388 | 330 | 18 | ||||||||||||
| Natural gas (mcf/d) | 3,861 | 3,724 | 4 | 3,588 | 3,829 | (6 | ) | |||||||||||
| Oil equivalent (boe/d) | 1,210 | 944 | 28 | 986 | 968 | 2 | ||||||||||||
| Oil and natural gas sales | ||||||||||||||||||
| Oil and condensate ($/bbl) | 82.58 | 97.76 | (16 | ) | 84.51 | 91.34 | (7 | ) | ||||||||||
| Other NGLs ($/bbl) | 26.96 | 33.26 | (19 | ) | 32.19 | 33.99 | (5 | ) | ||||||||||
| Oil and NGLs ($/bbl) | 79.91 | 89.86 | (11 | ) | 81.01 | 84.73 | (4 | ) | ||||||||||
| Natural gas ($/mcf) | 2.02 | 1.55 | 30 | 2.77 | 2.50 | 11 | ||||||||||||
| Oil equivalent ($/boe) | 43.86 | 36.85 | 19 | 41.97 | 38.76 | 8 | ||||||||||||
| Royalties | ||||||||||||||||||
| Oil and NGLs ($/bbl) | 17.65 | 21.97 | (20 | ) | 17.20 | 21.36 | (19 | ) | ||||||||||
| Natural gas ($/mcf) | - | 0.09 | (100 | ) | 0.30 | 0.30 | - | |||||||||||
| Oil equivalent ($/boe) | 8.26 | 7.86 | 5 | 7.85 | 8.48 | (7 | ) | |||||||||||
| Operating expenses | ||||||||||||||||||
| Oil and NGLs ($/bbl) | 10.82 | 10.34 | 5 | 10.77 | 10.11 | 7 | ||||||||||||
| Natural gas ($/mcf) | 1.81 | 1.72 | 5 | 1.80 | 1.69 | 7 | ||||||||||||
| Oil equivalent ($/boe) | 10.86 | 10.34 | 5 | 10.77 | 10.11 | 7 | ||||||||||||
| Net transportation expenses (3) | ||||||||||||||||||
| Oil and NGLs ($/bbl) | 4.43 | 2.10 | 111 | 3.86 | 2.28 | 69 | ||||||||||||
| Natural gas ($/mcf) | 0.70 | 0.72 | (3 | ) | 0.74 | 0.70 | 6 | |||||||||||
| Oil equivalent ($/boe) | 4.33 | 3.55 | 22 | 4.20 | 3.54 | 19 | ||||||||||||
| Operating netback (loss) (3) | ||||||||||||||||||
| Oil and NGLs ($/bbl) | 47.01 | 55.45 | (15 | ) | 49.18 | 50.98 | (4 | ) | ||||||||||
| Natural gas ($/mcf) | (0.49 | ) | (0.98 | ) | (50 | ) | (0.07 | ) | (0.19 | ) | (63 | ) | ||||||
| Oil equivalent ($/boe) | 20.41 | 15.10 | 35 | 19.15 | 16.63 | 15 | ||||||||||||
| Depletion and depreciation ($/boe) | (12.76 | ) | (14.85 | ) | (14 | ) | (13.35 | ) | (14.63 | ) | (9 | ) | ||||||
| General and administrative expenses ($/boe) | (13.69 | ) | (15.17 | ) | (10 | ) | (16.78 | ) | (14.50 | ) | 16 | |||||||
| Stock based compensation ($/boe) | (10.31 | ) | (14.50 | ) | (29 | ) | (13.43 | ) | (12.25 | ) | 10 | |||||||
| Finance expense ($/boe) | (13.02 | ) | (1.53 | ) | 751 | (12.96 | ) | (1.29 | ) | 905 | ||||||||
| Finance income ($/boe) | 0.64 | 9.89 | (94 | ) | 0.96 | 10.25 | (91 | ) | ||||||||||
| Unutilized transportation ($/boe) | (2.75 | ) | (6.07 | ) | (55 | ) | (3.25 | ) | (4.24 | ) | (23 | ) | ||||||
| Net loss ($/boe) | (31.48 | ) | (27.13 | ) | 16 | (39.66 | ) | (20.03 | ) | 98 | ||||||||
(1) See "Oil and Gas Terms" section.
(2) See "Product Types" section.
(3) See "Non-GAAP and Other Financial Measures" section.
Selected financial and operational information outlined in this news release should be read in conjunction with Coelacanth's unaudited condensed interim financial statements and related Management's Discussion and Analysis ("MD&A") for the three and six months ended June 30, 2025, which are available for review under the Company's profile on SEDAR+ at www.sedarplus.ca.
OPERATIONS UPDATE
Coelacanth has surpassed many milestones over its initial three years including:
- Drilling and testing successful test pads at both Two Rivers East and West in multiple zones.
- Completing significant infrastructure including a facility capable of ultimately handling 16,000 boe/d and over 23 miles of pipelines to connect wells and facilities to major gathering systems.
- Obtaining core, pressure and other data that are invaluable in helping define commerciality to the multiple Montney horizons mapped over Coelacanth's 150 section contiguous land block.
Wells recently placed on production from our 5-19 pad have exceeded expectations and we look forward to placing all our wells on production by October 1, 2025 once all planned third party outages and /or major pipeline maintenance is completed in September. Coelacanth will calibrate production to the type curves in our independent reserve report and recently released resource report to determine ultimate recoveries and provide insights into potential drilling and completion optimizations.
Over the next few years, Coelacanth will continue with its business plan that incorporates:
- Systematically developing the resource using pad development and horizontal multi-frac technology to increase production and maximize cash flow and investment returns.
- Delineating the lands with vertical and horizontal wells to help in quantifying and understanding the commerciality of its large Montney resource base that includes up to four Montney benches over its 150 contiguous sections of land.
- Developing and licensing a flexible infrastructure plan that will allow for the resource to be scaled to a much larger production base.
Coelacanth has licensed additional locations on the 5-19 pad, is in the process of licensing additional development pads, delineation locations and additional infrastructure to grow beyond current plant capacity. While commodity prices and available capital will dictate the pace of execution of the business plan, we are very pleased with the results to date and look forward to reporting on new developments as they arise.
OIL AND GAS TERMS
The Company uses the following frequently recurring oil and gas industry terms in the news release:
| Liquids | |
| Bbls | Barrels |
| Bbls/d | Barrels per day |
| NGLs | Natural gas liquids (includes condensate, pentane, butane, propane, and ethane) |
| Condensate | Pentane and heavier hydrocarbons |
| Natural Gas | |
| Mcf | Thousands of cubic feet |
| Mcf/d | Thousands of cubic feet per day |
| MMcf/d | Millions of cubic feet per day |
| MMbtu | Million of British thermal units |
| MMbtu/d | Million of British thermal units per day |
| Oil Equivalent | |
| Boe | Barrels of oil equivalent |
| Boe/d | Barrels of oil equivalent per day |
Disclosure provided herein in respect of a boe may be misleading, particularly if used in isolation. A boe conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent has been used for the calculation of boe amounts in the news release. This boe conversion rate is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
NON-GAAP AND OTHER FINANCIAL MEASURES
This news release refers to certain measures that are not determined in accordance with IFRS (or "GAAP"). These non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered alternatives to, or more meaningful than, financial measures that are determined in accordance with IFRS as indicators of the Company's performance. Management believes that the presentation of these non-GAAP and other financial measures provides useful information to shareholders and investors in understanding and evaluating the Company's ongoing operating performance, and the measures provide increased transparency to better analyze the Company's performance against prior periods on a comparable basis.
Non-GAAP Financial Measures
Adjusted funds flow (used)
Management uses adjusted funds flow (used) to analyze performance and considers it a key measure as it demonstrates the Company's ability to generate the cash necessary to fund future capital investments and abandonment obligations and to repay debt, if any. Adjusted funds flow (used) is a non-GAAP financial measure and has been defined by the Company as cash flow from (used in) operating activities excluding the change in non-cash working capital related to operating activities, movements in restricted cash deposits and expenditures on decommissioning obligations. Management believes the timing of collection, payment or incurrence of these items involves a high degree of discretion and as such may not be useful for evaluating the Company's cash flows. Adjusted funds flow (used) is reconciled from cash flow from (used in) operating activities as follows:
| Three Months Ended | Six Months Ended | |||||||||||
| June 30 | June 30 | |||||||||||
| ($000s) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Cash flow from (used in) operating activities | (1,826 | ) | (480 | ) | (845 | ) | 2,776 | |||||
| Add (deduct): | ||||||||||||
| Decommissioning expenditures | 48 | 328 | 187 | 476 | ||||||||
| Change in restricted cash deposits | - | 422 | - | 846 | ||||||||
| Change in non-cash working capital | 1,178 | (8 | ) | (1,382 | ) | (2,758 | ) | |||||
| Adjusted funds flow (used) (non-GAAP) | (600 | ) | 262 | (2,040 | ) | 1,340 | ||||||
Net transportation expenses
Management considers net transportation expenses an important measure as it demonstrates the cost of utilized transportation related to the Company's production. Net transportation expenses is calculated as transportation expenses less unutilized transportation and is calculated as follows:
| Three Months Ended | Six Months Ended | |||||||||||
| June 30 | June 30 | |||||||||||
| ($000s) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Transportation expenses | 779 | 826 | 1,330 | 1,371 | ||||||||
| Unutilized transportation | (303 | ) | (522 | ) | (580 | ) | (747 | ) | ||||
| Net transportation expenses (non-GAAP) | 476 | 304 | 750 | 624 | ||||||||
Operating netback
Management considers operating netback an important measure as it demonstrates its profitability relative to current commodity prices. Operating netback is calculated as oil and natural gas sales less royalties, operating expenses, and net transportation expenses and is calculated as follows:
| Three Months Ended | Six Months Ended | |||||||||||
| June 30 | June 30 | |||||||||||
| ($000s) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Oil and natural gas sales | 4,828 | 3,164 | 7,494 | 6,830 | ||||||||
| Royalties | (910 | ) | (674 | ) | (1,401 | ) | (1,495 | ) | ||||
| Operating expenses | (1,195 | ) | (888 | ) | (1,923 | ) | (1,782 | ) | ||||
| Net transportation expenses | (476 | ) | (304 | ) | (750 | ) | (624 | ) | ||||
| Operating netback (non-GAAP) | 2,247 | 1,298 | 3,420 | 2,929 | ||||||||
Capital expenditures
Coelacanth utilizes capital expenditures as a measure of capital investment on property, plant, and equipment, exploration and evaluation assets and property acquisitions compared to its annual budgeted capital expenditures. Capital expenditures are calculated as follows: hello
| Three Months Ended | Six Months Ended | |||||||||||
| June 30 | June 30 | |||||||||||
| ($000s) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Capital expenditures – property, plant, and equipment | 370 | 184 | 1,038 | 577 | ||||||||
| Capital expenditures – exploration and evaluation assets | 13,903 | 2,338 | 38,936 | 3,208 | ||||||||
| Capital expenditures (non-GAAP) | 14,273 | 2,522 | 39,974 | 3,785 | ||||||||
Capital Management Measures
Adjusted working capital (deficiency)
Management uses adjusted working capital (deficiency) as a measure to assess the Company's financial position. Adjusted working capital (deficiency) is calculated as current assets and restricted cash deposits less current liabilities, excluding the current portion of decommissioning obligations.
| ($000s) | June 30, 2025 | December 31, 2024 | ||||
| Current assets | 6,439 | 11,579 | ||||
| Less: | ||||||
| Current liabilities | (53,926 | ) | (37,234 | ) | ||
| Working capital deficiency | (47,487 | ) | (25,655 | ) | ||
| Add: | ||||||
| Restricted cash deposits | 4,900 | 4,900 | ||||
| Current portion of decommissioning obligations | 686 | 2,118 | ||||
| Adjusted working capital deficiency (Capital management measure) | (41,901 | ) | (18,637 | ) | ||
Non-GAAP Financial Ratios
Adjusted Funds Flow (Used) per Share
Adjusted funds flow (used) per share is a non-GAAP financial ratio, calculated using adjusted funds flow (used) and the same weighted average basic and diluted shares used in calculating net loss per share.
Net transportation expenses per boe
The Company utilizes net transportation expenses per boe to assess the per unit cost of utilized transportation related to the Company's production. Net transportation expenses per boe is calculated as net transportation expenses divided by total production for the applicable period.
Operating netback per boe
The Company utilizes operating netback per boe to assess the operating performance of its petroleum and natural gas assets on a per unit of production basis. Operating netback per boe is calculated as operating netback divided by total production for the applicable period.
Supplementary Financial Measures
The supplementary financial measures used in this news 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.
PRODUCT TYPES
The Company uses the following references to sales volumes in the news release:
Natural gas refers to shale gas
Oil and condensate refers to condensate and tight oil combined
Other NGLs refers to butane, propane and ethane combined
Oil and NGLs refers to tight oil and NGLs combined
Oil equivalent refers to the total oil equivalent of shale gas, tight oil, and NGLs combined, using the conversion rate of six thousand cubic feet of shale gas to one barrel of oil equivalent.
The following is a complete breakdown of sales volumes for applicable periods by specific product types of shale gas, tight oil, and NGLs:
| Three Months Ended | Six Months Ended | |||
| June 30 | June 30 | |||
| Sales Volumes by Product Type | 2025 | 2024 | 2025 | 2024 |
| Condensate (bbls/d) | 17 | 56 | 17 | 38 |
| Other NGLs (bbls/d) | 27 | 39 | 26 | 38 |
| NGLs (bbls/d) | 44 | 95 | 43 | 76 |
| Tight oil (bbls/d) | 522 | 228 | 345 | 254 |
| Condensate (bbls/d) | 17 | 56 | 17 | 38 |
| Oil and condensate (bbls/d) | 539 | 284 | 362 | 292 |
| Other NGLs (bbls/d) | 27 | 39 | 26 | 38 |
| Oil and NGLs (bbls/d) | 566 | 323 | 388 | 330 |
| Shale gas (mcf/d) | 3,861 | 3,724 | 3,588 | 3,829 |
| Natural gas (mcf/d) | 3,861 | 3,724 | 3,588 | 3,829 |
| Oil equivalent (boe/d) | 1,210 | 944 | 986 | 968 |
FORWARD-LOOKING INFORMATION
This document contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information.
More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's oil and condensate, other NGLs, and natural gas production, capital programs, and adjusted working capital. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities, and the availability and cost of labour and services.
Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs, and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty, and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Coelacanth is an oil and natural gas company, actively engaged in the acquisition, development, exploration, and production of oil and natural gas reserves in northeastern British Columbia, Canada.
Further Information
For additional information, please contact:
Coelacanth Energy Inc.
Suite 2110, 530 - 8th Avenue SW
Calgary, Alberta T2P 3S8
Phone: (403) 705-4525
www.coelacanth.ca
Mr. Robert J. Zakresky
President and Chief Executive Officer
Mr. Nolan Chicoine
Vice President, Finance and Chief Financial 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/264010
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Alvopetro Announces Production Results from Murucututu 183-D4 Well and an Operational Update
Alvopetro Energy Ltd. (TSXV: ALV,OTC:ALVOF) (OTCQX: ALVOF) announces initial production results from our recently completed 183-D4 Murucututu well (100% working interest) and an operational update.
President & CEO, Corey C. Ruttan commented:
"The initial results from our 183-D4 well are extremely encouraging and have allowed us to post record daily natural gas production levels from our 100% owned Murucututu asset. This result reinforces our vision for Murucututu and our long-term growth objectives."
Operational Update
Brazil
On our 100% owned Murucututu field, the 183-D4 well was drilled in the second quarter to a total measured depth of 3,072 metres. The well encountered the Caruaçu Member of the Maracangalha Formation 106 metres structurally updip of our 183-A3 well which has been on production since the fourth quarter of 2024. Based on cased-hole gamma ray logs and normalized gas while drilling, the well encountered potential natural gas pay in the Caruaçu Member of the Maracangalha Formation, with an aggregate 61 metres total vertical depth ("TVD") of potential natural gas pay between 2,439 and 2,838 metres TVD. We completed the well in seven intervals. The well went through an initial 116-hour cleanup period, recovering 2,620 barrels of completion fluid and 132 barrels of natural gas liquids. After this initial cleanup period, we flowed the well for 70 hours at a constant 32/64"choke at an average rate of 162 e 3 m 3 /d (5.7 MMcfpd, 953 boepd) with a 1,401psi flowing wellhead pressure. During this period, we also recovered a total of 995 barrels of completions fluid and 174 barrels of natural gas liquids. Average natural gas liquids (condensate) production during the flow period was 60 boepd. The flow rate over the last hour was 161 e 3 m 3 /d (5.7 MMcfpd, 947 boepd) with 1,384 psi flowing wellhead pressure. There are 12,190 barrels of 15,806 barrels of completions fluid left to recover. Given these extremely strong production results we are currently producing the Murucututu field from this single well as we are limited by our current facility capacity at Murucututu. As we continue to monitor these initial flow results, we will be evaluating options to improve production capacity of the system to allow for more production from the Murucututu field.
Our joint development on the unitized area ("the Unit") which includes our Caburé field commenced in the second quarter and four wells (2.2 net) have now been drilled. We have just commenced the completion program and expect to have the additional production online by the end of the third quarter. These development wells were primarily drilled to extend and enhance the productive plateau of the Unit and the results will also be incorporated into future Unit working interest redeterminations. The timing of drilling the fifth development well (0.6 net) is subject to the receipt of all necessary regulatory approvals.
Development Activities – Western Canada
In June, we further expanded our joint Mannville focused land based to 17,780 gross acres (8,890 net acres) and in July, two additional multi-lateral wells (1.0 net) were drilled with an aggregate of over 19 kilometers of open hole reservoir contact. Both wells have been completed and equipped and have just commenced production. Following a clean-up flow period, we will commence oil sales from these two new wells.
Corporate Presentation
Alvopetro's updated corporate presentation is available on our website at: http://www.alvopetro.com/corporate-presentation .
Social Media
Follow Alvopetro on our social media channels at the following links:
Twitter - https://twitter.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd
Alvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related strategic midstream infrastructure.
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 news release.
Abbreviations:
| boepd = | barrels of oil equivalent ("boe") per day |
| bopd = | barrels of oil and/or natural gas liquids (condensate) per day |
| e 3 m 3 /d = | thousand cubic metre per day |
| m 3 = | cubic metre |
| m 3 /d = | cubic metre per day |
| Mcf = | thousand cubic feet |
| Mcfpd = | thousand cubic feet per day |
| MMcf = | million cubic feet |
| MMcfpd = | million cubic feet per day |
| NGLs = | natural gas liquids (condensate) |
| psi = | pounds per square inch |
BOE Disclosure
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
Well Results
Data obtained from the 183-D4 well identified in this press release, including cased-hole logging data, potential net pay and initial production results should be considered preliminary. There is no representation by Alvopetro that the data relating to the 183-D4 well contained in this press release is necessarily indicative of long-term performance or ultimate recovery. The reader is cautioned not to unduly rely on such data as such data may not be indicative of future performance of the well or of expected production or operational results for Alvopetro in the future.
Forward-Looking Statements and Cautionary Language
This news release contains forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "expect", "intend", "plan", "may", "believe", "estimate", "forecast", "anticipate", "should" and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking statements concerning future production and sales volumes, the expected timing of production and sales commencement from certain wells, and plans relating to the Company's operational activities, proposed development activities and the timing for such activities. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulations relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, the outcome of any disputes, the outcome of redeterminations, general economic and business conditions, forecasted demand for oil and natural gas, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, and the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and foreign exchange rate fluctuations, market uncertainty associated with trade or tariff disputes, and general economic conditions. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our AIF which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca . The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
www.alvopetro.com
TSX-V: ALV, OTCQX: ALVOF
SOURCE Alvopetro Energy Ltd.
View original content: http://www.newswire.ca/en/releases/archive/August2025/25/c1020.html
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Stallion Uranium Completes First Tranche of Non-Brokered Private Placement and Announces Upsizing
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Stallion Uranium Corp. (the " Company " or " Stallion ") ( TSX-V: STUD ; OTCQB: STLNF ; FSE: FE0 ) is pleased to announce that it has closed a first tranche of its previously announced non-brokered private placement of units and flow-through units (the " Offering "). This closing consisted of 21,239,800 units of the Company (each a " NFT Unit ") at a price of $0.20 per NFT Unit for aggregate gross proceeds of $4,247,960 and 1,315,000 flow-through units (each a " FT Unit ") at a price of $0.20 per FT Unit for aggregate gross proceeds of $263,000.
Each FT Unit consists of one flow-through common share of the Company as defined in the Income Tax Act (Canada) (a " FT Share ") and one FT Share purchase warrant (each a " FT Warrant "). Each FT Warrant entities the holder to purchase one additional FT Share in the capital of the Company (a " FT Warrant Share ") at a price of $0.26 per FT Warrant Share for a period of 60 months from the closing of the date of issuance.
Each NFT Unit consists of one non-flow-through common share in the capital of the Company (a " NFT Share ") and one share purchase warrant (a " NFT Warrant "). Each NFT Warrant entitles the holder to purchase one additional non-flow-through common share in the capital of the Company (a " NFT Warrant Share ") at a price of $0.26 per NFT Warrant Share for a period of 60 months from the date of issuance.
The NFT Units and FT Units issued pursuant to the first tranche of the Offering are subject to a four-month hold period under applicable Canadian securities laws that expires on December 21, 2025.
In connection with the closing of the first tranche of the Offering, the Company issued an aggregate of 668,003 NFT Shares and 668,003 non-transferable NFT Share purchase warrants (the " Finder's Warrants ") to eligible arms' length finders, DJ Sheehan Consulting Limited and Edward Marlow. Each Finder's Warrant is exercisable into one NFT Share (a " Finder's Warrant Share ") at a price of $0.26 per Finder's Warrant Share for a period of 60 months from the date of issuance. In connection with the first tranche of the Offering, the Company has paid cash finder's fees totaling an aggregate of $173,976.67 to Accilent Capital Management Inc. and DJ Sheehan Consulting Limited.
Upsizing of the Offering:
Due to market demand, the Company has increased the size of the Offering from up to $12,000,000 to up to $15,000,000. The Company anticipates completing a second closing of the Offering on or before August 30, 2025.
The upsized Offering will consist of up to a combined aggregate of 75,000,000 FT Units and NFT Units for aggregate gross proceeds of up to $15,000,000. The Company anticipates that, upon completion of all tranches of the Offering, a new Control Person (as defined below), Mr. Matthew Mason (" Mr. Mason "), will be created though Mr. Mason's anticipated purchase of 15,000,000 FT Units. Mr. Mason's subscription is subject to obtaining requisite approval from the disinterested shareholders of the Company (as further described below) and the TSX Venture Exchange (the " TSXV ").
The gross proceeds raised from the issuance of the FT Units will be used by the Company to incur exploration expenditures on the Company's resource claims in the province of Saskatchewan and will constitute "Canadian exploration expenses" as defined in the Income Tax Act (Canada). The net proceeds raised from the issuance of the NFT Units will be used by the Company for exploration and development activities of its Athabasca Basin properties and for working capital and general corporate purposes.
Closing of the Offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including the TSXV. Policy 4.1 of the TSXV Corporate Finance Manual requires disinterested shareholder approval where a transaction creates a shareholder that holds or controls 20% or more of an issuer's shares (a " Control Person "). The Company anticipates that Mr. Mason's purchase of FT Units under the Offering will create a new Control Person pursuant to Policy 4.1. To fulfil the requirements of Policy 4.1, the Company intends to seek approval of disinterested shareholders holding or controlling more than 50% of its common shares of the Company to approve the creation of the new Control Person by written consent resolution. All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.
Finder's fees may be payable in connection with the completion of further tranches of the Offering in accordance with TSXV policies. In connection with the Offering, the Company has entered into an Advisory Agreement with Canaccord Genuity Corp. (the " Advisor "), pursuant to which the Advisor shall provide financial advisory, consulting, and support services in connection with the Offering (the " Advisory Services "). In consideration for the Advisory Services, subject to the approval of the TSXV, the Company will pay the Advisor a work fee equal to $150,000 (the " Fee "). The Fee shall be payable in units at the terms matching those of the NFT Units in the Offering. The Fee Units and the underlying securities issued to the Advisor will be subject to a four month and one day hold period in accordance with Canadian securities laws.
Insiders of the Company will participate in the Offering. Any such participation will be considered a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (" MI 61-101 "). The Offering is expected to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of any securities issued to such insiders nor the consideration that will be paid by such persons will exceed 25% of the Company's market capitalization.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Stallion Uranium Corp.:
Stallion Uranium is working to ‘Fuel the Future with Uranium' through the exploration of roughly 1,700 sq/km in the Athabasca Basin, home to the largest high-grade uranium deposits in the world. The company, with JV partner Atha Energy holds the largest contiguous project in the Western Athabasca Basin adjacent to multiple high-grade discovery zones.
Our leadership and advisory teams are comprised of uranium and precious metals exploration experts with the capital markets experience and the technical talent for acquiring and exploring early-stage properties. For more information visit stallionuranium.com .
On Behalf of the Board of Stallion Uranium Corp.:
Matthew Schwab
CEO and Director
Corporate Office:
700 - 838 West Hastings Street,
Vancouver, British Columbia,
V6C 0A6
T: 604-551-2360
info@stallionuranium.com
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.
This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, "forward-looking statements") that relate to the Company's current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this material change report should not be unduly relied upon. These statements speak only as of the date they are made.
Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for the Company to predict all of them or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this presentation are expressly qualified in their entirety by this cautionary statement .
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Purepoint Uranium Sets Final Size of Private Placement at $6 Million
Purepoint Uranium Group Inc. (TSXV: PTU,OTC:PTUUF) (OTCQB: PTUUF) ("Purepoint" or the "Company") announces that it has set the final size of its previously announced non-brokered flow-through private placement (the "Offering") at $6,000,000. The book is now fully subscribed, and no further subscriptions will be accepted.
The Offering will now be comprised of a combination of the following:
- 3,846,154 Saskatchewan flow-through units of the Company (each, a "SFT Unit") at a price of $0.65 per SFT Unit for aggregate gross proceeds of $2,500,000 with each SFT Unit consisting of one common share of the Company to be issued on a "flow through" basis pursuant to the Income Tax Act (Canada) (each a "SFT Share") and one common share purchase warrant (each, a "Warrant");
- 4,479,757 national flow-through units of the Company (each, a "NFT Unit") at a price of $0.59 per NFT Unit for aggregate gross proceeds of $2,643,057 with each NFT Unit consisting of one common share of the Company to be issued on a "flow through" basis pursuant to the Income Tax Act (Canada) (each a "NFT Share") and one Warrant; and
- Up to 1,452,446 traditional flow-through units of the Company (each, a "TFT Unit", together with the SFT Unit and the NFT, the "Units") at a price of $0.59 per TFT Unit for aggregate gross proceeds up to $856,943 with each TFT Unit consisting of one common share of the Company to be issued on a "flow through" basis pursuant to the Income Tax Act (Canada) (each a "TFT Share", together with the SFT Shares and the NFT Shares, the "FT Shares") and one Warrant.
Each Warrant entitles its holder to purchase one common share of the Company (each a "Warrant Share") at an exercise price of $0.50 per share for a period of 24 months from the date of issuance.
The gross proceeds of the FT Shares sold under the Offering will be used for Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada)) which qualify as a "flow-through mining expenditure" for purposes of the Income Tax Act (Canada) related to the exploration program of the Company to be conducted on the Company's properties located in the Athabasca Basin, Saskatchewan. The Company will renounce such Canadian Exploration Expenses with an effective date of no later than December 31, 2025.
The completion of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and corporate approvals, including the approval of the listing of the FT Shares and the Warrant Shares on the TSX Venture Exchange. Resale of the securities of the Company distributed under the Offering will be subject to a statutory hold period in Canada of four months and one day following the closing date of the Offering. The Company is targeting to close the Offering on or around August 28, 2025.
About Purepoint
Purepoint Uranium Group Inc. (TSXV: PTU,OTC:PTUUF) (OTCQB: PTUUF) is a focused explorer with a dynamic portfolio of advanced projects within the renowned Athabasca Basin in Canada. Highly prospective uranium projects are actively operated on behalf of partnerships with industry leaders including Cameco Corporation, Orano Canada Inc. and IsoEnergy Ltd.
Additionally, the Company holds a promising VHMS project currently optioned to and strategically positioned adjacent to and on trend with Foran Corporation's McIlvenna Bay project. Through a robust and proactive exploration strategy, Purepoint is solidifying its position as a leading explorer in one of the globe's most significant uranium districts.
For more information, please contact:
Chris Frostad, President & CEO
Phone: (416) 603-8368
Email: cfrostad@purepoint.ca
For additional information please visit our new website at https://purepoint.ca, our Twitter feed: @PurepointU3O8 or our LinkedIn page @Purepoint-Uranium.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this Press release.
Disclosure regarding forward-looking statements
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. "Forward-looking information" includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including the completion of planned exploration activities, the ability of the Company to complete the Offering on the proposed terms or at all, statements regarding the tax treatment of the Units and the timing to renounce all Canadian Exploration Expenses, the anticipated use of proceeds from the Offering and receipt of regulatory approvals with respect to the Offering. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or 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" or the negative connation thereof.
Such forward-looking information and statements are based on numerous assumptions, including among others, that the Company's planned exploration activities will be completed in a timely manner, that the Company will be able to complete the Offering on the terms as anticipated by management, that the Company will use the proceeds of the Offering as anticipated, and that the Company will receive regulatory approval with respect to the Offering. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include the risk that the Company will not be able to complete the Offering on the terms as anticipated by management or at all, that the Company will not use the proceeds of the Offering as anticipated, that the Company will not receive regulatory approval with respect to the Offering, risks relating to the actual results of current exploration activities, fluctuating uranium prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.
The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
For Immediate Release - Not for Dissemination in the United States or through U.S. Newswire Services
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/263009
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