Westgate Energy Boosts Output, Eyes Major 2026 Drilling Expansion

CALGARY, AB – January 22, 2026 – Westgate Energy Inc. announced a significant operational step forward today, bringing three new horizontal oil wells online in its Beaverdam asset and unveiling an ambitious plan to triple its producing well count in the region by the end of 2026. The update signals the junior producer's confidence in its strategy within Alberta's increasingly competitive Mannville Stack oil fairway.

The Calgary-based company, which trades on the TSX Venture Exchange, confirmed that its latest wells, part of a successful fall 2025 drilling program, are now contributing a combined total of approximately 330 barrels per day (bbl/d). This new production provides a tangible boost to Westgate's output, which has seen substantial growth over the past year.

A Calculated Approach to Production

Westgate detailed a methodical strategy for its new wells, initiating production at conservative pump rates. This approach is designed as a "gradual clean up phase" to mitigate the wear on downhole equipment often caused by sand production in the initial stages. The company expects production rates to climb in the coming weeks as pumping is carefully ramped up.

Further bolstering this strategy is the ongoing construction of a new holding tank facility on the existing Beaverdam pad site. This critical piece of infrastructure is designed to do more than just store oil; it's a strategic investment in operational efficiency. Westgate anticipates the facility will increase oil recoveries by capturing valuable hydrocarbons from produced sand and emulsion, adding an estimated 30 bbl/d of incremental production from the company's six existing wells.

Beyond the volume increase, the facility is projected to significantly improve profitability by reducing the need for costly third-party handling and disposal services. The company projects this will enhance operating netbacks—a key industry metric for profitability per barrel—by more than $5/bbl. With a capacity designed to service up to 25 wells, the facility is a long-term asset intended to underpin the economics of Westgate's future growth.

De-Risking Future Growth with Geological Insight

Westgate's 2026 expansion plans are not based on speculation alone. The company's fall 2025 program also included the drilling of two vertical stratigraphic test wells. Unlike horizontal production wells, these tests were drilled to gather crucial geological data across various prospective layers of the Mannville Stack formation within Westgate's land holdings.

The data has already yielded significant returns, providing refined geological maps that have confirmed a future inventory of drilling locations. According to the company, the tests also helped delineate the potential boundaries of oil pools in other zones, providing a clearer picture of the resource potential. This intelligence is crucial for optimizing the placement and execution of future horizontal wells, maximizing the chances of success while minimizing wasted capital.

This data-driven approach directly informs Westgate's aggressive 2026 drilling program. The company intends to drill an additional nine horizontal wells at Beaverdam throughout the year, which would bring its total producing well count in the area to 15.

"We are pleased with the overall results delivered by our second three-well program at Beaverdam," management stated in the release. "This operational refinement is expected to help guide our future drilling and completion strategies at Beaverdam in 2026 and beyond."

Navigating a Dynamic Energy Landscape

Westgate's expansion comes at a pivotal time for Canada's heavy oil producers. The Mannville Stack fairway, a formation stretching across northeast Alberta and west-central Saskatchewan, has become a hotbed of activity. Modern horizontal drilling and completion techniques have allowed producers to unlock vast medium and heavy oil resources that were previously difficult to access, delivering what the company describes as "some of the strongest oil well economics in Western Canada."

The broader market conditions appear favorable. The recent opening of the Trans Mountain Expansion (TMX) pipeline has provided Canadian producers with vital new access to Asian markets, reducing their historical dependence on the United States. This has helped narrow the price differential between Western Canadian Select (WCS) heavy crude and the North American benchmark, West Texas Intermediate (WTI), boosting revenues for producers.

However, Westgate's ambitious growth is not without contingencies. The company explicitly ties its nine-well drilling program for 2026 to an anticipated WTI price of US$60 to US$65 per barrel. This makes the company's plans highly sensitive to global energy market volatility. Forecasts for 2026 remain mixed; the Alberta Energy Regulator's base case projects a WTI price of US$68/bbl, which would support Westgate's plans, while the U.S. Energy Information Administration has offered a more bearish forecast closer to US$52/bbl. This price uncertainty represents a key variable for the junior producer's capital-intensive program.

A Veteran Team at the Helm

For a junior exploration company, navigating such market dynamics requires a steady hand. Westgate's leadership team is composed of seasoned industry veterans and "serial entrepreneurs" with a history of building and growing successful energy companies. Executives hold past leadership roles and founding credits at notable firms like Surge Energy, Blackspur Oil, and First Energy Capital, bringing decades of experience in Western Canadian resource development, capital markets, and operational execution.

This experience is reflected in the company's recent performance. Prior to this update, Westgate reported a successful 2025 drilling program that came in under budget, demonstrating a keen focus on cost efficiencies. The company also secured a US$25 million senior secured loan in April 2025, providing the necessary capital to fund its operational plans.

As Westgate looks to build on its recent successes, its focus remains on operational performance and cost control. Subject to weather and the timing of the spring breakup, the company anticipates commencing its next drilling program in late May or early June 2026, setting the stage for a transformative year.