WESTGATE ENERGY ANNOUNCES COMPLETION OF SUMMER DRILLING PROGRAM

The Two-Well Program at the Company's Core Killam Property Was Completed Under Budget, with Initial Production Results Expected to be Issued in Late September

CALGARY, AB, Aug. 6, 2024 /CNW/ - Westgate Energy Inc. ("Westgate" or the "Company") (TSXV: WGT), a high-growth junior exploration and production company targeting untapped Mannville Stack medium and heavy oil resources in East-Central Alberta and West Central Saskatchewan, confirms the successful drilling of two wells as part of the initial portion of our second half 2024 ("2H/24") drilling campaign. This summer program (the "Program") consisted of two horizontal multi-lateral oil wells drilled at the Company's core Killam property in Eastern Alberta.

The Program's first well ("16-15") was successfully drilled using a four-leg, open-hole horizontal design targeting the Mannville Sparky Formation. The well was drilled in eight days from spud to rig release, resulting in the drilling costs coming in under budget, with a total of 5,056 metres of lateral length drilled within the Sparky Formation. The 16-15 was subsequently brought on production July 28^th via an on-lease tie-in. The total field estimate cost to drill, complete, equip and tie-in this well is estimated to be $1.43 million. The coming weeks of production represent the clean up period for the 16-15 as drilling fluids are recovered and the pumping parameters optimized. Management expects the true productive capabilities of this well will be evident approximately 45 days from the on-stream date. 

The Program's second well ("11-21") has been successfully drilled as a six-leg, open-hole horizontal well, also targeting the Mannville Sparky Formation, and was drilled from a new pad within Westgate's Killam Field. The 11-21 was also drilled in eight days from spud to rig release, resulting in this well also coming in under budget, with a total of 5,140 metres of lateral length drilled in the Sparky Formation. This well is awaiting completion, equipping and a short pipeline tie-in for solution gas and is anticipated to have an on-stream date of approximately August 15^th. The total field estimate cost to drill the 11-21 is estimated to be $1.17 million, with upcoming costs related to completion, equipping and tie-in of the new pad estimated at an incremental $0.46 million. The productive capabilities of this well are expected to be observed approximately 45 days from the on-stream date. Based on a successful result from the 11-21 well, the new pad has been designed to accommodate additional follow-up wells.

Westgate anticipates releasing a report on the production rates of these two new wells in late September. Success from the Program will contribute to the Company's previously communicated average 2H/24 production range of 350 to 400 boe/d[1]. A third well at the Company's Killam Field is planned for the fourth quarter of this year, which is also expected to contribute to the previously announced 2024 exit rate of 450-500 boe/d¹.

Westgate's CEO, Dan Brown commented, "We are pleased with the outcome of our two-well summer program, highlighted by both wells coming in under budget due to our team's excellent execution. We look forward to sharing the initial production results in the coming months."

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¹ Production split is expected to be 70% crude oil and natural gas liquids and 30% natural gas.

Westgate's Differentiated Strategy

Westgate is focused on the emerging Mannville Stack fairway located in East-Central Alberta and West Central Saskatchewan. This fairway is characterized by known accumulations of medium and heavy oil which are being 'unlocked' via the application of innovative drilling techniques that utilize multi-lateral horizontal drilling. Applying these multi-lateral drilling techniques has yielded some of the strongest oil well economics across Western Canada.
The management team and board of Westgate have extensive experience building and leading successful energy companies in Canada. The collective successes of the leadership group share common characteristics: a strategy of targeting high-quality oil assets with large quantities of oil-in-place, and driving growth through successful drilling as well as strategic merger and acquisition opportunities. This proven blueprint of delivering shareholder value will be foundational to Westgate's strategy, positioning the Company as one of a select few pure-play, high-growth, publicly-traded junior oil companies focused on the Mannville Stack Fairway.

For more information, please visit www.westgateenergy.ca.

Abbreviations

bbl	barrel of oil
boe	barrel of oil equivalent
boe/d	barrel of oil equivalent per day
Mcf	thousand cubic feet

Reader Advisories

In this press release, all references to "$" are to Canadian dollars.

This press release contains metrics commonly used in the oil and gas industry. These oil and gas metrics do not have any standardized meaning or standard methods of calculation and therefore may not be comparable to similar measures presented by other companies where similar terminology is used and should therefore not be used to make comparisons. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Notice regarding forward-looking statements:

This press release includes forward-looking statements regarding Westgate and its business, which may include, but are not limited to, the commencement of the Program, the drilling and spudding of wells and timing thereof, the anticipated success of the Program, the expected 2H/24 production range, expected announcement of initial production results and timing thereof, the business and growth prospects of Westgate, and the characteristics of the Mannville Stack fairway and the unique position of Westgate in respect thereof. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative 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. The forward-looking statements included in this press release are based on management's current expectations and assumptions, including, but not limited to, the successful drilling of the two planned wells and production therefrom, the expected time to drill, complete, equip and tie-in each of the two planned wells, the Company's ability to execute its business strategy and market conditions. Although the Company believes that the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect. Forward-looking statements involve significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to, an increase in the time to drill the two planned wells and bring on to production, production from wells being less than anticipated, decreases in the price of oil and natural gas and changes in market conditions. Moreover, exploration, appraisal, and development of oil and natural gas reserves are speculative activities and involve a degree of risk. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, other than as required by law.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Westgate Energy Inc.

For further information concerning Westgate Energy Inc., please contact: Dan Brown, Chief Executive Officer and Director, Email: [email protected]; Nick Grafton, Chief Financial Officer, Email: [email protected], Phone: [phone]