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

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

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

UPDATED GUIDANCE HIGHLIGHTS

• Increased 2026 average production guidance to 17,000 to 18,000 BOE/d, up 1,000 BOE/d from previous guidance of 16,000 to 17,000 BOE/d.
  • The 2026 guidance midpoint of 17,500 BOE/d delivers 34% growth over 2025 annual average production of 13,088 BOE/d.
• Second half 2026 production guidance increased to 19,000 to 20,000 BOE/d (previously 18,000 to 19,000 BOE/d), reflecting continued growth momentum.
• The expanded capital program is expected to meaningfully strengthen the Company's 2026 exit rate and will also have a significant impact on our 2027 production base.
• Increased forecast Adjusted Funds Flow to $164 million from $139 million.
• Expanded the 2026 capital budget by $55 million to $230 to $240 million from $175 to $185 million:
  • Added five net wells to the 2026 program, consisting of three net wells at Pouce Coupe and two net wells at Simonette, all expected to be onstream in the fourth quarter of 2026.
  • Advanced procurement of long-lead equipment for the North Simonette oil battery, with construction planned for the first quarter of 2027.
• Forecast year-end Net Debt of $175 million.

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

OPERATIONS UPDATE

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

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

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

LAND ACQUISITIONS

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

EXPANDED 2026 BUDGET AND UPDATED GUIDANCE

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

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

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

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

ABOUT LOGAN ENERGY CORP.

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

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

READER ADVISORIES

Non-GAAP Measures and Ratios

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

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

The definitions below should be read in conjunction with the "Non-GAAP and Other Financial Measures" section of the Company's MD&A dated May 12, 2026, which includes discussion of the purpose and composition of the specified financial measures and detailed reconciliations to the most directly comparable GAAP financial measures.

Operating Income and Operating Netback

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

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

Adjusted Funds Flow

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

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

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

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

Capital Expenditures before A&D

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

Net Debt

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

Supplementary Financial Measures

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

Assumptions for Guidance

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

Planned Activity

Guidance Sensitivities

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

Commodity Hedging

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

Other Measurements 

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

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

References in this press release to peak rates, initial production (including IP30 and IP60), producing day rates and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of Logan.

The drilling locations disclosed in this press release are unbooked locations. Unbooked locations are internal estimates based on the Company's assumptions as to the number of wells that can be drilled per section based on industry practice and internal review, being 300 to 400 meter inter well spacing and an average horizontal well length of ~3,000 meters. Unbooked locations do not have attributed reserves or resources. Unbooked locations have been identified by management as an estimation of Logan's multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that the Company will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which the Company actually drills wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relative close proximity to such unbooked drilling locations, the majority of other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.

Share Capital

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

As of the date hereof, there are 691.6 million common shares outstanding. There are no preferred shares or special shares outstanding. Logan's convertible securities outstanding as of the date of this press release include: 64.2 million common share purchase warrants with an exercise price of $0.35 per share expiring July 12, 2028; 6.8 million RSAs; and 42.5 million stock options with an exercise price of $0.78 per share and an average remaining term of 3.0 years.

Forward-Looking and Cautionary Statements

Certain statements contained within this press release constitute forward-looking statements within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "outlook", "anticipate", "budget", "plan", "endeavor", "continue", "estimate", "evaluate", "expect", "forecast", "monitor", "may", "will", "can", "able", "potential", "target", "intend", "consider", "focus", "identify", "use", "utilize", "manage", "maintain", "remain", "result", "cultivate", "could", "should", "believe" and similar expressions (or grammatical variations or negatives thereof). Logan believes that the expectations reflected in such forward-looking statements are reasonable as of the date hereof, but no assurance can be given that such expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Without limitation, this press release contains forward-looking statements pertaining to: the business plan, objectives and strategy of Logan; updated 2026 average production guidance of 17,000 to 18,000 BOE/d and second half 2026 production guidance of 19,000 to 20,000 BOE/d; the expanded 2026 capital budget of $230 to $240 million, including the addition of five net wells expected to come onstream in the fourth quarter of 2026; estimated second quarter 2026 average production; forecast Adjusted Funds Flow of $164 million and forecast year-end Net Debt of $175 million; the Company's opportunity rich assets; production growth and liquids weighting; the ability to improve capital efficiencies, operating costs and netbacks, including through the construction of the North Simonette oil battery; infrastructure benefits and value capture; the strategic importance and depth of the Company's Montney inventory; the success of the Company's 2026 drilling program based on initial results, including drilling and completion costs, the onstream timing of wells, expected production rates and the impact to economics of utilizing existing owned infrastructure; the success of the Company's growth plan including organic growth and opportunistic expansion of the Company's asset base through accretive acquisitions, including the addition of 99.4 net drilling locations in the Simonette Montney; management's belief that current commodity prices do not fully reflect underlying supply and demand fundamentals; the ability of Montney wells to deliver compelling returns across a range of commodity price scenarios; management's expectations in respect of recently completed drilling operations, including well performance at the Pouce Coupe 7-12 and 15-15 pads and planned operations at the Simonette 16-13, 6-9 and South Simonette battery; the flexibility built into the expanded capital program and the Company's ability to respond to changes in commodity prices while protecting balance sheet strength; facility construction and commissioning timing, including the South Simonette oil battery and the planned North Simonette oil battery; and commodity hedging.

The forward-looking statements and information are based on certain key expectations and assumptions made by Logan, including, but not limited to, expectations and assumptions concerning the business plan of Logan, the timing and success of future drilling, development and completion activities and infrastructure projects, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the geological characteristics of Logan's properties, the successful integration of recently acquired assets into Logan's operations, the successful application of drilling, completion and seismic technology, the Company's ability to secure sufficient amounts of water, prevailing weather conditions, prevailing legislation affecting the oil and gas industry, prevailing commodity prices, price volatility, future commodity prices, price differentials and the actual prices received for the Company's products, anticipated fluctuations in foreign exchange and interest rates, impact of inflation on costs, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners, general economic conditions, and the ability to source and complete acquisitions.

Although Logan believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Logan can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, fluctuations and volatility in commodity prices (including pursuant to determinations by the Organization of Petroleum Exporting Countries and other countries (collectively referred to as OPEC+) regarding production levels), changes in industry regulations and legislation (including, but not limited to: tax laws, royalties, and environmental regulations), the imposition or expansion of tariffs imposed by domestic and foreign governments or the imposition of other restrictive trade measures, retaliatory or countermeasures implemented by such governments, including the introduction of regulatory barriers to trade and the potential material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and demand and/or market price for the Company's products and/or otherwise adversely affects the Company; changes in the political landscape both domestically and abroad, wars (including ongoing military actions in the Middle East and Russia's invasion of Ukraine), hostilities, civil insurrections, foreign exchange or interest rates, increased operating and capital costs due to inflationary pressures (actual and anticipated), risks associated with the oil and gas industry in general, stock market and financial system volatility, impacts of pandemics, the retention of key management and employees, risks with respect to unplanned third-party pipeline outages and risks relating to inclement weather and severe weather events and natural disasters, such as fire, drought, flooding and extreme hot or cold temperatures, including in respect of safety, asset integrity and shutting-in production. The foregoing list is not exhaustive. Please refer to the MD&A and AIF for discussion of additional risk factors relating to Logan, which can be accessed on its SEDAR+ profile at www.sedarplus.ca. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Logan undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Logan's prospective results of operations and production and growth, and components thereof, including forecast production, Adjusted Funds Flow, Operating Netbacks, Net Debt, capital expenditures and guidance sensitivities, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Logan's proposed business activities for the remainder of 2026 and the expected impact of the expanded capital program. Logan and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Logan disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Changes in forecast commodity prices, exchange rates, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the Company's key performance measures. The Company's actual results may differ materially from these estimates.

Neither 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

SOURCE Logan Energy Corp.