CALGARY, AB, Aug. 26, 2025 /CNW/ - Westgate Energy Inc. ("Westgate" or the "Company") (TSXV: WGT), is pleased to announce the filing of its unaudited financial and operating results for the three and six months ended June 30, 2025. Selected financial and operating information should be read in conjunction with Westgate's unaudited consolidated financial statements and related management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2025 and 2024, which are available on SEDAR+ at www.sedarplus.ca and on Westgate's website at www.westgateenergy.ca.

Financial & Operating Results Summary

 
                       Three Months Ended June 30,  Six Months Ended June 30, 
($'s, unless           2025           2024          2025           2024 
otherwise 
stated) 
Production 
Oil             bbl/d            130            86            134           87 
Natural gas     mcf/d            708           618            705          564 
NGLs            bbl/d              5             4              5            5 
Total           Boe/d            253           193            256          186 
 
Revenue: 
Crude Oil                    882,207       713,611      1,923,292    1,328,875 
Natural Gas                   78,879        43,904        188,384      129,548 
NGLs                          25,140        33,642         52,987       63,522 
Petroleum, 
 natural gas 
 and NGL sales               986,226       791,157      2,164,663    1,521,945 
Processing 
 income                        3,863         3,789          7,246        4,153 
Total 
 Revenue(1)                  990,089       794,946      2,171,909    1,526,098 
Royalties                  (127,503)      (87,026)      (282,475)    (158,914) 
Operating 
 expenses                  (384,920)     (319,159)      (891,943)    (701,827) 
Operating 
 Income 
 (loss)(1)                   477,666       388,761        997,491      665,357 
Expenditures on                    -             -              -            - 
Exploration and 
Evaluation 
Expenditures on 
 Property & Equipment 
 ("P&E")                 (4,844,842)       326,374    (5,510,942)      919,578 
Acquisition of P&E                 -             -              -            - 
REALIZED 
PRICES(2) 
Crude oil       $/bbl          74.41         91.68          79.42        83.99 
Natural gas     $/mcf           1.23          0.78           1.48         1.26 
NGLs            $/bbl          56.97         83.17          60.82        75.73 
Realized 
 Price(2)       $/boe          42.83         45.06          46.71        45.06 
Processing 
 revenue        $/boe           0.17          0.22           0.16         0.12 
Royalties       $/boe         (5.54)        (4.96)         (6.09)       (4.70) 
Royalties as a 
 percentage of 
 revenue(2)         %           13 %          11 %           13 %         10 % 
Operating 
 expenses       $/boe        (16.72)       (18.18)        (19.24)      (20.78) 
Operating 
 Netback(1)     $/boe          20.74         22.14          21.52        19.70 
 
 
(1)  Non-GAAP financial measure or non-GAAP ratio. Refer 
     to the "Advisories and Other Guidance" section within 
     this press release for additional information, including 
     reconciliations to the most directly comparable GAAP 
     measures. 
(2)  Supplementary financial measure. Refer to the "Advisories 
     and Other Guidance" section within this press release 
     for additional information on supplementary financial 
     measures. 
 

Q2 2025 ("Q2/25") Highlights

   -- Increased average production volume to 253 boe/d (51% crude oil) in Q2/25 
      as compared to 193 boe/d (45% crude oil) in Q2/24, representing a 31% 
      increase. 
 
   -- Closed a best-efforts public offering of 16,541,267 units of the Company, 
      each unit being comprised of one common share of the Company (each a 
      "Share") and one Share purchase warrant, for aggregate gross proceeds of 
      approximately $2.5 million. 
 
   -- Closed a first lien senior secured loan for up to US$25 million (the 
      "Senior Secured Loan") and made an initial draw of US$10 million. 
 
   -- Completed a three well horizontal drilling program on the Company's 
      Beaverdam asset in the Cold Lake area. The program was completed on time 
      and under budget. 
 
   -- The Shares began trading on the OTCQB Market under the symbol "WGTFF" as 
      of June 25, 2025. 

Operational Update

On August 15, 2025, the Company brought on all three wells (the "New Wells") from its previously announced three well drilling program. Currently, all of the New Wells are producing oil and management is pleased with the initial rates. The New Wells continue to clean up as expected and are being optimized on a daily basis. A more fulsome report on the production rates of the New Wells can be expected in the coming weeks once they have been fully optimized and fluid rates and oil cuts have stabilized. The Company is in the planning stages for a follow up drill program at the Company's Beaverdam assets in anticipation of continued positive results from the New Wells. The next program is expected to commence in early Q4 2025.

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 have optimized horizontal drilling in shallow heavy oil reservoirs. Applying these drilling techniques have 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.

Reader Advisories

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.

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

ADVISORIES AND OTHER GUIDANCE

Non-GAAP Financial Measures and Ratios

The Financial Statements have been prepared in accordance with IFRS. This press release contains non-GAAP financial measures, non-GAAP ratios and supplementary financial measures, including operating income (loss), operating netback, total revenue, realized price, and royalties as a percentage of revenue which are not recognized measures under GAAP. Management believes these measures are useful for reporting purposes and for evaluating the consolidated financial position of the Company but cautions readers that these measures should not be considered as alternatives to measures calculated in accordance with IFRS. Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers for these non-GAAP financial measures.

Operating Income (Loss)

Operating income (loss) is a non-GAAP financial measure calculated by subtracting the cost of royalties and operating expenses from total revenue. Operating income (loss) is a component of operating netback, a non-GAAP ratio that management believes is a key industry benchmark and a measure of performance of the Company that provides investors/readers with information that is commonly used by other petroleum and natural gas producers. For a reconciliation of operating income (loss) to revenue, the most directly comparable GAAP measure, see the table under the heading "Financial & Operating Results Summary" within this press release.

Operating Netback

Operating netback is a non-GAAP financial ratio calculated by dividing operating income (loss) by production volumes. Operating netback allows management and others to evaluate the production results from the Company's assets. Management feels that operating netback is a key industry benchmark and a measure of performance of the Company that provides investors/readers with information that is commonly used by other petroleum and natural gas producers.

Total Revenue

Total revenue is a non-GAAP financial measure calculated by adding processing revenue to petroleum, natural gas and NGL sales. Management uses total revenue to evaluate the cash flow generated from the Company's assets and believes it is useful to investors as a key industry benchmark and a measure of performance of the Company that provides investors/readers with information that is commonly used by other petroleum and natural gas producers. For a reconciliation of total revenue to petroleum, natural gas and NGL sales, the most directly comparable GAAP measure, see the table under the heading "Financial & Operating Results Summary" within this press release.

Supplementary Financial Measures

Realized Price

Realized price is a supplementary financial measure calculated as the revenue by product divided by the production by product and is a key industry benchmark and a measure of performance of the Company that provides investors/readers with information that is commonly used by other petroleum and natural gas producers.

Other Supplementary Measures

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