Westgate Energy announces Intention to Launch Warrant Exercise Incentive Program and Operational Update
Press Release
CALGARY, ALBERTA, March 9, 2026 – Westgate Energy Inc. (“Westgate” or the “Company”) (TSXV:WGT), is pleased to announce its intention to launch a warrant exercise incentive program (the “Incentive Program”) relating to 16,241,267 outstanding common share purchase warrants (the “Eligible Warrants”) issued in connection with a best-efforts offering that closed on April 2, 2025. Each Eligible Warrant is exercisable for one common share of the Company (a “Warrant Share”) at a price of $0.24 per share until April 2, 2027.
The Incentive Program is subject to the approval of the TSX Venture Exchange (the “TSXV”).
Summary Information About Incentive Program
The Incentive Program is designed to encourage the early exercise of the Eligible Warrants for a period of 30 days from the commencement date (the “Incentive Period”). Under the terms of the Incentive Program, each holder who exercises an Eligible Warrant during the Incentive Period will receive, for each Eligible Warrant exercised, one half of an additional common share purchase warrant (an “Incentive Warrant”). Each whole Incentive Warrant will entitle the holder to acquire one additional common share of the Company (a “Common Share”) at an exercise price of $0.35 per share for a period of 18 months from the date of issuance.
In the event that the volume-weighted average price of the Common Shares on the TSXV equals or exceeds $0.45 for ten consecutive trading days (an “Acceleration Event”), the Company will be entitled to accelerate the expiry of the Incentive Warrants. If the Company elects to do so, it will issue a press release announcing the Acceleration Event, and the Incentive Warrants will thereafter expire 30 calendar days from the date of such notice.
All Incentive Warrants will be issued to participating holders promptly following the expiry of the Incentive Period.
The Incentive Warrants, and any Common Shares issued upon exercise thereof, will be subject to a statutory hold period of four months and one day from the date of issuance of the Incentive Warrants, in accordance with applicable Canadian securities laws.
Eligible Warrants that remain unexercised after the Incentive Period will continue to be exercisable on their original terms until April 2, 2027. However, no Incentive Warrants will be issued in respect of any Eligible Warrants exercised after the Incentive Period.
Depending on the number of Eligible Warrants exercised during the Incentive Period, the Company expects to:
· receive gross proceeds of up to approximately $3,897,900;
· issue up to 16,241,267 Warrant Shares pursuant to the exercise of Eligible Warrants in accordance with the terms of the Eligible Warrants; and
· issue up to 8,270,633 Incentive Warrants pursuant to the exercise of the Eligible Warrants.
The Incentive Program is subject to the approval of the TSXV. Upon receipt of approval, the Company will issue a press release confirming the details of the Incentive Program and outlining the Incentive Period.
If you have exercised Eligible Warrants in the six months prior to the commencement of the Incentive Period, please contact the Company prior to the end of the Incentive Period.
Use of Proceeds
The proceeds received from the early exercise of Eligible Warrants are expected to be used to fund the pre-drilling costs related to the Company’s potential spring drilling program, additional operating cost reduction activities at Beaverdam, as well as for general working capital purposes.
Operational Update
The Company reports that current corporate production is approximately 775 boe/d, as several wells continue to clean up following recent workovers and pump replacements. Production is expected to increase to approximately 850 boe/d by month-end as these wells stabilize.
Additionally, the most recently drilled Colony Formation well from the Company’s November drilling program has achieved a new peak production rate, with the most recent weekly average exceeding 180 bbls/d. The Company is very encouraged by the performance of this latest Colony well, as the Colony Formation represents the largest contributor to the Company’s drilling inventory at Beaverdam. Planning is currently underway for a potential spring drilling program focused on the Colony Formation.
The Company also reports that its previously announced tank treating facility has now been commissioned. The facility is already improving oil capture and is reducing operating costs associated with current production. As previously disclosed, the facility has capacity to service up to 25 additional wells, which would similarly benefit from increased oil recovery and lower operating costs.
About Westgate
Westgate is focused on the emerging Mannville Stack fairway located in North-East Alberta and West Central Saskatchewan, a region with established medium and heavy oil accumulations. Producers in this fairway are increasingly unlocking these reservoirs with modern horizontal drilling and completion techniques, which have materially improved well performance and capital efficiency. Activity to date has delivered some of the strongest oil well economics in Western Canada.
For more information, please visit www.westgateenergy.ca.
For further information concerning Westgate Energy Inc., please contact:
Dan Brown
Chief Executive Officer and Director
Email: dbrown@westgateenergy.ca
Nick Grafton
Chief Financial Officer
Email: ngrafton@westgateenergy.ca
Phone: 403.984.6724
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