WesCan Energy Corp. (TSXV: WCE) reported financial and operating results for the fiscal year ended March 31, 2026, highlighting a transformative period driven by a multilateral horizontal oil well at Provost, Alberta. The well, brought on production during the year, increased fourth-quarter production by 61% to 212 boe/d and full-year production by 17% to 172 boe/d, with production remaining approximately 87% weighted to oil and liquids. The company’s operating netback expanded by 50% to $25.89/boe for the year and surged 270% to $32.61/boe in the fourth quarter, despite a 14% decline in benchmark WTI prices. Operating costs decreased by 25% to $1,980,529 and by 36% on a per-boe basis to $31.56/boe.
Adjusted funds flow increased by 134% to $1,231,177, and cash flow from operating activities rose 81% to $1,064,053. The net loss narrowed by 43% to $452,649, though it continued to reflect non-cash depletion, depreciation, and accretion of $1,282,386. The fiscal 2026 capital program, totaling $1,696,563, converted approximately 108 MBOE from proved undeveloped to proved developed producing reserves, resulting in proved developed producing reserves of 264.8 MBOE, approximately 107% replacement of the year’s production.
“Fiscal 2026 was the year WesCan turned the corner,” said Leo Berezan, Chief Executive Officer and Chairman. “We proved up a repeatable, oil-weighted development play at Provost, more than doubled our adjusted funds flow, and converted booked undeveloped reserves into production – all from a single, disciplined capital program.” Sarshar Ahmed, Chief Operating Officer, added that the Provost multilateral “lifted fourth-quarter production 61%, cut our operating cost per barrel by more than a third, and expanded our operating netback by 50% even as oil prices weakened.”
The Provost well, WesCan 104 Provost 15-27-38-3, has recently produced at approximately 90 bbl/d of medium-gravity oil (29° API), trucked to market for WTI-based pricing. The company acquired a 3D seismic trade license and an additional half section (approximately 320 acres) of acreage to further evaluate the play. For fiscal 2027, WesCan plans a program comprising one multilateral horizontal well and one well re-entry at Provost, targeting the same oil-weighted reservoirs. The re-entry is expected to utilize existing wellbore infrastructure. Beyond this, management has identified potential follow-up development locations, which remain subject to further technical evaluation, regulatory approval, and available financing.
Net debt increased to approximately $3.0 million at year-end, and the working capital deficiency was $1,341,723. The financial statements include a going-concern note, and the company expects to require additional financing to fund future development. No commodity hedges were in place during or at the end of the year. The company’s reserves were independently evaluated by McDaniel & Associates Consultants Ltd., with total proved reserves at 396.8 MBOE and proved plus probable reserves at 497.5 MBOE. WesCan will continue to prioritize cost control, well re-activation, and strengthening its financial position, while remaining disciplined on capital allocation. Detailed financial information is available on SEDAR+ at www.sedarplus.ca.
