Upon closing the acquisition, Michael Reger, former CEO, Founder, and Chairman Emeritus of Northern Oil and Gas, Inc. (NOG), will be named President of Callan Power and will be responsible for Callan Power’s domestic energy-development platform. In connection with the transaction, Mr. Reger will be appointed to the Callan JMB Board of Directors.

Long-Term Energy Platform with Near-Term Cash Generation

The acquisition adds a defined, near-term energy-development platform to Callan JMB through Callan Power, anchored by a 23-well Red River drilling program in the Williston Basin. The program is scheduled to drill one well per month from May 2027 through March 2029. Callan Power will hold a 75% working interest, while Chandler Energy, LLC will serve as operator and hold the remaining 25% working interest.

Based on the Company’s current development assumptions, the program is projected to generate approximately $252 million in cumulative net operating cash flow to Callan Power over the productive life of the wells, which would accrue to Callan JMB on a consolidated basis. The program is forecast to be cash-flow positive in its first year of drilling, generate approximately $25 million in net operating cash flow in 2028, and build to approximately $42 million in 2029, when all 23 wells are scheduled to be online.

The forecasts reflect Callan Power’s 75% working interest and approximately 83% net revenue interest, assume a flat oil price of $75 per barrel, and are based on estimated ultimate recovery of approximately 7.3 million gross barrels across the 23-well program. These projections are internal estimates and have not been audited or prepared by an independent reserve engineer.

Reger Oil generated the Red River development program from the Focus Library, one of the largest privately held libraries of 2D seismic and prospect data in the Williston Basin. The library includes original seismic field tapes and hundreds of named drilling prospects, giving Reger Oil a substantial proprietary dataset to identify and advance development opportunities using modern 3D seismic technology to confirm the 2D prospects.

Reger Oil’s proprietary Focus Library traces its origins to geological and seismic work conducted across the Williston Basin beginning in the early 1970s. The data supported a significant regional exploration program initiated by Patrick Petroleum in 1974 and was later consolidated and fully acquired by Reger Oil in 2015. Today, the library supports identifying and evaluating hundreds of conventional oil prospects across multiple producing horizons, primarily the Red River Formation, utilizing modern 3D seismic technology.

The formation of Callan Power and this asset acquisition will broaden Callan JMB’s critical-infrastructure strategy into domestic energy development. Reliable energy supply is fundamental to emergency preparedness, transportation, logistics, healthcare delivery, and operational continuity. Through Callan Power, the assets to be purchased are expected to complement Callan JMB’s existing capabilities while establishing a new potential source of recurring cash flow that could support the Company’s continued growth across its core preparedness, logistics, and infrastructure businesses.

"Energy is critical infrastructure. Emergency response, healthcare delivery, transportation and supply-chain continuity all depend on reliable access to energy," said Wayne Williams, Chief Executive Officer of Callan JMB. "The formation of Callan Power and this asset acquisition expand Callan JMB’s critical-infrastructure strategy into domestic energy development while providing the potential for meaningful, recurring cash flow beginning in the first year of drilling. We believe this platform can strengthen and diversify Callan JMB while supporting continued investment across our preparedness, logistics and critical-infrastructure businesses."

"I am honored to join the Callan JMB Board of Directors and excited to work with the Callan Power team to combine its commitment to building a domestic energy platform," said Michael Reger. "Together, we believe we have the foundation to advance a disciplined drilling program and create meaningful long-term value for Callan JMB shareholders. With one well (or more) scheduled to drill each month from May 2027, we expect the program to be cash-flow positive in its first year of drilling and build to approximately $42 million in annual net operating cash flow in 2029."