The board of directors of the Company has approved the renewal of its normal course issuer bid (the "Bid") to purchase up to an aggregate of 1,797,574 common shares ("Shares"), being approximately 5% of the total number of 35,951,495 Shares issued and outstanding as at September 18, 2026, through the facilities of the Nasdaq Capital Market (the "Nasdaq"). The actual number of Shares which may be purchased pursuant to the Bid will be determined by management of the Company.

OPERATIONS UPDATE

Clifton Mack Wells

The Company has successfully completed fracture stimulation on all three Clifton Mack wells: the Clifton Mack 11-14-1HR (99.03% WI), Clifton Mack 11-14-2HR (97.36% WI), and Clifton Mack 11-14-3HR (97.45% WI) wells. The team has just finished drilling out the fracture stimulation plugs. Flowback on all three wells will start shortly, and we expect to report early production rates in a few weeks.

False Caney Well

The Company finished drilling the lateral of the Lovina 8-5-1HF well (99.9% WI) and is anticipating beginning fracture stimulation of the 1.2-mile lateral early in the fourth quarter.

Wolf Regener, CEO and President, commented, "We are excited that the Clifton Mack wells will be coming online shortly and that we completed drilling the Lovina 8-5-1HF well, which is our first test of the False Caney bench. We expect these wells to add significant production and, in the case of the Lovina well, to begin testing to prove up a new bench, which would lead to additional development locations. The Clifton Mack well locations were probable locations in the Company’s December 31, 2025 reserve report, so they will be converted to proved reserves in the next reserve report. The Lovina well location, being in a new bench, was not included in the reserve report at all. With oil prices currently around $100 a barrel, the timing of new production from these wells is looking much better than the $70 a barrel price we anticipated in our June 29th 2026 forecast.

"The cash flow generated will be used to pay down debt, return capital to shareholders, and, if oil prices remain elevated, should also provide us the ability to drill more wells sooner than anticipated. In addition, proving up a new production horizon in the False Caney bench would add additional drilling locations and potential reserves to our December 2026 Reserve Report.