WesCan Energy Corp. (TSXV: WCE) reported its financial and operating results for the year ended March 31, 2026, marking a significant turnaround driven by a multilateral horizontal oil well at Provost, Alberta. The well materially increased production, expanded operating netbacks by 50%, reduced operating costs per barrel by 36%, and more than doubled adjusted funds flow, converting booked undeveloped reserves into production.
Fourth-quarter production rose 61% to 212 boe/d, and full-year production increased 17% to 172 boe/d, with approximately 87% weighted to oil and liquids. Operating netback expanded 50% to $25.89/boe for the year and 270% to $32.61/boe in the fourth quarter, despite a 14% decline in benchmark WTI prices. Operating costs decreased 25% to $1,980,529, and 36% on a per-boe basis to $31.56/boe. Adjusted funds flow increased 134% to $1,231,177, and cash flow from operating activities increased 81% to $1,064,053. Net loss narrowed 43% to $452,649, reflecting non-cash depletion, depreciation, and accretion of $1,282,386. Proved developed producing reserves increased to 264.8 MBOE, approximately 107% replacement of the year's production, as the new well converted about 108 MBOE from proved undeveloped to producing.
“Fiscal 2026 was the year WesCan turned the corner,” said Leo Berezan, CEO 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. That is the foundation we intend to build on.” Chief Operating Officer Sarshar Ahmed added, “The Provost multilateral changed the trajectory of our operations. It 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.”
During fiscal 2026, WesCan drilled and brought on production the multilateral horizontal well at Provost (WesCan 104 Provost 15-27-38-3), which recently produced at approximately 90 bbl/d of oil. The well converted about 108 MBOE from proved undeveloped to proved developed producing, confirming the productivity of the multilateral horizontal development concept. WesCan also acquired a 3D seismic trade license and an additional half section (approximately 320 acres) of acreage to further evaluate the play.
Financially, petroleum and natural gas revenue increased 5% to $4,232,059, as a 17% increase in production more than offset a 14% decline in benchmark WTI prices. Royalties were $626,678, or 14.8% of revenue, reflecting a production-mix shift toward freehold lands at Provost. Operating costs decreased 25% to $1,980,529 and fell 36% per boe to $31.56/boe, driven by fixed-cost absorption and the non-recurrence of a one-time workover program. Adjusted funds flow increased 134% to $1,231,177. The Company invested $1,696,563 in the Provost program, and net debt increased to approximately $3.0 million. WesCan expects to require additional financing to fund future development.
Reserves were independently evaluated by McDaniel & Associates Consultants Ltd. effective March 31, 2026. Proved developed producing reserves increased to 264.8 MBOE, total proved reserves were 396.8 MBOE, and proved plus probable reserves were 497.5 MBOE. For fiscal 2027, WesCan plans one multilateral horizontal well and one well re-entry at Provost, both targeting the same oil-weighted reservoirs. The company has identified potential follow-up development locations, which remain subject to further evaluation. WesCan will continue to prioritize cost control, well re-activation, and strengthening its financial position.
For further information, company filings are available on SEDAR+ at www.sedarplus.ca.
