WESTGATE ENERGY ANNOUNCES Q2 2024 FINANCIAL RESULTS

CALGARY, AB, Aug. 30, 2024 /CNW/ - Westgate Energy Inc. ("Westgate" or the "Company") (TSXV: WGT), is pleased to announce the filing of its unaudited financial and operating results for the three and six months ended June 30, 2024. Selected financial and operating information should be read in conjunction with Westgate's unaudited consolidated financial statements and related management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2024 and 2023, which are available on SEDAR+ at www.sedarplus.ca and on Westgate's website at www.westgateenergy.ca.

Q2 2024 ("Q2/24") Financial and Operational Highlights

• Quarterly Production Growth – Achieved average daily production of 193 boe/d during Q2/24, exceeding Q1/24 by more than 8%.
• Increasing Operating Netback⁽¹⁾ – Improved the operating netback to $22.14/boe, driven by a lower operating expense of $18.18/boe versus a Q1/24 operating expense of $23.60/boe.
• Completed Go-Public Transaction – Closed the Company's go-public transaction on May 23, 2024, which is intended to provide broader access to capital and facilitate Westgate's ability to complete M&A transactions.
• Raised Over $7.0 million of Equity Financing – Proceeds from additional equity financing fully fund the 2024 drilling budget and ensure a strong, debt free balance sheet.
• Significantly Higher Realized Oil Pricing – The Company improved its realized oil price at the wellhead during Q2/24 due to optimizing the marketing of Killam's 29^o API oil.

Q2/24 Financial & Operating Results Summary

($'s, unless otherwise stated)		Q2-2024	Q1-2024	Q4-2024	Q3-2023
Production
Oil	bbl/d	86	88	33	36
Natural gas	mcf/d	618	511	437	510
NGLs	bbl/d	4	5	4	5
Total	boe/d(6:1)	193	178	110	126
Revenue:
Crude oil		713,611	615,264	272,172	322,601
Natural gas		43,904	85,644	81,264	106,044
NGLs		33,642	29,880	25,844	31,636
Petroleum, natural gas and NGL sales		791,157	730,788	379,280	460,281
Processing revenue		3,789	364	13,404	-
Total Revenue(1)		794,946	731,152	392,686	460,281
Royalties		(87,026)	(71,888)	(66,866)	(60,554)
Operating expenses		(319,159)	(382,668)	(345,366)	(281,235)
Operating Income (loss)(1)		388,761	276,596	(19,548)	118,492
Expenditures on property and equipment		(326,374)	(593,204)	(2,466,978)	(93,800)
Acquisition of property and equipment		-	-	(11,683)	-
REALIZED PRICES(2)
Crude oil	$/bbl	91.68	76.54	89.36	97.91
Natural gas	$/mcf	0.78	1.84	2.02	2.26
NGLs	$/bbl	83.17	68.81	66.31	70.29
Realized Prices	$/boe	45.06	45.06	37.43	39.82
Processing revenue	$/boe	0.22	0.02	1.32	-
Royalties	$/boe	(4.96)	(4.43)	(6.60)	(5.24)
Royalties as a percentage of revenue(2)	%	11 %	10 %	18 %	13 %
Operating expenses	$/boe	(18.18)	(23.60)	(34.08)	(24.33)
Operating Netback(1)	$/boe	22.14	17.05	(1.93)	10.25
(1) Non-GAAP financial measure. Refer to the "Non-GAAP Measures" section within this MD&A for additional information on non-GAAP financial measures. (2) Supplementary financial measure, Refer to the "Supplementary Measures" section within this MD&A for additional information.

Operations Update

As previously communicated, the Company drilled two horizontal multi-lateral oil wells in July. These wells are now both on production and recovering load fluid. The Company expects to be in a position to provide a production update by the end of September.

Westgate's Differentiated Strategy

Westgate is focused on the emerging Mannville Stack fairway located in East-Central Alberta and West Central Saskatchewan. This fairway is characterized by known accumulations of medium and heavy oil which are being 'unlocked' via the application of innovative drilling techniques that utilize multi-lateral horizontal drilling. Applying these multi-lateral drilling techniques has yielded some of the strongest oil well economics across Western Canada. The management team and board of Westgate have extensive experience building and leading successful energy companies in Canada. The collective successes of the leadership group share common characteristics: a strategy of targeting high-quality oil assets with large quantities of oil-in-place, and driving growth through successful drilling as well as strategic merger and acquisition opportunities. This proven blueprint of delivering shareholder value will be foundational to Westgate's strategy, positioning the Company as one of a select few pure-play, high-growth, publicly-traded junior oil companies focused on the Mannville Stack Fairway.

For more information, please visit www.westgateenergy.ca.

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SOURCE Westgate Energy Inc.

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