WesCan Energy Corp. (TSXV: WCE) reported its financial and operating results for the fiscal year ended March 31, 2026, marking a significant turnaround driven by a multilateral horizontal oil well at Provost, Alberta. The company achieved a 50% expansion in operating netbacks, a 134% increase in adjusted funds flow, and a 61% increase in fourth-quarter production, establishing a repeatable, oil-weighted development play.
Fourth-quarter production rose 61% to 212 boe/d, while 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 approximately 108 MBOE from proved undeveloped to producing. Total proved reserves were 396.8 MBOE, and proved plus probable reserves were 497.5 MBOE.
Leo Berezan, CEO and Chairman, stated, "Fiscal 2026 was the year WesCan turned the corner. 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." COO 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 WesCan 104 Provost 15-27-38-3 multilateral horizontal oil well, which recently produced at approximately 90 bbl/d of 29° API medium-gravity oil. 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 at Provost comprising one multilateral horizontal well and one well re-entry, both targeting the same de-risked reservoirs. The re-entry is expected to utilize existing wellbore infrastructure. Management has identified potential follow-up development locations on the company's Provost acreage, subject to further technical evaluation, regulatory approval, and available financing.
WesCan invested $1,696,563 in the Provost program during the year. Net debt increased to approximately $3.0 million at March 31, 2026, and the company expects to require additional financing to fund future development. The financial statements include a going-concern note. WesCan had no commodity hedges in place during or at the end of the year.
Reserves were independently evaluated by McDaniel & Associates Consultants Ltd. effective March 31, 2026, using forecast prices and costs. Proved developed producing reserves increased to 264.8 MBOE, as the Provost well converted approximately 108 MBOE from proved undeveloped to producing. Total proved reserves were 396.8 MBOE, and proved plus probable reserves were 497.5 MBOE.
This news matters because WesCan has demonstrated a repeatable, oil-weighted development play that significantly improves financial metrics and reserves conversion, potentially setting a foundation for sustained growth in the Alberta oil region. The company's success at Provost could serve as a model for other junior energy companies seeking to optimize production and netbacks through multilateral drilling technology.
For further information, company filings are available on SEDAR+ at www.sedarplus.ca.
