The independent evaluation by GLJ Ltd. of Coelacanth Energy Inc. reserves, effective December 31, 2026, provides the foundation for this update and follows the reporting standards of NI 51-101 and the COGE Handbook. All financial figures are presented in Canadian dollars. The GLJ assessment used the GLJ (2026-01) future price forecast as its economic framework and the Company refers readers to its Annual Information Form dated April 21, 2026 on SEDAR+ for complete disclosure of net reserves and additional details.
In 2026 Coelacanth invested $80.6 million in the Two Rivers Montney Project, allocating $42.2 million to core processing and transport systems, including completion of the Two Rivers East battery and related pipelines. With that infrastructure now commissioned and carrying meaningful spare capacity, the Company is positioned to redirect capital toward drilling and completions. The capital program also funded the drilling, completing and equipping of three Lower Montney pad wells and a strategically important step-out well (12-27) in the southwest portion of Coelacanth’s 150-section block. The 12-27 was cored across several Montney benches, providing geological and petrophysical inputs for future development, and is expected to be completed for production testing within the next 12–18 months, although its remote setting means it will not be tied in immediately.
Table of Contents:
Reserve growth and economic value
Coelacanth reported a substantial expansion in booked volumes and associated economic metrics. Total Proved Producing reserves grew by 672%, rising to 14.2 million boe from 1.8 million boe, while the NPV (10%) of those producing proved reserves increased to $168.4 million, a change of 1,036% compared with the prior period. On a broader basis, Total Proved plus Probable reserves increased by 33% to 36.7 million boe, with the NPV (10%) for proved plus probable reserves rising to $362.5 million, up 51%. These headline metrics reflect a conservative booking approach: reserves were recorded on less than 8% of the Company’s Lower Montney acreage and under 2% of its Upper Montney acreage, and the GLJ report only includes $113.8 million of future development capital in the booked program.
Operational progress and the development pathway
Infrastructure investments
The 2026 infrastructure program was deliberate and capacity-led. By prioritizing the Two Rivers East battery and pipeline works, Coelacanth created a processing backbone with headroom to handle additional future production. This strategic sequencing—establishing processing and takeaway before broad drilling—reduces near-term tie-in constraints and lowers the marginal cost of bringing new wells online. The Company’s stated plan is to delineate multiple Montney zones across its land base, then accelerate output via pad drilling while continuing to secure permitting and construct complementary facilities and pipelines that will be required as volumes grow.
Drilling, testing and acreage management
Drilling activity in 2026 centered on three Lower Montney pad wells and the key step-out well 12-27, which was cored through several benches to refine reservoir understanding. These targeted wells are part of a staged approach to convert lands and geologic information into producing reserves over time. Coelacanth’s approach emphasizes measured expansion—moving resources into booked reserves as technical confidence and infrastructure allow—rather than booking across its entire acreage at once. The company expects to complete and test the 12-27 well within the next 12–18 months, and will sequence tie-ins to match infrastructure and market access.
Accounting, economics and risk disclosures
The GLJ evaluation follows NI 51-101 and accepted engineering practices to estimate recoverable volumes and the future net revenues associated with those volumes. Readers should note the distinction between working interest (gross) reserves and net reserves reported in Coelacanth’s AIF dated April 21, 2026 on SEDAR+. The Company presents discounted values at multiple rates; for example, the GLJ analysis summarizes undiscounted and discounted future net revenue and provides the standard after-tax and before-tax valuations. As with any reserve estimates, the outcomes are sensitive to commodity prices, costs, assumed operating performance and regulatory settings. The release therefore reiterates the forward-looking caution: estimates, price forecasts and planned capital programs are subject to uncertainty and may change as operations progress and markets evolve.
For investors and stakeholders, the key takeaways are that Coelacanth has materially increased its booked reserves and discounted reserve value while retaining a conservative development footprint on its acreage, completed significant processing infrastructure that creates optionality for scaling, and continues to add technical data through targeted drilling and coring. The Company has disclosed that all required NI 51-101 information is included in its 2026 AIF filed on SEDAR+, and it encourages readers to consult that filing and the GLJ report for complete tables, price assumptions and the reconciliation of reserve changes.
