Calgary, Alberta — February 25, 2026 — Leads & Copy —
Journey Energy Inc. reported its year-end 2025 oil and gas reserves evaluation, according to a press release issued February 24, 2026.
Highlights from the 2025 Reserve Report include:
Proved developed producing (PDP) reserves decreased 11% to 31.7 MMboe, with a corresponding 10% decrease in net present value discounted at 10% (NPV@10%) to $315.2 million. The PDP net asset value was $3.84 per fully diluted share. A reduction in forward pricing, particularly for oil, was largely offset by positive technical revisions and the results of the 2025 drilling program.
Proved plus probable developed producing (P+PDP) reserves were 41.1 MMboe, with an NPV@10% of $393.7 million. The P+PDP net asset value was $4.96 per fully diluted share.
Total proved (TP) reserves decreased 2% to 49.5 MMboe. An increase of 3% in NPV@10% to $552.7 million, was achieved by a reduction in future development capital (FDC) from asset sales, which was more than offset by capital additions in the Duvernay. The TP net asset value was $8.21 per fully diluted share.
Total proved plus probable (TPP) reserves increased 1% to 86.3 MMboe, with a corresponding 10% increase in NPV@10% to $972.0 million. The TPP net asset value was $14.17 per fully diluted share.
Journey’s increase in reserve value was achieved despite a reduction in the January 1, 2026 Three Consultants Average near term pricing (2026 to 2030 inclusive) of 12% for WTI from $77.59 US$/bbl to $68.12 US$/bbl, and 6% for AECO gas from $3.62 CAD/MMBTU to $3.40 CAD/MMBTU. The upside was largely driven by positive revisions to the Duvernay reserve evaluation, reflecting the improved performance for the nine wells brought on since late 2024 and the booking of additional locations delineated by 2025 drilling.
Journey achieved a significant increase in reserve bookings associated with its participation in the Duvernay joint venture. 2025 year-end TPP reserves included 12 gross (3.6 net) producing wells and 70 gross (21.0 net) locations, resulting in a TPP value of $325 million.
The majority of Journey’s growth capital over the next few years will be allocated to the Duvernay joint venture. The 2025 year-end TPP reserves for the Duvernay include $238 million of FDC, with 80% estimated to be spent during 2026 to 2030, when the Three Consultants Average forecast price for WTI is $68 US/bbl. The FDC adds reserves at a finding and development cost of $14.41 per boe, providing a 3.23:1 TPP recycle ratio given the $46.55/boe netback for the 2026 to 2030 period.
Current Duvernay bookings represent approximately 40% of potential future locations. The $238 million FDC in the 2025 reserve report generates a before tax TPP value of $267 million (approximately $3.8 million per gross location). Journey has internally identified approximately 100 gross (30 net) unbooked future locations, with this inventory derisked by offsetting wells.
Realized attractive F&D and FD&A of $16.10/boe and $22.12/boe respectively for TP reserves, and $12.36/boe and $16.36/boe respectively for TPP reserves. F&D costs exclude the impact of asset sales and are therefore more representative of the value creation within Journey’s asset base.
72% of 2025 TPP reserve extensions were attributed to higher netback oil and liquids; 52% light & medium oil; 20% NGL’s. Management believes recycle ratios calculated using Journey’s current product mix are not reflective of the potential within Journey’s undeveloped asset base, especially given the 3.23:1 recycle ratio for the Duvernay development, and the Duvernay’s dominance in the future capital expenditures.
The $448 million of TPP undeveloped FDC in Journey’s reserve report generates $524 million in future NPV@10%. The development wedge adds reserves at a development cost of approximately $10.96/boe, a cost consistent with Journey’s historical averages.
Over 80% of Journey’s booked upside resides in four key oil weighted properties. Development of these properties, along with contributions from Journey’s power business, is forecast to have a positive impact on netbacks, operating expenses and funds flow in future years.
During 2025, Journey continued to advance its power business. By the end of the first quarter of 2026, the Gilby power project is forecast to be on-stream and the Mazeppa project will be in Stage 5 of approvals. Although not included in Journey’s year-end NI 51-101 reserves, GLJ ran an economic model based upon Three Consultants’ Average pricing for natural gas and their view of future power prices. The economic value (before tax NPV@10%) of Journey’s three power projects is approximately $74.9 million. Only $5.7 million of value, for the Countess power project, is on-stream today. Therefore, the power projects provide significant upside for Journey’s producing net asset value since the remaining projects are expected to come on-stream in 2026. To date, Journey has invested approximately $55 million in the three power projects.
PDP and proved plus probable, developed, producing (P+PDP) reserve life indices were 8.7 and 11.0 years respectively. Journey’s history of positive revisions and the long producing RLI are testaments to the Company’s low decline and predictable asset base.
Reduced total undiscounted, end-of-life, liability costs by $21 million in 2025 through asset sales and capital investments.
The Company’s audited financial results for the year ended December 31, 2025, are expected to be released on March 11, 2026. Commensurate with the March 11, 2026 release, Journey plans on providing preliminary capital and production guidance for 2026, along with an update on the progress of the Power projects and the Duvernay joint venture.
Journey is a Canadian exploration and production company focused on conventional, oil-weighted operations in Alberta, Canada. Journey’s strategy is to grow its production base by drilling on its existing core lands, implementing secondary and tertiary flood projects on its existing lands, and by executing on accretive acquisitions. In conjunction with its joint venture partner, the Company has recently begun development of its Duvernay light oil resource play. In addition, Journey is continuing with its plans to grow its power generation business through its projects at Gilby and Mazeppa.
Source: Journey Energy Inc.
