Calgary, Alberta--(Newsfile Corp. - November 4, 2026) - Lotus Creek Exploration Inc. (TSXV: LTC) ("Lotus Creek" or the "Company") is pleased to provide the following third quarter operating results and operational update to shareholders. Lotus Creek's Interim Consolidated Financial Statements and related Management's Discussion and Analysis ("MD&A") for the period ended September 30, 2026 are available for review on Lotus Creek's website at www.lotuscreek.ca and on Lotus Creek's SEDAR+ profile at www.sedarplus.ca.

QUARTERLY HIGHLIGHTS

• The Company's third quarter adjusted funds from operations ("adjusted FFO") were the highest since inception on February 5, 2025. Adjusted FFO for the third quarter of 2026 was $12.9 million compared to $1.9 million for the third quarter of 2025 and $7.5 million for the second quarter of 2026. See "Non-GAAP and Other Financial Measures" in this press release.

• Cash flows from operating activities for the third quarter of 2026 were $15.5 million compared to $6.7 million for the third quarter of 2025 and $5.5 million for the second quarter of 2026.

Table 1

 
(1) Adjusted funds from operations does not have any standardized meanings under Canadian generally accepted accounting principles ("GAAP") and therefore may not be comparable to similar measures presented by other entities. For additional information related to these measures, including a reconciliation to the nearest GAAP measures, where applicable, see "Non-GAAP and Other Financial Measures".

• Lotus Creek's third quarter production was its highest quarterly production on record since inception. The Company has organically grown production from 1,425 boe per day in the third quarter of 2025 to 4,157 boe per day in the third quarter of 2026. Production for the third quarter of 2026 was comprised of 2,105 bbl per day of crude oil, 733 bbl per day of NGLs and 7,911 mcf per day of natural gas. Production increased from the previous quarter of 3,417 boe per day mainly due to the increase in production from the new wells drilled during the year.

Table 2

 

• As at September 30, 2026, the Company had $8.6 million drawn on its credit facilities, net debt of $12.8 million and net debt to quarterly funds from operations of 0.2 times. During the third quarter of 2026, the Company invested a total of $24.4 million of capital. See "Non-GAAP and Other Financial Measures" in this press release.

• Lotus Creek generated net income of $2.0 million for the third quarter of 2026 compared to a net loss of $0.3 million for the third quarter of 2025 and net income of $5.8 million for the second quarter of 2026. Net income in the third quarter of 2026 was inclusive of a $4.0 million unrealized loss on outstanding risk management contracts.

OPERATIONAL UPDATE

Increased 2026 Guidance

• As a result of the Company's 2026 drilling program and production performance exceeding expectations, Lotus Creek has increased its 2026 annual average production guidance to 3,900 - 4,300 boe per day and its fourth quarter average production guidance to 5,100 - 5,500 boe per day.

• During October 2026, corporate production averaged approximately 5,500 boe per day, consisting of approximately 2,900 bbl per day of oil, 900 bbl per day of NGLs and 10,100 mcf per day of natural gas.

Infrastructure Capacity and Development Outlook

• The Company's first 12 gross (11.9 net) development wells have advanced the delineation and de-risking of its 100+ well drilling inventory at Wilson Creek, while bringing existing infrastructure to capacity. Building on these results, Lotus Creek is preparing for infrastructure expansion in 2027 to support continued development and production growth toward the Company's 10,000 boe per day objective.

• The Company expects to provide further details on its infrastructure expansion strategy in conjunction with the release of its 2027 capital budget, anticipated before year-end 2026.

2026 GUIDANCE

The Company has increased its annual production guidance and its Q4 average production guidance. The Company has also adjusted its annual crude oil and NGLs weighting percentage.

Table 3

 
(1) As previously announced on April 27, 2026.

The following table summarizes selected highlights for the three and nine months ended September 30, 2026: