Journey Energy (JOY) Status Update summary

Asset base and production outlook

• Holds conventional assets with about a billion barrels of oil in place and a flagship Medicine Hat Glauc Pool acquired in 2022, offering high returns and long-term production stability.

• Medicine Hat infill drilling yields over 60% rates of return and sub-two-year payouts at CAD 60 oil, with polymer flood expansion planned to sustain output into the 2040s.

• First quarter 2025 production averaged 11,000 BOE/d, with full-year guidance of 10,800-11,000 BOE/d.

• Stable cash flow from conventional assets funds growth in the Duvernay, with blowdown value estimated at CAD 350 million and 2P value over CAD 700 million.

Duvernay joint venture and development

• Holds a 30% working interest in a joint venture with Spartan Delta in the Duvernay Shale, with 200 gross drilling locations and a multi-year development plan.

• Seven gross wells planned for 2025, ramping to 12 in 2026; recent wells outperform type curves, prompting a 10% upward revision.

• Development plan targets 8,000 BOE/d by 2031, with 83 gross wells drilled by then and significant upside remaining.

• Netback for Duvernay wells estimated at CAD 47.50, with rapid payback and high capital efficiency.

Power generation business

• Two natural gas-fired power plants (Gilby and Mazeppa) nearing completion, expected to add 30 MW of capacity and hedge against volatile Alberta power prices.

• Over CAD 30 million invested; projects delayed by regulatory and grid connection issues but expected online by October 2025 (Gilby) and June 2026 (Mazeppa).

• Power business seen as a long-term value driver, reducing operating cost volatility and providing sustainable cash flow.