Hi, thank you for the introduction, and thank you, everyone, for joining us today. With me on today's call is Gary Johnson, our Chief Financial Officer.

As I'm sure you're all aware, we released our first quarter 2026 results this morning, and we're very pleased with our quarterly results. Our first quarter resulted in the highest quarterly production, net revenue, and EBITDA in the history of the company.

This was achieved even though only March had the impact of the oil price increase. Our production in the first quarter of 4,685 barrels of oil equivalent per day is up from the fourth quarter 2025 production of 4,493 barrels a day.

Keep in mind that using our 2025 annual production, that calculates us to having a 35% compound annual production growth rate over the last 3 years. The timing of this oil price increase is fantastic for us.

We're looking to further increase our production this year, as our drilling program for drilling the Tifton-Mack wells is already underway. With that, I'll turn it over to Gary to discuss our financial results.

Thanks, Wolf, and thanks, everyone, for joining the call. I'm just going to go over a few highlights of the first quarter results, and then we can take questions at the end of the call.

All amounts are in US dollars unless otherwise stated. As you can see from the earnings release today, we had an excellent quarter, with our highest recorded quarterly revenue and adjusted EBITDA, and a strong increase in production.

Net revenue increased by 20% to $19.6 million, compared to $16.4 million in the prior-year quarter, due to the higher production. Average production was up 15% to 4,685 BOE per day, compared to 4,077 BOE per day in the prior-year quarter.

The increase was due to the wells that were drilled during 2025. Adjusted EBITDA was $14.8 million, compared to $12.8 million in the prior-year quarter, which was an increase of 16%, mainly due to higher revenues.

Our net income was $4 million, or 11 cents per basic share, compared to $5.8 million, or 16 cents per basic share in the same period of 2025. That decrease was due to a large non-cash mark-to-market unrealized loss on commodity contracts of $2.9 million.

That was due to the significant increase in oil prices in March of 2026. Operating expense was $8.00 per BOE for the quarter, compared to $7.07 per BOE in the prior-year first quarter, which was an increase of 13%.

The increase was due to workover costs on a non-operated well, reassessed natural gas and NGL prior-year gathering and processing fees, and higher water hauling costs compared to the prior-year first quarter. Our netback from operations increased 2% to $38.41 per BOE, compared to $37.55 per BOE in the prior-year quarter.

Netback including commodity contracts for the first quarter was $37.72 per BOE, compared to $37.55 per BOE in the first quarter of '25. The increases were due to higher average prices.

As you may have seen earlier this week, we announced that our credit facility was redetermined, and the borrowing capacity was increased from $65 million to $75 million. Even though our borrowing capacity has increased, we have been paying down on our credit facility.

Our net debt at the end of the first quarter was $45 million, which was down from $46 million at the end of the year. Then subsequent to the end of the quarter, we made a debt paydown of $4 million, and we plan to make an additional $4 million net paydown later in May.

With that, I'll hand it back to Wolf.

Thanks, Gary. As Gary laid out, we had a very good quarter, with us hitting our highest quarterly revenue and adjusted EBITDA in the company's history, even though the average oil prices were only $70.31 per barrel.

That's nice being able to say only $71 right now, given where current prices are. The company is in solid financial shape, paying down some of our debt from drilling the wells at the end of last year.

We're looking to continue that success we've had over the last few years. I must say that the timing of the oil price increase right now is really great, and it's benefiting our cash flow.

Overall, our plan is to continue to execute and build and grow company value for all shareholders. We're looking to continue buying back shares and drilling more wells.

We'll also continue to get the word out about the company, the shareholders, and potential shareholders. For instance, Gary and I will be attending and having one-on-one meetings at the Louisiana Energy Conference, which is from May 26th to the 28th.

I will be on a panel at that conference on the 27th. In addition, we'll also be presenting at the Lytham Virtual Spring Conference on May 28th.

With that, that concludes the formal part of our presentation, and we'd be happy to answer any questions that you now may have.

Afternoon, Wolf, Gary. Obviously, strong production quarter.

We've seen the benefit of those 2025 wells. Wolf, even since you guided, the Iran conflict seems to be now prolonged.

Maybe we get an end shorter term than that longer, but the damage to global production is clear. We see a pretty healthy strip.

Obviously, that's going to be a positive impact to your cash flows. We move through this year.

How are you thinking now about capital allocation? You've laid out this three-well drilling program.

How are you thinking about cash usage as we move through this year, and has it changed?

Thank you, Steve. Good to hear from you.

We did just have our AGM, and where we have three new board members that came on board. We've had a good meeting with them, and we're going to come up with some proposals and options that we're going to present to the board here in the coming weeks in order to determine what we do with all this extra cash flow: drilling some more wells, paying down more debt, or buying back shares.

We'll have some clarity here in the future, and hopefully we'll put out a different forecast in the future with what's going on now. I agree with you, prices are hopefully staying elevated.

The back end of the curve has come up a bit. It's not as high as really where I think it should be still.

It does give some guidance, and I'm on the same page with you as far as I think oil prices are staying up longer, the damage has been done, and that the market hasn't really taken that into account yet on a forward curve basis yet. Yeah.

All right. Can you give an update on the three-well drilling program?

Where are you in the drilling process? What's your thoughts on timing of completions and

Just drilling, and then third quarter like we put in the press release that we'll be hopefully bringing those wells on at that point in time. When we get closer, I try to stay away from that because there's fluctuations when you get exact weeks of having completions with equipment out there and things like that, I'd rather be a little vague, no offense, in order to not have everything wrong.

No, I understand. All right.

Put the higher opex this quarter, sounds like it was primarily one-timers. Are you starting to see any inflationary pressures?

No, not yet. Not yet, not on the operating side of things, and that shouldn't really change.

Most of our costs are pretty locked in. Like you said, that was an out-of-our-control, out-of-our-hands non-op rework and stuff like that.

Then a little bit on the water handling things, it's just from our fracture stimulations that we did last year for the offset wells. That a little higher water handling costs, which should start coming down again too for the future quarters.

Just to give more color on that.

On

the water hauling cost, the March cost was half of January, really it was front-loaded to the beginning of the quarter. It should keep coming down, just to give you more color.

Got it. That's helpful.

Realized prices came in a little bit better than we were modeling. Wolf, looks like the differentials were narrower.

Any color you can provide around that?

No, not really. Our differential still should be around $1.85.

It doesn't really fluctuate much per our contract itself. It's just a matter of where pricing was and that must be the fluctuations in mid-month type of thing of what took care of that.

So, Okay. Got it.

Got it. That's what I got.

Thanks, Wolf. Thanks, Gary.

All right. Thank you, Steve.

Hi, good morning, Wolf. Can you just give me an idea of sort of how the March production looked versus the January production, or maybe a run rate for April, looking at sort of how the wells that came on at the end of last year are doing so far?

We haven't put that out publicly, I can't really say that on this call either. They're just going through the natural declines like normal shale wells do, and like our wells do as well.

The wells overall are performing as expected, I can say. Everything's matching what we have forecasted for the year as well.

We're comfortable with our forecast that we've put together for the year, based on just drilling those three wells at a lower percentage rate, by the way, if you noticed that our percentage rate on those wells was I think we said 67% or something like that, and when we first announced them and we're up to in the 80s now on working interest in those wells. 88.

Yeah.

Great. Then, what will the working interest be on the next wells that you drill?

You mean these three that we're drilling, you mean? Right now they're about 88% now.

Great. Then, I scanned your 10-Q, and I didn't see any subsequent event discussing hedging.

Have you done any hedging since the end of the first quarter? Then would you discuss sort of, given your posture or your comments earlier on prices, are you going to wait to hedge a little bit more, or sort of what's your strategy on the hedging front?

The hedging, I'll give you kind of my overall thoughts on hedging in general, where it's always been, is if you can hedge in $90 to $100 longer term, you should probably do that, for a portion of your production. Like I said, the back end of the curve really hasn't come up.

It's come up, but not as much as I would like to see it come up, and I think we're going to be in for a bit stronger till then. Gary, I think we put all of our hedges in by March 31st, right?

We didn't have anything subsequent to March 31st because we met the bank requirements by the end of March.

As soon as the prices spiked up, we added some hedges right away. Then we were a little patient on some of them by adding some more longer term.

It was all done before the end of the first quarter

then. It seems like you're using more collars than you are swaps, at least beyond this second quarter.

Okay. So,

That's correct, and we also have some deferred puts in there as well. As we go out further.

Just to protect the

bottom,

not have any [unclear] ceiling.

No, I'm looking at page 6 on the Q. Great.

Thanks for your time. Got it.

Absolutely, and thanks for the questions.

Thank you.

Thank you. Congratulations, Wolf, on your continued progress here with the company.

Very eager to see how things go with your new board members and when that gradually shakes out. The question I have today is how and when or if does this dramatic decline in oil inventories here in the United States affect you?

Is all of your oil sold on the spot market? Is any of it contracted on a longer-term basis?

Are there any takeaway concerns? I know Exxon is in charge of that, but are there any kind of concerns or problems that the lower inventories and maybe even some rationing of distillate that may not be too far away here in the United States?

Any impact on you?

It'll just be extremely along the lines of just what the price is of WTI for us, on the oil side of things.

Oil price

WTI is up, then we're making more money. We do have some hedges in place that we just talked about.

It was about 50% of what our projected production is not including the new wells. Whatever our projected production was here a few months ago.

We have about 50% of that hedged and some of that, as we were talking about before, with costless collars, we can capture some of that upside that was above where the prices were at the time. The rest of it is all free-floating still.

We will definitely have the advantage of, because none of anything we're doing of having the higher prices affect our bottom line. We'd said for every $5 increase on our forecast, I think it was adding about $2.8 million, if I'm correct, Gary,

to our Right. That's correct.

That's net of the hedges we have in place.

To our EBITDA for the year. As far as takeaway, no, there's no issues.

We actually handle our own oil takeaways, but gas and NGLs are handled through Exxon.

Oh, all right. Thank you very much, and I look forward to hearing the details of the August presentation that you work with the new board.

Again, congratulations, Wolf.

Thank you very much. Appreciate your calling in.

Good to hear from you.

Good morning. Sorry, I got a cold, I'm a little croaky.

Not a problem at all, Richard.

I realize the board is new, very new.

Yep.

Are the initial indications that you will complete these three wells differently than you would have planned them before the board arrived?

We are doing our completion designs right now. New ideas are definitely being taken into account, and those are being attributed to that.

We will potentially do some tweaks to our completion designs on those wells.

Would you characterize the design changes as substantial or minimal or in the middle?

That'll be the end result as far as how they perform. Sometimes a small tweak could make a big difference.

Sometimes a larger tweak doesn't make that much of a difference. The truth will be in the pudding, to speak, and we're hoping that some of these tweaks do make a substantial difference.

We'll see. Oh.

That

When should you finish drilling?

Generally, we've budgeted about 20 days per each well. Between moves and everything else that happens.

It's about 2 months' worth of drilling, and then getting the rig out of the way, getting everything cleaned up, and getting ready for the frac crews. In general,

that's

about 3 months from start to finish.

Okey-doke. Thank you.

Thank you.

Thank you very much, and thank you, everyone, for joining, listening, and all the questions. Hope everyone has a great rest of your day, and we thank everyone for your support in the company.