CanCambria Energy has announced a technical and commercial update for the Soltvadkert/Tazlar/Alpar Shallow Oil Fairway ("STA Fairway"), highlighting continued advancement of the project and outlining key milestones expected to drive value creation going forward. Among these is the Company's plan to acquire its own 3D seismic survey over the STA Fairway, with acquisition currently targeted for late 2H, 2026 subject to customary regulatory approvals.

Key Highlights:

• Emerging shallow oil opportunity within CanCambria's 100%-owned Kiskunhalas Concession Area complements the Company's flagship deep tight-gas project
• Ten oil field prospects identified across an 80,000-acre fairway where adjacent oil fields have collectively produced approximately 160 MMBOE(1)
• Area analogs indicate a target mean oil field size of approximately 15 MMBOE
• Each oil prospect targets mean prospective net revenue of up to US$567 million (net of royalties and taxes)(2) providing exposure to a multi-billion-dollar resource potential
• 3D seismic program planned in 2H, 2026 to refine final pre-drill prospect definition and advance evaluation of the low-cost, fast-cycle development opportunities, leveraging existing infrastructure
• Further strengthens the Company's existing portfolio, which includes a strategic US$1.76 billion NPV10, risked, development pending, contingent tight-gas resource

The Company has identified a prospective trend across the STA Fairway (see Map), where substantial undeveloped potential has been recognized for both conventional and unconventional hydrocarbon accumulations. The STA Fairway is supported by neighboring analog fields that have collectively produced over 160 million barrels of oil equivalent (MMBOE)(1) underscoring the region's significant resource potential. While the STA Fairway is not currently covered by 3D seismic data, the Company has identified ten leads and prospects based upon 1980s vintage 2D seismic and continues to advance the technical evaluation of these opportunities. The Company estimates a potential mean revenue value for the identified shallow oil opportunities of up to USD US$567 million (after royalty and tax).

Dr. Paul Clarke, President and Chief Executive Officer, commented, 
"We are delighted to have the opportunity to further evaluate this large, underexplored yet proven petroleum system. We believe significant value can be unlocked for our shareholders through the application of modern 3D seismic technologies and is consistent with our business model of low-cost entry and capital efficient prospecting. This new proprietary seismic will de-risk our existing inventory of prospects and help to identify further opportunities across the trend."

Legacy Activity Underpins the Basin's Potential

The STA Fairway encompasses the northern portion of the Company's extensive, contiguous 100%-owned Kiskunhalas Concession Area ("KCA"), covering approximately 320 km² (80,000 acres) – nearly three times the size of the adjacent BA-IX mining license, where CanCambria is advancing appraisal activities on its tight-gas resource.

Of particular interest is the established conventional and unconventional oil and gas production from multiple shallow reservoirs at depths of less than 2,000 meters. Nearby fields within this proven hydrocarbon system have collectively produced approximately 160 MMBOE(1) demonstrating the region's productive capacity.

Many of these fields were originally discovered using gravity and magnetic surveys, supplemented by limited 2D seismic data, and were developed during the 1970s and 1980s using vertical drilling techniques. As a result, historical recovery factors are believed to be materially below those achievable with modern exploration, drilling, completion, and reservoir management technologies, highlighting the potential for additional resource development across the STA Fairway.

Recent activity by MOL Group ("MOL") continues to highlight the renewed industry interest in the STA Fairway, with MOL deploying advanced, seismic-driven exploration workflows and acquiring several new 3D seismic surveys. Most notably, MOL completed the Bocsa 3D seismic survey in January 2026 within their Kiskőrös concession, immediately north of the KCA.

Building on this momentum, CanCambria is advancing plans to acquire its own 3D seismic survey over the STA Fairway, with acquisition currently targeted for 2H, 2026, subject to customary regulatory approvals. The survey is expected to significantly enhance subsurface imaging, support prospect maturation, and further refine future exploration and development opportunities across the STA Fairway.

Dr. Clarke continued, 
"A proprietary state-of-the-art 3D seismic program is being planned for 2H, 2026 and is expected to delineate multiple high-impact drilling locations across the STA Fairway. We see considerable upside through the application of modern horizontal drilling and completion techniques and believe these technologies have the potential to improve operational efficiency, increase recovery factors, and enhance project economics. Collectively, the CanCambria team has drilled and completed several hundred horizontal wells across multiple basins over the past two decades, providing valuable expertise that can be applied to the development of this opportunity."

The Company expects to provide a prospective resource disclosure, prepared by qualified persons as a National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101") report associated with these exploration targets once the new 3D seismic volumes are available and the number, size and risk of these opportunities have been defined.

Kiskunhalas Concession Area Map

Shallow Oil Technical and Commercial Overview: STA Fairway

Strategic Land Position

• 100% working interest in the KCA, encompassing approximately 233,000 acres in southern Hungary
• Focused evaluation area of approximately 80,000 acres within the STA Fairway targeting shallow, oil-weighted exploration opportunities
• Located within a proven hydrocarbon fairway adjacent to multiple producing oil and gas fields and established production infrastructure
• Continued industry activity in the basin, including recent 3D seismic acquisition programs by offset operators
• Considerable interest in the region during the 8th Concession round that CanCambria won

Proven Petroleum System

• More than 400 wells drilled across the KCA, supporting cumulative production of approximately 160 MMBOE from over 15 fields(1)
• Mean (Swanson) field size of 15 MMBOE production from existing activity
• Historic production established from multiple reservoir intervals ranging from Pannonian to Triassic age
• Early discoveries utilizing gravity and magnetic surveys yielded approximately 100 MMBOE, while subsequent 2D seismic programs contributed an additional approximately 60 MMBOE1 through new discoveries and field extensions.
• Produced oils range from 22° to 40° API gravity
• Limited exploration activity since the 1990s, with no modern 3D seismic coverage and minimal application of contemporary drilling and completion technologies
• Up-dip shallow gas (including biogenic gas window) is demonstrated from a small number of wells, not valued here by the Company, but will be covered by the new 3D.

Technical Highlights

• Ten identified prospects and leads interpreted from legacy 2D seismic and well control data.
• Multiple conventional and unconventional targets, including Pannonian and Neogene sandstones, Cretaceous carbonates and fractured basement reservoirs
• Structural and stratigraphic trapping mechanisms identified across prospect areas ranging from approximately 200 to 2,000 acres
• Several prospects exhibit direct hydrocarbon indicators, providing additional exploration confidence
• Potential application of modern horizontal drilling and completion technologies across selected unconventional targets

Development Potential

• Planned proprietary 3D seismic acquisition targeted for 2H, 2026 to refine prospect mapping and optimize future drilling locations
• Initial drilling anticipated in 1H 2027 following seismic acquisition, interpretation and prospect maturation
• Fast-cycle development opportunities with anticipated drill-to-production timelines of approximately one month (target depths range from 1,400 to 2,000 meters)
• Well count from existing portfolio of prospects is up to 50 locations (vertical)
• Development activities expected to proceed in parallel with the Company's deep tight-gas appraisal program

Economics and Scalability

• Attractive well economics supported by premium European oil and natural gas pricing
• Low-cost, vertical oil well cost ranges from $2.75 to $3.75 million, considerably cheaper than drilling for deep gas targets
• Light-oil project with per-well "internal rate of return" (IRR) exceeding the corporate 40% (ATAX) benchmark, with a payout of <12 months, at $70 oil (US$3.75 million well costs) - excluding seismic costs(3)
• Estimated un-risked project break-even of approximately US$34 oil
• Diversified inventory of ten oil field targets / prospects supports a repeatable, scalable development model and flexible capital allocation over time, with mean targeted field sizes of 15 MMBOE per prospect with an upside case of up to 25 MMBOE from area analogs
• Horizontal drilling applications are expected to further enhance development economics, increasing recovery factors and overall project returns for a relatively small increase in per well capital costs

(1) Reference: Hydrocarbons in Hungary, 2018. Edited by Z. Kovacs. ISBN: 978-615-00-2313-8 (independent source for production data reported in the KCA region)
(2) Legacy Field Size Distribution Analysis: PMean (Swanson) field size of 15 million BOE. Revenue valuation of 567 million at $70 oil, net of royalty & tax at 46%. Base case of 1.5 MMBOE corresponds to P50. Combined with creaming curve trend over time, exploration success via application of 3D seismic is constrained to 25 MMBOE
(3) Economics based upon managements internal estimates. Breakeven and IRR based upon 330,000 bbl oil EUR, US$3.75 million average well cost to sales and royalty/tax of up to 46% with a GOR of 3,000 (scf/bbl)