CanCambria Energy Corp. ("CanCambria" or the "Company") is pleased to announce that the Hungarian authority responsible for hydrocarbon exploration activities has approved the Company's technical operating plan for the Kiskunhalas Concession Area ("KCA" or the "Project"), setting forth the commitment and schedule of development activities for the next four years (the "Technical Operating Plan").
"Securing approval of our Technical Operating Plan is an important step in unlocking the strategic value of the KCA," said Paul Clarke, President and CEO. "Given the supply-side concerns and associated commodity prices for natural gas in Europe, we believe this Project represents a meaningful opportunity within the onshore European energy landscape. Furthermore, energy markets are reacting quickly to disruptions in global LNG supply, with European natural gas prices rising significantly in recent days. While the broader geopolitical situation continues to evolve, the underlying takeaway is that Europe continues to place significant value on stable, regional sources of natural gas. Our Project in Hungary is located in a highly strategic part of Central Europe, near established gas infrastructure servicing major European markets. The contiguous size, 100% working interest, favorable tax landscape, and proximity to established infrastructure make the KCA a compelling investment opportunity."
In accordance with the approved Technical Operating Plan, throughout the remainder of 2026, the Company will conduct detailed geological, geophysical, and engineering studies utilizing legacy 2D and 3D seismic data, calibrated against CanCambria's proprietary 3D seismic dataset acquired in 2023 over its adjacent BA-IX mining plot. These studies will also integrate production and well data from more than 300 legacy oil and gas wells in the region.
Pursuant to the approved Technical Operating Plan, the Company will undertake a 3D seismic acquisition program no later than year-end 2027, with a two-well drilling commitment to follow by year-end 2029. The KCA covers approximately 945 km2 and was awarded to the Company in Q1 2025 via a competitive tender process.
The KCA provides the Company with a 100% working interest across all depths and includes both conventional and unconventional resource potential. Upon successful completion of the prescribed work commitment, the KCA will automatically transition to a production license with a 20-year term. The Company reserves the right to, at any point, accelerate the above work program as a function of investment levels and other market and/or commodity pricing considerations.
About the Kiskunhalas Concession Area
The KCA is a strategically located, large-scale asset situated in southern Hungary, within the prolific Pannonian Basin, a region with a long history of conventional hydrocarbon production. At over 230,000 acres, the KCA covers a significant contiguous land position, overlying multiple stacked reservoir targets, characterized by prolific conventional pay, low-permeability sandstone formations, and naturally fractured basement requiring advanced drilling and completions technologies.
The KCA benefits from existing regional infrastructure, including proximity to processing facilities and pipeline networks tied into domestic European gas markets, enhancing future commercialization pathways and lowering potential development lead times. Hungary's supportive regulatory framework and strategic importance within the European energy supply chain further position the concession as a potentially valuable long-term gas resource.
The Company's work to date has focused on the southern portion of the KCA, namely an extension of the Kiskunhalas Trough, where access to legacy seismic datasets provides a strong technical foundation for the extension of the unconventional tight gas accumulation discovered on the Company's BA-IX mining plot. The Company published its estimates of contingent resources in accordance with the requirements of National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities, effective September 30, 2025; details can be downloaded from SEDAR+ (www.sedarplus.ca).