Tuktu Resources Ltd. ("Tuktu" or the "Company") is pleased to announce its financial and operating results for the three and six months ended June 30, 2025, as well as an operations update. Selected financial and operating information should be read in conjunction with Tuktu's unaudited interim condensed financial statements and related management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2025, copies of which are available on the Company's SEDAR+ profile at www.sedarplus.ca.
Second Quarter 2025 Highlights
Production volumes averaged 622 boe/d (52% natural gas, 48% crude oil), an increase of 55% as compared to the second quarter of 2024.
Operating netbacks (see "Non-IFRS Measures, Non-IFRS Ratios and Capital Management Measures" below) increased to $9.66/boe from ($3.63)/boe in the same period of 2024. Tuktu's realized sales price increased to $43.09/boe, due to the oil production growth and realized crude oil price of $78.23/bbl in the quarter.
The Company's operations generated petroleum and natural gas sales of $2.4 million and adjusted funds flow used in operations (see "Non-IFRS Measures, Non-IFRS Ratios and Capital Management Measures" below) of $81 thousand in the second quarter of 2025 improving from $1.7 million in the second quarter of 2024.
Operations Update
Tuktu continues to advance its new light oil play within the upper Banff and Big Valley formations. The Company's discovery well in the Alberta Deep Basin continues to produce at about 200 bbl/d of oil and has produced approximately 97,000 bbl of oil since being placed on production one year ago. Tuktu has an 80% working interest in this well.
The offset horizontal well, drilled in the first quarter of 2025, continues to produce intermittently at lower than anticipated rates averaging 10 bbl/d of oil. The Company continues to work to enhance run time and production rates. The performance difference between these two wells, located only 315 meters apart, is interpreted to be a result of the location of fractures in the reservoir and the regional faults that cause this natural fracturing is readily visible on the Company's 2D seismic. The horizontal well provided additional valuable information in confirming the primary economic driver of the play is related to the fracture system as opposed to regional reservoir permeability and porosity.
Going forward, Tuktu plans to target such fracture systems, leveraging the expertise the management team acquired drilling analogous carbonate reservoirs in the foothills.
Tuktu's board of directors has approved an incremental capital budget of $1.0 million for the remainder of 2025, which is focused on the Company's Penny light oil asset in Southern Alberta. This capital budget includes a four well optimization program and a well recompletion targeting the Big Valley formation