HIGHWOOD ASSET MANAGEMENT LTD. ANNOUNCES OPERATIONAL UPDATE

/ NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRES/

CALGARY, AB, Oct. 20, 2025/ CNW/ –

Functional Update

Highwood Property Management Ltd. (” Highwood” or the “Business) finished one unbooked gross (1.0 internet) well in the 3rd quarter of 2025, being the 100/13 -15 -048 -14 W5 well ( the ” 13-15 well”) in the Basal sand at Brazeau that was spud in June. Highwood released a various conclusion technique on the 13-15 well by utilizing a jet pump to accelerate the tidy up procedure after fracture promoting the well. As an outcome of this brand-new technique, the 13-15 well tidied up around 6 weeks quicker than previous Basal sand wells in the Brazeau location. The Business was motivated by this outcome and will aim to release this strategy on future Basal sand drills in Brazeau. The 13-15 well is carrying out as anticipated and the expenses can be found in as anticipated.

In addition, Highwood drilled and finished one reserved gross (1.0 internet) well in the 3rd quarter of 2025 in Bonnyville, Alberta Early indicators recommend the well is carrying out listed below type curve. Nevertheless, the outcomes are early and independent of other horizons the Business wants to pursue within the Mannville stack. The Business continues to evaluate outcomes and identify the next actions to be taken in the Bonnyville location.

Outlook

Due to the decrease in product costs and concentrate on minimizing take advantage of to make the most of versatility, Highwood has actually lowered the 2025 capital program by around 1 gross (0.7 internet) well. The Business prepares for drilling 2 gross wells (1.8 internet) reserved places in Wilson Creek for the rest of 2025 with both wells anticipated to come online in the very first quarter of 2026. Market activity continues to increase within the Stubborn belly River at Wilson Creek with numerous active operators balancing out Highwood’s lands. Highwood’s outcomes at Wilson Creek have actually been strong and constant with typical payments of under 12 months on the 8 gross (7.7 internet) ran wells drilled to date within the Stubborn belly River. Due to the hold-up and decrease in the rest of the 2025 capital program, unintended 3rd party blackouts in the 3rd quarter of 2025, and underperformance of the Q1 2025 capital program, the Business is modifying its 2025 yearly assistance to be around 5,200-5,400 boe/d (around 70% oil and liquids).

Highwood is concentrated on minimizing Net Financial obligation/ EBITDA to increase versatility for the Business moving on.

ADVISORIES

Forward-Looking Info

Particular details included in journalism release might make up positive declarations and details (jointly, “positive declarations”) within the significance of relevant securities legislation that include understood and unidentified dangers, presumptions, unpredictabilities and other elements. Positive declarations might be determined by words like “prepares for”, “quotes”, “anticipates”, “shows”, “means”, “might”, “might” “ought to”, “would”, “strategies”, “target”, “arranged”, “jobs”, “outlook”, “proposed”, “possible”, “will”, “look for” and comparable expressions. Positive declarations in this news release consist of declarations concerning, to name a few things: prepares to continue the Business’s active capital program while product costs stay strong; Highwood’s company, technique, goals, strengths and focus; the Business’s drilling strategies and expectations; and the efficiency and other attributes of the Business’s residential or commercial properties and anticipated arise from its possessions. Such declarations show the existing views of management of the Business with regard to future occasions and go through particular dangers, unpredictabilities and presumptions that might trigger outcomes to vary materially from those revealed in the positive declarations. With regard to positive declarations included in this news release, the Business has actually made presumptions concerning, to name a few things: that product costs will follow the existing projections of its engineers; field netbacks; the precision of reserves quotes; typical production rates; expenses to drill, total and tie-in wells; supreme healing of reserves; that royalty routines will not undergo material adjustment; future exchange and rate of interest; supply of and need for products; inflation; the schedule of capital on satisfying terms; the schedule and rate of labour and products; the effect of increasing competitors; conditions in basic financial and monetary markets; that the Business will have the ability to gain access to capital, consisting of financial obligation, on appropriate terms; the invoice and timing of regulative, exchange and other needed approvals; the capability of the Business to execute its company methods and total future acquisitions; the Business’s long term company technique; and impacts of guideline by governmental companies.

Elements that might trigger real outcomes to differ from positive declarations or might impact the operations, efficiency, advancement and outcomes of the Business’s organizations consist of, to name a few things: presumptions worrying functional dependability; dangers fundamental in the Business’s future operations; the Business’s capability to produce adequate capital from operations to satisfy its future responsibilities; boosts in upkeep, running or funding expenses; the awareness of the expected advantages of future acquisitions, if any; the schedule and rate of labour, devices and products; competitive elements, consisting of competitors from 3rd parties in the locations in which the Business means to run, pricing pressures and supply and need in the oil and gas market; variations in currency and rate of interest; inflation; dangers of war, hostilities, civil insurrection, pandemics, political and financial instability overseas and its result on product prices and the oil and gas market (consisting of continuous military actions in between Russia and Ukraine and the crisis in Israel and Gaza); extreme weather and dangers connected to environment modification, such as fire, dry spell and flooding; terrorist dangers; dangers connected with innovation; modifications in laws and policies, consisting of ecological, regulative and tax laws, and the analysis of such modifications to the management group’s future company; schedule of sufficient levels of insurance coverage; trouble in getting required regulative approvals and the upkeep of such approvals; basic financial and company conditions and markets; and such other comparable dangers and unpredictabilities. The effect of any one presumption, threat, unpredictability or other element on a positive declaration can not be identified with certainty, as these are synergistic and the Business’s future strategy depends upon the evaluation of all details offered at the appropriate time. For extra threat elements connecting to Highwood, please describe the Business’s yearly details kind and management conversation and analysis for the year ended December 31, 2024, in addition to the Business’s management conversation and analysis for the duration ended March 31, 2025, which are offered on the Business’s SEDAR+ profile at www.sedarplus.ca The positive declarations included in this news release are made as of the date hereof and the celebrations do not carry out any responsibility to upgrade or modify any positive declarations or details, whether as an outcome of brand-new details, future occasions or otherwise, unless so needed by relevant securities laws.

Short-term Outcomes. Recommendations in this news release to production test rates, preliminary test production rates, 7-day preliminary production rates, 30-day preliminary production rates and other short-term production rates that work in validating the existence of hydrocarbons; nevertheless, such rates are not determinative of the rates at which such wells will start production and decrease afterwards and are not a sign of long term efficiency or of supreme healing. While motivating, readers are warned not to position dependence on such rates in determining the aggregate production for Highwood. A pressure short-term analysis or well-test analysis has actually not been performed in regard of all wells. Appropriately, the Business warns that the test results ought to be thought about to be initial.

FOFI Disclosure. This news release includes future-oriented monetary details and monetary outlook details (jointly, “ FOFI“) about Highwood’s potential outcomes of operations and production, and parts thereof, all of which go through the very same presumptions, threat elements, restrictions and credentials as stated in the above paragraphs. FOFI included in this news release was made since the date of this news release and was offered the function of supplying additional details about Highwood’s expected future company operations. The Business disclaims any objective or responsibility to upgrade or modify any FOFI included in this news release, whether as an outcome of brand-new details, future occasions or otherwise, unless needed pursuant to relevant law. Readers are warned that the FOFI included in this news release ought to not be utilized for functions besides for which it is divulged herein. All FOFI included in this news release abides by the requirements of Canadian securities legislation, consisting of Canadian Securities Administrators’ National Instrument 51-101– Standards of Disclosure for Oil and Gas Activities. Modifications in projection product costs, distinctions in the timing of capital investment and variations in typical production quotes can have a considerable influence on the essential efficiency metrics consisted of in the Business’s assistance for the complete year 2025 included in this press release. The Business’s real outcomes might vary materially from such quotes.

Currency. All quantities in this news release are specified in Canadian dollars unless otherwise defined.

Abbreviations.

www.sedarplus.ca

for the meaning of particular oil and gas terms.

Disclosure in this press release of oil and gas details exists in accordance with normally accepted market practices in Canada and National Instrument 51-101– Standards of Disclosure for Oil and Gas Activities(“ NI 51-101 “). Particularly, besides as kept in mind herein, the oil and gas details concerning the Business provided in this press release is based upon the report prepared by GLJ Ltd., independent petroleum experts of(* )Calgary

, Alberta and dated March 7, 2025 (* )assessing the light and medium petroleum, standard gas, shale gas, and gas liquids reserves attributable to Highwood’s residential or commercial properties at December 31 , 2024( the” Reserves Report“). This press release might divulge possible future drilling places in 2 classifications:( a) reserved places; and (b) unbooked places. Scheduled places are proposed drilling places determined in the Reserves Report that have actually shown and/or possible reserves, as relevant, credited to them in the Reserves Report. Unbooked places are internal quotes based upon potential acreage and a presumption regarding the variety of wells that can be drilled per area based upon market practice and internal technical analysis evaluation. Unbooked places have actually been determined by members of management. Unbooked places do not have actually shown or possible reserves credited to them in the Reserves Report. Highwood’s capability to drill and establish these places and the drilling places on which Highwood really drills wells depends upon a variety of recognized and unidentified dangers and unpredictabilities. As an outcome of these dangers and unpredictabilities, there can be no guarantee that the possible future drilling places determined in this press release will ever be drilled or if Highwood will have the ability to produce petroleum, gas and gas liquids from these or any other possible drilling places. The net present worth of future net profits attributable to reserves and resources consisted of in this press release do not represent the reasonable market price of such reserves and resources. There is no guarantee that the projection costs and expenses presumptions will be achieved, and variations might be product. The healing and reserve quotes of reserves and resources offered in this press release are approximates just and there is no warranty that the approximated reserves or resources will be recuperated. Real reserves and resources might be higher or less than the quotes offered in this press release. The quotes of reserves and future net income for specific residential or commercial properties in this press release might not show the very same self-confidence level as quotes of reserves and future net income for all residential or commercial properties, due to the impacts of aggregation. Basis of Barrels of Oil Equivalent– In this press release, the abbreviation boe suggests a barrel of oil equivalent on the basis of 1 boe to 6 Mcf of gas when transforming gas to boes. Boes might be deceptive, especially if utilized in seclusion. A boe conversion ratio of 6 Mcf to 1 boe is based upon an energy equivalency conversion technique mostly relevant at the burner suggestion and does not represent a worth equivalency at the wellhead. In addition, offered the worth ratio based upon the existing rate of petroleum as compared to gas is considerably various from the energy equivalency of 6:1, making use of a conversion ratio at 6:1 might be deceptive. Recommendations to” liquids” in this press release describe, jointly, heavy petroleum, light petroleum and medium petroleum integrated, and gas liquids. Non-GAAP and other Specified Financial Procedures This press release includes monetary procedures frequently utilized in the oil and gas market, These monetary procedures do not have any standardized significance under IFRS and for that reason might not be equivalent to comparable procedures provided by other business. Readers are warned that these non-IFRS step ought to not be interpreted as an option to other procedures of monetary efficiency determined in accordance with IFRS. These non-IFRS procedures offers extra details that Management thinks is significant in explaining the Business’s functional efficiency, liquidity and capability to money capital investment and other activities. Management thinks that the discussion of these non-IFRS procedures offer helpful details to financiers and investors as the procedures offer increased openness and the capability to much better evaluate efficiency versus previous durations on a similar basis. SOURCE Highwood Property Management Ltd.