Stonehorse Faces Governance Shift as Director Resigns During Growth Phase

Steady Operational Performance

Stonehorse Energy Limited (ASX, SHE) has delivered a solid operational quarter ending 30 September 2025, underpinned by above-forecast production from its Canadian assets. The company’s consolidated revenue from its Canadian and US oil and gas wells reached A$682,000, reflecting a consistent contribution from its mature US portfolio and a growing Canadian footprint.

Production volumes for the quarter stood at approximately 21,804 barrels of oil equivalent (BOE) in Canada and 14,722 BOE net in the United States, demonstrating the company’s ability to maintain steady output despite some operational downtime at the Caroline Hz 103 well in Alberta.

Strategic Focus on Canadian Growth

Stonehorse’s strategic emphasis on expanding its Canadian operations is evident in its business development activities across the Western Canadian Sedimentary Basin. The company is actively pursuing new wellbore opportunities, including a recently announced farm-in agreement to participate in drilling a light oil well in the Drumheller Area near Calgary, Alberta. This investment, valued at approximately C$1.15 million for a 20% working interest, signals Stonehorse’s commitment to capitalising on high liquids ratio prospects in a challenging price environment.

The drilling campaign, which commenced in the December 2025 quarter, is planned to reach a measured depth of 4.9 kilometres with a lateral section of 3.4 kilometres, leveraging existing infrastructure to expedite production and sales post-completion.

Financial Position and Cost Management

Stonehorse closed the quarter with cash and cash equivalents of approximately A$6.3 million, maintaining a healthy liquidity position to support ongoing operations and development activities. Operating expenses in Canada aligned with increased business development efforts, while US costs remained moderate, consistent with a mature asset base. Meanwhile, the company is actively reducing corporate overheads in Australia to focus resources on its North American growth strategy.

Governance and Leadership Update

The quarter also saw a notable governance change with the resignation of director David Deloub. Executive Chairman Rob Gardener has assumed day-to-day operational management responsibilities, supported by the remaining board members. This leadership consolidation may streamline decision-making as Stonehorse navigates its growth phase.

Outlook

With a clear focus on expanding its Canadian portfolio through targeted drilling and well participation, Stonehorse Energy appears positioned to build on its steady production base. The company’s disciplined capital deployment and operational execution will be critical as it seeks to enhance shareholder value amid ongoing market challenges.