Stonehorse Energy Sustains Production Growth with Drumheller Wells and A$848k Revenue

Drumheller Development Drives Production Momentum

Stonehorse Energy Limited (ASX:SHE) has continued to build on its Canadian foothold with the successful drilling and completion of three additional development wells in the Drumheller area, Alberta. The Drumheller 2, 3 & 4 wells were drilled safely, to plan, and importantly, below budget, with production sales expected to commence in late April 2026. This follows the strong performance of Drumheller #1, which has been producing above expectations since early November, averaging 128 barrels of oil equivalent (BOE) per day during the quarter and contributing 11,538 BOE (70% liquids) to total production. The company’s focus on oil-weighted opportunities in Western Canada is clearly paying off, with the Drumheller development underpinning recent growth efforts. The initial well’s outperformance was a catalyst for accelerating the drilling program, as noted in the company’s previous Drumheller #1 well performance update.

Steady Financials Backed by North American Production

Stonehorse’s Canadian and US portfolio generated revenue of A$848,000 for the quarter ending 31 March 2026, supported by higher oil prices in March that improved netbacks across both Stonehorse Canada Corporation and Lone Star Energy assets. The Canadian assets produced approximately 24,500 BOE (266 BOE per day), with the Caroline well maintaining steady output at 186 BOE per day. Meanwhile, the US portfolio contributed around 10,815 BOE net (120 BOE per day) from working interests across Oklahoma and Texas. Operating expenses remained in line with expectations, reflecting mature asset profiles and disciplined cost management. The company’s cash and cash equivalents stood at approximately A$2 million at quarter-end, down from A$4.86 million at the end of 2025, reflecting ongoing investment in development wells and operational activities. This financial snapshot aligns with Stonehorse’s steady operational progress reported in the prior quarter where cash reserves were similarly robust Stonehorse Energy Boosts Oil Output.

Australian Assets and Strategic Outlook

On the Australian front, Stonehorse holds a 25% working interest in the Myall Creek property in Queensland’s Surat Basin. However, development activities such as the Myall Creek-2 workover and Tinowon-C fracture stimulation remain contingent on a multi-well campaign, with timing yet to be determined. The company’s strategic emphasis remains on oil-weighted growth in North America, where it continues to explore opportunities within the Western Canadian Sedimentary Basin. The absence of exploration expenditure this quarter underscores a focus on development and production optimisation rather than greenfield exploration.

Capital and Corporate Governance

Stonehorse’s capital structure remains stable with 684.4 million ordinary shares on issue. The company reported payments of A$71,000 to related parties for director fees and executive salaries, consistent with prior quarters. No new equity or debt financing was raised during the quarter, although the company holds a loan facility with A$1.36 million drawn. The quarterly cash flow report highlights ongoing investment of A$4.8 million in oil and gas production and development activities, reflecting the company’s commitment to advancing its asset base.