CanCambria Energy Achieves Significant Milestones in Kiskunhalas Joint Venture Process, Paving Way for Tight Gas Development in Europe

CanCambria Energy Corp., a Canadian-based exploration and production company, has announced substantial progress in its joint venture (JV) process for the Kiskunhalas deep tight gas project in southern Hungary. The project, which spans 32,604 net acres, has garnered significant interest from prospective strategic partners, with technical due diligence now complete and commercial negotiations underway.

The JV process, led by Raiffeisen Bank International AG, has extended beyond initial expectations due to various industry, macroeconomic, and domestic factors, including the recent Hungarian parliamentary elections and the subsequent installation of a new government. Despite these delays, CanCambria remains committed to advancing the JV process, with the ultimate goal of executing a formal non-binding term sheet and finalizing due diligence.

The Kiskunhalas project is considered one of the most significant undeveloped tight gas opportunities onshore Europe, with CanCambria's President and Chief Executive Officer, Dr. Paul Clarke, highlighting the project's vast potential. The company's expectation for first gas production remains unchanged, with production targeted for mid-2027, subject to the successful completion of the JV process and the satisfaction of all required conditions and approvals.

The completion of technical assessment and the advancement to commercial negotiations represent crucial milestones in unlocking the value of the Kiskunhalas Project. CanCambria is increasingly focused on converting the strong industry interest into a strategic partnership that accelerates development while maximizing value for shareholders. With initial drilling activities anticipated to commence in Q1 2027, the company is poised to make significant strides in the development of this promising project.

CanCambria Energy Corp. is well-positioned to capitalize on the growing demand for natural gas in Europe, with its globally experienced leadership team and focus on high-quality, de-risked projects. The company's commitment to advancing the JV process and its dedication to providing updates as further information becomes available demonstrate its transparency and accountability to stakeholders.

The JV process is subject to various conditions, including the negotiation and execution of definitive agreements, customary regulatory approvals, and the satisfaction of other commercial conditions. While there can be no assurance that the JV process will result in a transaction closing, the meaningful progress made to date is a positive indication of the project's potential. As the energy landscape continues to evolve, CanCambria Energy Corp. is poised to play a significant role in the development of tight gas resources in Europe.