en.Wedoany.com Reported - Journey Energy Inc. has announced the expansion of its 2026 capital plan, now expecting to participate in the drilling of 16 gross wells (4.2 net wells) and related infrastructure construction, with 2026 capital expenditures raised to C$100 million, focusing on advancing the development of the Duvernay light oil resource play in Alberta, Canada.
Under the updated plan, Journey expands on the Duvernay capital expenditure base of C$60-75 million mentioned on May 8, 2026. The base plan originally included drilling 8.0 gross wells (2.4 net wells) and completing 9.0 gross wells (2.7 net wells). The expanded plan adds 4.0 gross wells (1.2 net wells) from the existing drilling pad 2-22-42-5W5 and certain joint venture (JV) well locations. The total net wells in 2026 represent a 100% increase over 2025 levels. Along with the expanded drilling program, facility capital for gathering system expansion has increased from C$15 million to C$20 million net, including a 30 mmscf/d compressor station and related pipelines. All new wells are expected to come on production between June and December 2026.
In terms of portfolio adjustments, Journey has completed the sale of its Countess assets to a private company for total cash consideration of C$7 million. The assets closed on June 1, 2026, producing approximately 950 barrels of oil equivalent per day (100% natural gas), involving 425 natural gas wells and a 4 MW power generation facility, with an associated abandonment cost of approximately C$20 million. Proceeds from the sale will be dedicated exclusively to Duvernay development. Meanwhile, Journey's power business has made progress, with the Gilby power project now operational. Fortis has completed all inspections, and the company is awaiting Fortis to sign the final interconnection agreement in the last week of June to begin selling electricity to the grid in July. The Mazeppa power project has entered AESO-approved Stage 5, the final construction phase. Based on models from independent reserve evaluator GLJ Petroleum Consultants Ltd. using the average of forecast prices published by three advisors (GLJ Petroleum Consultants Ltd., Sproule Associates Ltd., and McDaniel & Associates Ltd. as of December 31, 2025), the pre-tax net present value (NPV@10%) of Journey's two power projects is approximately C$69 million.
Based on the expanded capital plan and the impact of asset dispositions, Journey has updated its 2026 performance guidance. The company's average annual daily sales are expected to be 10,300 to 10,700 barrels of oil equivalent (65% crude oil and NGL), with exit daily sales expected to be 11,400 to 11,800 barrels of oil equivalent (70% crude oil and NGL). Total 2026 capital expenditures are set at C$100 million, with asset retirement expenditures of C$7 million.
Journey is a Canadian exploration and production company focused on Alberta, with a strategic core of expanding its production base through drilling, secondary and tertiary recovery projects, and value-added acquisitions, and since 2024, shifting focus to the development of the unconventional Duvernay light oil resource play.
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