CEO's Message

Over the past years, Forza Petroleum has successfully navigated a period of significant uncertainty in the Kurdistan regions oil and gas sector.  I am pleased to report that, in September 2025, the Iraq–Turkey pipeline was reopened following agreements between the Federal Government of Iraq, the Kurdistan Regional Government, and a consortium of international oil companies. This marks an important milestone for our business, restoring access to international export markets for crude produced from the Hawler production area and improving our realized pricing relative to local sales.

The current framework includes an interim payment mechanism, with commercial terms to be reviewed in 2026 by an independent third-party consultant.  The resulting adjustments are expected to apply on a go-forward basis and retroactively to the commencement of exports in September 2025. We received our first payments from export sales in December 2025, and subsequent liftings have continued under standard 30-day payment terms, providing increased confidence in cash flow generation and financial planning.

During the period when export access was constrained, we remained focused on preserving value. We continued production and sold into the local market, where, despite discounted pricing, advance payment terms ensured reliable cash collection and allowed us to fully cover our operating costs. This disciplined approach enabled us to maintain operational continuity and financial resilience.

At the same time, we continued to invest in the long-term strength of the business. In coordination with the Ministry of Natural Resources, we advanced development of the Hawler production area, including the installation of the South Hawler Gathering System in 2024 and the West Hawler Gather System in 2025. Together, this infrastructure allows us to transport production from satellite fields to central facilities and onward to export pipelines via flowline while at the same time reducing operating costs, enhancing safety, and lowering our environmental footprint.  In addition, the acquisition of additional 3D seismic data in 2024 supports a more detailed understanding of our reservoirs and enables more efficient deployment of future capital.

We remain closely engaged with government stakeholders and industry partners as the regulatory and commercial framework continues to evolve. With export access restored, a clear—albeit interim—payment mechanism in place, and a continued focus on disciplined investment, I believe we are well positioned to strengthen our financial performance and create long-term value.

Shane Cloninger     

Chief Executive Officer     

April 16, 2026