Kelt Exploration (TSX:KEL) Provides Update on Albright Gas Plant Start-Up Timeline

3 min read | August 25, 2025 04:32 AM EDT | By Sonal Goyal

Kelt Exploration (TSX:KEL) Provides Update on Albright Gas Plant Start-Up Timeline — Image source: © 2025 Krish Capital Pty. Ltd.

Albright Gas Plant Commissioning Update

Albright was initially scheduled to begin operations in the fourth quarter of 2024. Following construction-related challenges and logistical delays, CSV commenced commissioning activities in June 2025. These activities included flaring, testing, and safety checks, with the goal of moving to full-scale operations in July 2025.

CSV confirmed that the upstream portion of the plant is fully commissioned and ready for start-up. However, the sulphur recovery plant—required for processing sour gas—has experienced recurring technical issues. Specifically, a critical four-way valve has failed to perform as intended during testing, despite functioning in earlier stages. CSV is conducting a root cause analysis (RCA) to determine the reasons for the malfunction. At this stage, CSV is unable to provide Kelt with a revised start date for Albright’s commencement of operations.

Impact on Kelt’s Production

The Company has significant production currently shut-in as it awaits the facility’s start-up. Kelt has contracted for 50 MMcf per day of Albright’s total gas processing capacity of 150 MMcf per day. According to the Company, each week of delay reduces its 2025 average daily production by approximately 175 barrels of oil equivalent (BOE) per day.

Kelt’s current forecast sets the lower end of its average daily production guidance at 42,000 BOE per day for 2025. The Company expects CSV to deliver RCA results in early September 2025, after which Kelt will evaluate whether adjustments to its production guidance are required.

Wembley/Pipestone Division Outlook

During the seven months ended July 31, 2025, average production from Kelt’s Wembley/Pipestone division was approximately 14,300 BOE per day, comprised of 55% oil and natural gas liquids (NGLs) and 45% gas. The start-up of the Albright facility is expected to materially increase production levels in this region. With Albright operational, Kelt anticipates its Wembley/Pipestone production to rise to approximately 23,000 to 24,000 BOE per day.

The Company emphasized that timely resolution of the commissioning challenges at Albright is essential for achieving its planned production ramp-up.

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