Director of Kelt Exploration, and I will assume the position of chair for this meeting. Before we begin the formal business of the meeting, I would like to take a moment to introduce the directors and officers of the corporation who are present today, Ray Kwan and Jennifer Haskey, and Sadiq Lalani and David Wilson. In order to ensure that the meeting covers the required business in an efficient manner, we have pre-arranged with designated shareholders or proxy holders to move and second the motions of business. The meeting will now come to order, and if there are no objections, I shall ask Louise Lee to act as secretary of the meeting and Nazim Nathoo of Odyssey Trust Company to act as scrutineer of the meeting.
The secretary has provided me with proof of mailing of the notice of meeting, instrument of proxy, management information circular, and accompanying documents of the registered shareholders and the directors of the corporation. I direct a copy of the proof of mailing, together with copies of the document mailed to shareholders to be kept by the secretary with records of this meeting. With the consent of the meeting, the reading of the notice of meeting will be dispensed with. The bylaws of the corporation state the quorum for the purpose of a meeting of shareholders is established based on two persons present and holding or representing by proxy at least 25% of the shares entitled to vote at the meeting. The scrutineer has provided me with their preliminary report regarding shareholders' attendance at the meeting.
Accordingly, I now declare that the meeting is regularly called and properly constituted for the transaction of business. During the formal portion of the meeting, only registered shareholders and duly appointed proxy holders will be able to ask questions during the question and answer portion of the meeting. These options will be made available to all attendees of the meeting. For those of us who are joining us virtually, such registered shareholders and duly appointed proxy holders are required to have logged into the meeting using their control numbers provided by Odyssey Trust in order to ask questions. There are two ways for attendees joining us virtually to ask any questions that they may have. Using the chat function for written questions, or verbally, using the device that you have used to join this meeting.
As it relates to written questions, to ask a question, select the messaging tab, type your message within the box at the top of the screen, and click the send arrow. As it relates to live audio questions, if you would like to ask a verbal question, click the Request to Speak button in the broadcast window. Please enter your full name and the topic of your question. If prompted, click Allow in the pop-up to grant access to your microphone. Click Join Queue to confirm that you are ready to join the live audio facility. Once in the queue, you will be able to listen to the live session. When it is your turn to speak, the moderator will ask you to please ask your question. You will hear a beep. After the beep, please go ahead with your question.
Please refer to the virtual meeting guide posted on the document page of the meeting platform. As this meeting is being held both in person and virtually via the webcast, we think it is necessary to set out a few rules for orderly conduct. Number one, questions will be addressed at the appropriate time during the meeting. Two, once discussion on all items of business has concluded, I will give you an additional minute to enter your votes. For the purpose of the meeting today, voting on all matters will be conducted by ballot. Registered shareholders and newly appointed proxy holders attending virtually who have properly logged in with their control numbers and wish to vote, will be able to see on the screen all motions being brought forth at this meeting.
Registered shareholders and proxy holders attending the meeting in person will have received a paper ballot upon registering with the scrutineer at the registration table. If you have already voted in advance, do not vote again online during the meeting unless you want to change your vote. If you vote again using the online ballot, your online vote during the meeting will revoke the previously submitted proxy. The first item of business is a presentation of the auditor's report and the financial statements of the corporation for the year ended December 31st, 2025. Copies of the foregoing were mailed to each registered shareholder and are available on the corporation's website and on SEDAR. It is not proposed to read the financial statements to the meeting. Receipt and presentation of the financial statements for the year ended December 31st, 2025, are hereby acknowledged.
I direct that the financial statements and the auditor's report be annexed to the minutes of the meeting. The next item of business is to fix the number of directors to be elected at the meeting at six.
I move that the Board of Directors of the Corporation shall be fixed at six members.
I second the motion.
You've heard the resolution. Are there any questions? I will now proceed with the next item of business. The next item of business is the election of the board of directors.
I nominate Jennifer Haskey, William Guinan, Ray Kwan, Neil Sinclair, Janet Vellutini, and David Wilson.
Oh.
For election as directors of the corporation to hold office for the ensuing years.
I now declare the nominations closed. Could we have a motion regarding the election of directors?
I move that each of the following nominees, Jennifer Haskey, William Guinan, Ray Kwan, Neil Sinclair, Janet Vellutini, and David Wilson, be hereby elected as a director of the corporation to hold office until the next annual meeting of shareholders or until their successor is duly elected or appointed.
I second the motion.
You've heard the resolution. I will now proceed with the next item of business. The next item of business is the appointment of auditors.
I move that PricewaterhouseCoopers LLP be and are hereby appointed as auditors of the corporation until the next annual meeting or until a successor is appointed, and that their remuneration be fixed by the board of directors.
I second the motion.
You've heard the resolutions. Are there any questions? As there are no further questions, we will proceed to provide registered shareholders and newly appointed proxy holders attending the meeting virtually approximately one more minute to complete the ballots. Registered shareholders and proxy holders attending the meeting in person who have not yet returned their completed ballots are asked to please raise their hands so the scrutineer may collect them. As a reminder, if you've already voted in advance, do not vote again unless you want to change your vote. If you vote again using the online ballot, your online vote will revoke your previously submitted proxy. We'll just wait for a minute here. Okay, I now declare the polls closed. I have been advised by the scrutineer that a sufficient number of votes were received to pass all the resolutions before us today.
That concludes the formal business brought before the meeting. As there is no further business, I declare the formal part of the meeting to be concluded. We'll now proceed to the management presentation, followed by a Q&A session. Any virtual attendees may submit questions any time during the presentation and will be answered at the appropriate time. Sadiq will kick off the presentation.
Perfect. Sadiq Lalani. Ye ah. Thanks very much. Welcome, ladies and gentlemen, those attending live and all those attending virtually as well, to the 13th annual meeting of Kelt shareholders. For those of you that are not familiar, we started the company back in February of 2013, and the company was kicked off as a spin-out of a previous company that the same management team ran for about 11 years called Celtic Exploration.
We sold that company for CAD 3.2 billion, and as part of that transaction, we spun out about CAD 140 million worth of assets, which were put into a spin co, and shareholders of Celtic received a half share in this new company, which became Kelt. The original assets were a 40% non-operated interest in a property called Inga in BC, a Montney property. We had 16 sections of Montney rights at Karr and a dry gas property at Grande Cache.
Subsequent to the start of Kelt, those initial assets that we spun out of Celtic have now been disposed, except for the Grand Cache property. The Inga property, we consolidated that to 100% in 2015 and ended up selling it to Conoco in August 2020 for CAD 0.5 billion . The Karr assets we ended up selling to Hammerhead in 2017 for CAD 100 million. The assets that we now own today are very similar to the Celtic fairway, except it's in the oilier part of the Montney fairway. Today, we have over 359,000 acres of Montney rights, and in addition to that, we have 93,000 acres of Charlie Lake rights. Inception to date, we've been able to manage a 1.7x recycle ratio on a 2P basis. The capital structure of the company is pretty simple. Common shares outstanding.
We have long-term incentive, which represent about 3.8% of the basic shares outstanding. Directors and officers do own 18% of the company, and we do have a major shareholder who also owns 22% of the company. Directors and officers of the company have participated in every single equity issue we've done since we started the company back in 2013, as you can see from this slide, and have been also quite active buying shares in the open market with investments of about CAD 150 million made over this time period. Moving on to Kelt's operations, the company set up with three main divisions. Oak/Flatrock is the B.C. division, and it is just east of the property we sold at Inga. It just lies north of Fort St. John, and it actually does sit in a separate wholly owned subsidiary company of Kelt.
The Alberta assets, which are part of the parent company, are primarily two main divisions, Pouce Coupe and Wembley/Pipestone. All of these assets are part of the main Montney Fairway, and we do have some Charlie Lake rights in the Alberta divisions as well. We came out with a CapEx budget at the beginning of the year for CAD 355 million. The interesting part of this budget is that it's highly weighted to drill and complete. Unlike previous years where we've spent quite a bit of money on infrastructure, the company is now set up with its own facilities in all of its divisions, including oil batteries, gas compression, and gathering lines. Everything except the gas plants. Except for Pouce Coupe, where we own a 20% interest in a gas plant. We use midstreamers or third parties for all of our gas plant processing.
We'll talk about that later on in the presentation in terms of how we've set ourselves up for future processing. When this budget was set, initially in January, at that time, we were forecasting WTI oil to be $59 a barrel, and we were forecasting AECO gas to be CAD 2.81 a GJ. Come March, we saw a bit of weakness in gas prices. Oil prices were looking a little bit better. We revised our commodity price forecast to $69.40 for WTI, and we dropped our AECO gas price to CAD 2.34 a GJ. Well, that momentum has continued on in both cases. Oil continues to go up and gas continues to go down. Today, WTI is trading at about $92 U.S. in the spot market, and AECO is trading below CAD 2.
We're going to go through the capital program here, but one of the things that the company management is doing right now is we are sort of reviewing some of the gassier prospects in our capital budget. We'll probably make some decisions by early May, and with the intention of maybe deferring some of our gassier prospects and drilling more of our oilier prospects, just given the economics as they are today. The original program is to drill 33.2 wells and complete 37.2 wells. In the three main areas where we're spending money, we've got this slide that shows the cost per well, the type of completion design we're using, and the production and transportation expenses as well. In Wembley/Pipestone, we've switched our completion design. We were completing wells with frack intensity of about 2.25 tons per meter . Tons per meter, sorry.
We switched that over on one of our pads last year to 2.75 tons per meter. All of the Wembley pads that we're drilling this year will have this completion design. When we did our year-end reserves at the end of 2025, we had some history on the first pad where we changed the design, but not enough history to have the independent engineers reflect this in the EURs. I think what will happen is we'll probably see a bit of an uptick in our EURs at the end of 2026, after we have more history on the original pad and some more history on these new pads we're using the same design on. We're looking forward to that. At Oak, we have lower intensity completions. Here we're using about 1.75 tons per meter of sand and water intensity at 3.5 versus four at Wembley.
Moving on to production. We set our guidance at 50,000- 52,000 BOEs a day. You can see from this product mix, we are forecasting 62% gas and 38% oil and liquids. Like I said earlier, we'll see how things go in May, but you could see this product mix change slightly if we make some adjustments to the type of wells we drill in the budget this year. As far as the gas plants I mentioned earlier, in order to produce any of your wells, regardless of whether they're gas wells or oil wells, you got to find a home for the gas. With these midstreamers that we use, we now have access to multiple gas plants in Alberta, and we do actually use just the one gas plant in BC.
With all of these midstream operators, we've arranged contracts where from last year, we had gas processing capacity of 282 million a day to this year, 322, and by 2030, 382 million cubic feet a day of raw gas processing. If you get to the 2030 numbers, that processing with the type of mix of plays that we have at Kelt, it would give you capacity to produce over 70,000 BOE a day. As you saw in the earlier slide, we're forecasting to be kind of 50,000-52,000 this year. There is room here to grow over the next few years with these contracts in place. With the reserves, despite showing a 3% increase in our 2P reserves, 448.3 million BOE, we did show a decline in NPV.
Part of the reason for that was just like we were conservative on where we thought oil prices were going to go, so were the independent engineers at the beginning of the year. Their forecast for WTI oil was pretty close to ours, around $59 a barrel in the first year. These NPVs were based on a much lower price deck than what you're seeing in the current market. As far as recycle ratios go, we've averaged, over the last three years, a 1.4x recycle ratio on our PDP reserves and a 1.5x on our 2P reserves. Without getting into a lengthy discussion about recycle ratios and costs, the issue I mentioned earlier about not having the EURs reflected at Wembley on the new completion design.
The other thing that also goes into this calculation is the gas processing contracts that we have in place limits the independent engineers in terms of how many probable reserves they can assign to the assets. Kelt actually has quite a bit more inventory than what has been assigned as probable reserves, and Dave will talk about this when we go through each of the properties separately. Using that year-end evaluation and using the average commodity price of the three evaluators, the three main evaluators, we had a net asset value per share of CAD 15.62 a share. The stock currently trades sort of in that CAD 8-CAD 8.50 range, so well below the NAV. Keep in mind, the NAV was also determined using much lower oil prices.
As you can see from this table, starting off at CAD 59.92 and then gradually moving up to CAD 70 after three years. Right now, in the spot market, WTI price of oil is over CAD 92 a barrel. That would imply a much higher NAV per share at current pricing. To summarize on commodities, here's a little bit more detail on each of the products. Probably the more meaningful numbers are at the bottom of the slide. The net realized oil price that Kelt was assuming this year is CAD 86 a barrel. For NGLs, CAD 37 a barrel, and for gas, CAD 3.29. The CAD 3.29 gas price reflects our mix of gas marketing. We sell our gas to a bunch of different hubs. We have gas going to Dawn, Chicago. We have gas in the local markets at AECO Station 2.
We've also done some financial transactions to convert some of our gas from AECO pricing to LNG pricing, JKM TTF pricing, and also electricity pricing, where right now we're fetching a significant premium to spot AECO prices. With that commodity price deck, we're looking to have a field netback of about CAD 21.89/BOE this year and adjusted funds from operations of just over CAD 20/BOE. That's a 14% increase from last year, not taking into account even the further increase in pricing we're seeing in the spot market now. Just a summary on finances. We're looking at a forecast of CAD 722 million of revenue for the year, up 41% from last year. Adjusted funds from operations of CAD 375 million, which would be up 43% from last year, which equates to CAD 1.83 per share.
A CapEx budget that's just slightly over last year, 8% over last year at CAD 355 million. Leaving the company in a fairly strong position financially with debt at the end of the year at half a year's cash flow. If I could just call Dave Wilson back and maybe walk through the rest of the presentation here.
Thanks, Sadiq. Yeah. Like Sadiq said, we're working in three different divisions here. Fairly active in all three. The gassier stuff, like Sadiq said, we'll look at, and that might mean we change some of our drilling plans in BC. We're predominantly a Montney company with some Charlie Lake on the side there. We'll kick right into here. The reason we're enamored with Montney and the whole industry is just due to the fact that you're able to drill in up to four or five different units in the Montney, and that makes your land quite valuable and makes your whole development program very efficient because you're able to drill so many wells from a single pad. In Oak, we're only drilling two of these units, but in Pouce Coupe and Wembley, we're drilling up to four different units in the Montney.
The one thing that across most of these lands, we're typically just a little bit over-pressured, which is normal for the Montney. Like Sadiq said, the difference this time around from Celtic is we've kind of moved north, northeast into the more oilier section. Starting in BC, at Oak, this is our biggest land holding, around 300 sections. We have planned to drill 10 wells here. We had two DUCs that we didn't get completed last year, so we're planning to complete 12 wells here this year. As we've mentioned, this is one area that we might push off with gas prices where they are and drill some oilier wells. We've kind of been doing that for the last couple of years, just waiting for LNG to come on and it looks like we might have to wait until next winter to see some decent gas prices here.
This is an area that you might see us push gas wells into next year. We've got a six-well pad left to drill here, and we're actually just going to move on to the previous pad and complete those six wells early in May. Jumping over to Alberta. This is a slide of both our Pouce Coupe and Wembley Montney, and probably everything in this area, with the exception of the Pouce Coupe West block, is all fairly oily Montney. The Pouce Coupe West block is in more of a dry gas type scenario. At Pouce Coupe, the Montney here, it looks like it's kind of spread out a bit, but when I show you in the next slide on the Charlie Lake, you'll see how it kind of lays over and makes things much more contiguous.
Just speaking to the type of Montney wells that we're drilling out here, like I say, everything as you go north and east, it gets oilier. The Pouce Coupe West property that I just previously mentioned, what I'd like to point out here is, it's six sections, so you think, well, that's not much land. Just to my point about being able to drill it in different units, we'll end up drilling about 35-40 wells in that little six-section block there. It kind of speaks to the amount of wells you can actually get into these Montney plays. Right now, we've got three Montney wells. Actually, we've drilled two Montney wells, and they're on production. They're in that dry gas block. We're drilling another three Montney wells right now and a halfway well here. Those wells should be completed.
Those three wells will be completed here in about two months. Here's the Charlie Lake. Like I said, when you layer this over top of your Montney land, you get a pretty contiguous chunk of land. What makes that important is it makes it quite efficient because you can use all the same infrastructure, pipelines, and plants and, you can drill from the same pads for Montney and Charlie Lake here. Quite an efficient way to develop this. Now, the Charlie Lake out here is very oily for the most part. We only have two wells planned here this year. This is an area that, if we do postpone some of these gas wells, this is an area that you'll see us pick up more Charlie Lake wells and drill, as opposed to drilling the gas wells in Oak. Jumping down to Wembley.
Wembley is our biggest contiguous Montney block in Alberta. We've done a pretty good job of going in and delineating it. It's hard to see the old wells, the delineation wells, because it's pretty lightly colored there. We've pretty much drilled wells throughout the whole block. That's allowed us to go in and figure out what we needed for infrastructure to do a full development. We've put in big diameter pipe here and put in the necessary oil batteries and compression facilities to do a full development on this over the next 10 years. The heavy lifting's been done and the expensive part of the facilities are already in place here. What we've got planned this year in Wembley is, it's quite an oily development. We're drilling 16 wells, and we drilled one DUC that we brought into this year.
They're all kind of in the real oily portion of the play, so should have some pretty good oil volumes coming on here. We've completed a couple of pads. They'll come on over the next month or so, and just going to complete the third pad here in May. I was talking a bit about infrastructure. What's nice about Wembley is we've got five different gas plants that we go to. What the significance of that is, if one of your plants goes down, you've got the ability to direct gas to the other plants and keep your production on stream. Actually, while we're on the facility side, the CSV plant that we had issues with last year that took a little longer than we were hoping to come on stream. It's actually a sulfur recovery plant.
The significance of that is sulfur has went from CAD 100 netback to upwards of CAD 600, even CAD 700 netback per ton here in April and going into May. In this area, once we get these next three pads on, we should be doing about 100 tons of sulfur out here. At that price, it's a pretty significant byproduct that you used to have to pay to get rid of. It should definitely help the cash flow. That pretty much sums things up. We've always said that we wanted to sell something at some point. We still have that in our plans. Oil's kind of come onside there, pricing-wise. We'd like to see gas do the same before we looked at doing some sort of a divestiture.
At some point, we'd like to bring some of that PV forward and be able to give that back to the shareholders. I think we'll just open it up to questions. I'm not exactly sure how that's going to work.
Nothing written so far, and I'll let you know if there's anybody.
No questions from the audience here. Okay, well, I guess that sums it up. Thanks for coming out there, folks, and we'll see you next year.