Stonehorse Energy Ltd (ASX:SHE) Stock Moves Higher: What Is Driving the Price?

Sonal Goyal

21 October 2026 12:46 PM AEDT

Stonehorse Energy Ltd (ASX:SHE) Stock Moves Higher: What Is Driving the Price?

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Key Highlights

Stonehorse Energy Ltd (ASX:SHE) shares closed at $0.013 on 21 October 2026, up 8.33%.
A 14 September 2026 update reported Drumheller wells #5 and #6 adding 262 BOEPD, 65% oil weighted.
Total production in the Drumheller area exceeds 500 BOEPD and is over 55% oil weighted.

Stonehorse Energy Limited (ASX:SHE) shares rose 8.33% to close at $0.013 during the trading session on 21 October 2026, while the S&P/ASX 200 (XJO) stood at 8,809.20, down 7.70 points or 0.087%. Stonehorse is a Perth-based exploration and production company with onshore oil and gas interests in Canada and the United States.

What Stonehorse Energy does

Stonehorse Energy is an Australian-based exploration and production company focused on onshore oil and gas in Canada and the United States. Its stated objective is to build a portfolio of well bore assets with working interest percentages that reflect its risk appetite and available capital.

The company has 684.4 million ordinary shares on issue. Its Canadian business, Stonehorse Canada Corporation (SCC), participates in development activity in the Drumheller area of Alberta.

Drumheller wells update

Separately from the day’s trading, Stonehorse’s announcement dated 14 September 2026 is outlined below. The company said SCC continues to increase development activity in the Drumheller area. New development wells #5 and #6 were completed and brought online in August. Wells #7 and #8 have also been completed, tied into facilities and brought online, and are cleaning up, with a stabilised flow rate expected by mid-September.

The latest combined production rate for wells #5 and #6 adds 262 barrels of oil equivalent per day (BOEPD) to the Canadian business, 65% oil weighted. The announcement includes a chart of net SCC production from Drumheller wells #5 and #6 against a type curve, with a 66% liquids share noted.

Production and development plans

Total production to date for SCC in the Drumheller area exceeds 500 BOEPD and is more than 55% oil weighted. Stonehorse said it is planning to participate in additional development wells before the end of 2026, based on current market conditions and drilling success to date.

Looking to 2027 and beyond, the company stated that its partner has more than 75 potential new well locations in the Drumheller region and is preparing for additional drilling. The company noted that the new joint wells add production and increase oil weighting and netbacks.

Information not included in the update

The announcement does not state the flow rates for wells #7 and #8, which were still cleaning up, or the capital cost of the wells, netback figures, Stonehorse’s working interest percentages in the Drumheller wells or financial results. The chart in the release compares actual net production from wells #5 and #6 with a type curve, and the company’s production figures relate to its Canadian business.

Strategy and disclosures

Stonehorse describes its strategy as building a portfolio of high-quality well bore assets with working interest percentages that reflect risk appetite and capital availability. The announcement carries forward-looking statement and disclaimer notices, which list commodity prices, currency fluctuations, economic and financial market conditions, environmental risks, regulatory developments, political risks and project delay as factors that could cause actual results to differ materially.

Sector context

Oil-weighted production generally earns higher revenue per barrel of oil equivalent than gas-weighted production, which is why the company highlights its oil weighting and netbacks. Small producers in Alberta typically participate in development wells alongside operators, and results depend on well performance, commodity prices, operating costs and the Canadian dollar exchange rate. Production rates in the early life of a well are usually higher and decline over time, which is why companies compare actual output with a type curve.

Risks and uncertainties

The reported rates are initial production rates from new wells and may decline. Stonehorse’s plans to participate in additional wells depend on market conditions, funding and the operator’s drilling schedule, and the partner’s 75 potential locations are not committed wells. Oil and gas prices, currency movements, regulatory and environmental factors and operational risks can affect results. The announcement is dated 14 September 2026 and does not include financial results. With a share price of $0.013, the shares can move sharply.

What’s next

Stonehorse said it is planning to participate in additional development wells before the end of 2026, while its partner prepares for further drilling in the Drumheller region in 2027 and beyond. Wells #7 and #8 were expected to reach a stabilised flow rate by mid-September, and the company is expected to provide further updates as production data is received.

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