CanCambria Energy Corp. (TSXV: CCEC) (FSE: 4JH) (OTCQB: CCEYF) announced that technical due diligence has been completed and commercial negotiations are underway with prospective strategic partners for its Kiskunhalas deep tight gas project in southern Hungary.

The joint venture farmout process, which seeks to sell up to a 50% interest in the company's 32,604 net-acre Ba-IX Mining License, is being led by Raiffeisen Bank International AG. The process was originally announced in October 2025.

According to a company statement, the timeline has extended beyond initial expectations due to industry, macroeconomic, and domestic factors, including Hungarian parliamentary elections held April 12, 2026, and the formation of a new government on May 9, 2026.

The company said it is targeting execution of a non-binding term sheet as a basis for finalizing due diligence and negotiating transaction documentation, with a goal of closing a transaction during 2026. Subject to successful completion of the joint venture process and required approvals, CanCambria said initial drilling could begin in Q1 2027, with first gas production targeted for mid-2027.

The company cautioned that no assurance can be given that the process will result in a completed transaction, and it reserves the right to modify, suspend, or terminate the process at any time.