Tamarack Closes Previously Announced Anegada Oil Corp. Acquisition

Source: www.gulfoilandgas.com 6/1/2021, Location: North America

Tamarack Valley Energy Ltd. has successfully closed the previously announced acquisition (the "Acquisition") of Anegada Oil Corp. ("Anegada"). Tamarack acquired all of the issued and outstanding common shares of Anegada for total net consideration of 105.3 million common shares of Tamarack and $247.5 million in cash and assumed net debt(1), after deducting the proceeds from the closing of the previously announced 2% gross overriding royalty (the "GORR"). In conjunction with the acquisition, Tamarack's credit syndicate has increased the Company's credit facilities to $600 million and extended the revolving period to May 31, 2022.

Charlie Lake Update
Current production from the newly acquired assets is approximately 12,500 boe/d(2). The Company forecasts a range of 12,000 to 13,000 boe/d(3) for the second half of 2021, maintaining that level of production on a go forward basis. Tamarack plans to run two rigs in the play during the month of June, with plans to drill 12 (12.0 net) wells for the remainder of the year, with seven (7.0 net) in the Pipestone area, two (2.0 net) in Wembley, two (2.0 net) in Saddle Hills and one (1.0 net) in Valhalla. Approximately two-thirds of the wells planned are three-mile horizontals with the remainder being two-mile horizontals. Tamarack's total budget for 2021 is expected to be approximately $180 million.

Tamarack has proactively enhanced the inventory of future drilling locations and Charlie Lake acreage by an incremental 33 (32.7 net) locations and greater than 18,000 additional acres of land, through strategic tuck-in activity in the greater Charlie Lake fairway since the initial announcement of the Acquisition. Tamarack's highly economic Charlie Lake inventory represents >257 (240.0 net) locations and over 10 years of planned drilling inventory in the play. The Charlie Lake light oil inventory has very robust economics consisting of: high productivity wells (IP30 rates of >650 boe/d(4)); payouts of less than 6 months; profit to investment ratios(1) (10% discount) of >1.7; and long-term net asset value growth (NPV10 per well greater than $5 million) at US $55/bbl WTI and $2.50/GJ AECO.

Anegada brought on-stream another notable well in late March (3-16-071-8W6), which produced an average of 919 bbls/d of oil for the calendar month of April. Two other notable wells in the Pipestone area that were brought on-stream in February (2-22 & 3-22-071-08W6) were down for approximately half of the month in April due to a battery fire. All of these wells are three-mile horizontals.


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