TSX:
TVE
CALGARY, AB, Feb. 15, 2022 /CNW/ - Tamarack Valley Energy Ltd.
("Tamarack" or the "Company") (TSX: TVE) is pleased
to announce that it has successfully closed the previously
announced acquisition (the "Acquisition") of Crestwynd
Exploration Ltd. ("Crestwynd"), a privately held pure play
Clearwater oil producer. Tamarack
acquired all of the issued and outstanding common shares of
Crestwynd for total net consideration of 26.3 million common shares
of Tamarack and $92 million in cash.
Cash consideration for the transaction was funded through the
recently completed offering of sustainability-linked notes.
Tamarack is now the largest operator in the Southern Clearwater as a result of the
Acquisition. The acquired assets are forecasted to produce ~4,500
boe/d(1) and deliver ~$130
million of operating field netback(2),(3) in
2022. As part of the new asset development plan, Tamarack allocated
funds in the 2022 capital program for the initiation of a
Southern Clearwater gas
conservation project to further the Company's ongoing commitment to
greenhouse gas management and emissions intensity reductions.
About Tamarack Valley Energy Ltd.
Tamarack is an oil and gas exploration and production company
committed to creating long-term value for its shareholders through
sustainable free funds flow generation, financial stability and the
return of capital. The Company has an extensive inventory of
low-risk, oil development drilling locations focused primarily on
Charlie Lake, Clearwater and EOR plays in Alberta. Operating as a responsible corporate
citizen is a key focus to ensure we deliver on our environmental,
social and governance (ESG) commitments and goals. For more
information, please visit the Company's website at
www.tamarackvalley.ca.
Abbreviations
bbls/d
|
barrels per
day
|
boe
|
barrels of oil
equivalent
|
boe/d
|
barrels of oil
equivalent per day
|
IFRS
|
International
Financial Reporting Standards as issued by the International
Accounting Standards Board
|
WCS
|
Western Canadian
Select, the benchmark for conventional heavy and oil sands blended
crude oil in western Canada
|
WTI
|
West Texas
Intermediate, the reference price paid in U.S. dollars at Cushing,
Oklahoma for the crude oil standard grade
|
READER ADVISORIES
Notes to Press Release
(1) Comprised of ~4,500 bbl/d heavy oil
(2) See "Non-IFRS Measures"
(3) Operating field netback based on 2022
average pricing assumptions, as at February
4, 2022, of $85.79 WTI
(USD/bbl); $13.38 WCS differential
(USD/bbl); and $1.2738 CAD/USD
FX.
Forward Looking Information
This press release contains certain forward-looking information
(collectively referred to herein as "forward-looking statements")
within the meaning of applicable Canadian securities laws.
Forward-looking statements are often, but not always, identified by
the use of words such as "guidance", "outlook", "anticipate",
"target", "plan", "continue", "intend", "consider", "estimate",
"expect", "may", "will", "should", "could" or similar words
suggesting future outcomes. More particularly, this press release
contains statements concerning: Tamarack's business strategy,
objectives, strength and focus; the anticipated benefits of the
Acquisition, including the impact of the Acquisition on the
Company's operations, opportunities, financial condition, access to
capital and overall strategy; expectations with respect to oil and
natural gas production and operating field netbacks in 2022 in
respect of the assets (the "Assets") acquired pursuant to the
Acquisition; development and drilling plans for the Assets; and
Tamarack's commitment to ESG principles and the impact of the
Acquisition thereon, including the initiation of a Southern Clearwater gas conservation
project.
The forward-looking statements contained in this document are
based on certain key expectations and assumptions made by Tamarack,
including relating to: the business plan of Tamarack pro forma the
completion of the Acquisition; the timing of and success of
future drilling, development and completion activities; the
geological characteristics of Tamarack's properties; the
characteristics of the Assets; the successful integration of the
Assets into Tamarack's operations; prevailing commodity prices,
price volatility, price differentials and the actual prices
received for the Company's products; the availability and
performance of drilling rigs, facilities, pipelines and other
oilfield services; the timing of past operations and activities in
the planned areas of focus; the drilling, completion and tie-in of
wells being completed as planned; the performance of new and
existing wells; the application of existing drilling and fracturing
techniques; prevailing weather and break-up conditions; royalty
regimes and exchange rates; impact of inflation on costs; the
application of regulatory and licensing requirements; the continued
availability of capital and skilled personnel; the ability to
maintain or grow the banking facilities; the accuracy of Tamarack's
geological interpretation of its drilling and land opportunities,
including the ability of seismic activity to enhance such
interpretation; and Tamarack's ability to execute its plans and
strategies.
Although management considers these assumptions to be reasonable
based on information currently available, undue reliance should not
be placed on the forward-looking statements because Tamarack can
give no assurances that they may prove to be correct. By their very
nature, forward-looking statements are subject to certain risks and
uncertainties (both general and specific) that could cause actual
events or outcomes to differ materially from those anticipated or
implied by such forward-looking statements. These risks and
uncertainties include, but are not limited to: unforeseen
difficulties in integrating the Assets into Tamarack's operations;
incorrect assessments of the value of benefits to be obtained from
acquisitions and exploration and development programs (including
the Acquisition); risks associated with the oil and gas industry in
general (e.g. operational risks in development, exploration and
production; and delays or changes in plans with respect to
exploration or development projects or capital expenditures);
commodity prices; increased operating and capital costs due to
inflationary pressures; the uncertainty of estimates and
projections relating to production, cash generation, costs and
expenses; health, safety, litigation and environmental risks;
access to capital; and the COVID-19 pandemic. Due to the nature of
the oil and natural gas industry, drilling plans and operational
activities may be delayed or modified to react to market
conditions, results of past operations, regulatory approvals or
availability of services causing results to be delayed. Please
refer to the annual information form for the year ended
December 31, 2020, the management's
discussion and analysis for the three and nine months ended
September 30, 2021 and other
continuous disclosure documents for additional risk factors
relating to Tamarack, which can be accessed either on Tamarack's
website at www.tamarackvalley.ca or under the Company's profile on
www.sedar.com. The forward-looking statements contained in this
press release are made as of the date hereof and the Company does
not undertake any obligation to update publicly or to revise any of
the included forward-looking statements, except as required by
applicable law. The forward-looking statements contained herein are
expressly qualified by this cautionary statement.
This press release contains future-oriented financial
information and financial outlook information (collectively,
"FOFI") about Tamarack's prospective results of operations and
production and operating field netback and components thereof,
including pro forma the completion of the Acquisition, all of which
are subject to the same assumptions, risk factors, limitations, and
qualifications as set forth in the above paragraphs. FOFI contained
in this document was approved by management as of the date of this
document and was provided for the purpose of providing further
information about Tamarack's future business operations. Tamarack
and its management believe that FOFI has been prepared on a
reasonable basis, reflecting management's best estimates and
judgments, and represent, to the best of management's knowledge and
opinion, the Company's expected course of action. However, because
this information is highly subjective, it should not be relied on
as necessarily indicative of future results. Tamarack disclaims any
intention or obligation to update or revise any FOFI contained in
this document, whether as a result of new information, future
events or otherwise, unless required pursuant to applicable law.
Readers are cautioned that the FOFI contained in this document
should not be used for purposes other than for which it is
disclosed herein.
Non-IFRS Measures
Certain measures commonly used in the oil and natural gas
industry referred to herein, including, "operating field netback"
do not have a standardized meaning prescribed by IFRS and therefore
may not be comparable with the calculation of similar measures by
other companies. These non-IFRS measures are further described and
defined below. Such non-IFRS measures are not intended to represent
operating profits nor should they be viewed as an alternative to
cash flow provided by operating activities, net earnings or other
measures of financial performance calculated in accordance with
IFRS.
"Operating Field Netback" equals total petroleum and
natural gas sales, less royalties and net production and
transportation expenses.
SOURCE Tamarack Valley Energy