CALGARY,
AB, Jan. 14, 2025 /CNW/ - Tamarack Valley
Energy Ltd. ("Tamarack" or the "Company") (TSX: TVE)
is pleased to announce the declaration of its monthly dividend and
renewal of its normal course issuer bid ("NCIB").
Dividend Declaration
Tamarack's Board of Directors has declared a monthly cash
dividend on its common shares ("Common Shares") of
C$0.01275 per share in accordance
with the Company's dividend policy. The dividend will be payable on
February 14, 2025, to shareholders of
record at the close of business on January
31, 2025. This monthly cash dividend is designated as an
"eligible dividend" for Canadian income tax purposes.
NCIB Renewal
The Toronto Stock Exchange (the "TSX") has approved
Tamarack's application to renew its NCIB.
The Company had 523,051,704 Common Shares issued and outstanding
as at January 6, 2025. The NCIB
allows Tamarack to purchase up to 51,279,652 Common Shares of the
Company (representing approximately 10% of the 512,796,526 issued
and outstanding Common Shares that comprise the public float as of
January 6, 2025) over a period of
twelve months commencing on January 19,
2025. The NCIB will expire no later than January 18, 2026. The actual number of Common
Shares which may be purchased pursuant to the NCIB will be
determined by management of the Company. Any Common Shares that are
purchased by Tamarack under the NCIB will be cancelled.
Under the NCIB, Common Shares may be repurchased in open market
transactions on the TSX or alternative Canadian trading system in
accordance with the rules of the TSX governing NCIBs. The price
paid by the Company for any such common shares will be the
prevailing market price at the time of purchase.
The total number of Common Shares the Company is permitted to
reacquire is subject to a daily purchase limit of 663,380 Common
Shares, representing 25% of the average daily trading volume of
2,653,522 Common Shares on the TSX calculated for the six-month
period ended December 31, 2024.
Notwithstanding the daily purchase limit, Tamarack may make one
block purchase per calendar week which exceeds the daily repurchase
restrictions.
The NCIB will continue to provide an additional tool for the
reinvestment of excess free funds flow to increase long-term total
shareholder returns. Tamarack believes that at times, the
prevailing share price does not reflect the underlying value of the
common shares and the repurchase of common shares represents an
opportunity to enhance per share metrics. Tamarack remains focused
on balancing debt repayment and delivering enhanced returns to
shareholders.
Under its expiring NCIB, the Company was permitted to purchase
up to 54,649,379 Common Shares between January 19, 2024, and January 18, 2025. As at January 6, 2025, Tamarack had repurchased an
aggregate of 33,888,960 Common Shares under the expiring NCIB
through the TSX and alternative Canadian Trading systems at a
volume weighted average price of approximately $3.90 per Common Share.
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
Clearwater and Charlie Lake plays in Alberta while also pursuing EOR upside in
these core areas. For more information, please visit the Company's
website at www.tamarackvalley.ca.
Reader Advisories
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 forward-looking statements concerning: Tamarack's business
strategy, objectives, strength and focus; the future declaration
and payment of dividends and the timing and amount thereof;
potential NCIB purchases and the anticipated advantages to
shareholders of the NCIB. Future dividend payments and share
buybacks, if any, and the level thereof, are uncertain, as the
Company's return of capital framework and the funds available for
such activities from time to time is dependent upon, among other
things, free funds flow financial requirements for the Company's
operations and the execution of its growth strategy, fluctuations
in working capital and the timing and amount of capital
expenditures, debt service requirements and other factors beyond
the Company's control. Further, the ability of Tamarack to pay
dividends and buyback shares will be subject to applicable laws
(including the satisfaction of the solvency test contained in
applicable corporate legislation) and contractual restrictions
contained in the instruments governing its indebtedness, including
its credit facility.
The forward-looking statements contained in this document are
based on certain key expectations and assumptions made by Tamarack,
including those relating to: the business plan of Tamarack; the
timing of and success of future drilling, development and
completion activities; the geological characteristics of Tamarack's
properties; the continued successful integration of acquired 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: risks with respect
to unplanned third party pipeline outages and risks relating to
inclement and severe weather events and natural disasters, such as
fire, drought and flooding, including in respect of safety, asset
integrity and shutting-in production; the risk that future dividend
payments are reduced, suspended or cancelled or that Tamarack will
not be able to achieve the anticipated benefits of the NCIB;
unforeseen difficulties in integrating of recently acquired assets
into Tamarack's operations; incorrect assessments of the value of
benefits to be obtained from acquisitions and exploration and
development programs; 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, including the impact of the
actions of OPEC and OPEC+ members; changes in legislation,
including but not limited to tariffs, tax laws, royalties and
environmental regulations (including greenhouse gas emission
reduction requirements and other decarbonization or social policies
and including uncertainty with respect to the interpretation of
omnibus Bill C-59 and the related amendments to
the Competition Act (Canada)); the uncertainty of estimates and
projections relating to production, cash generation, costs and
expenses, including increased operating and capital costs due to
inflationary pressures; health, safety, litigation and
environmental risks; access to capital; and pandemics. In addition,
ongoing military actions between Russia and Ukraine and the recent crisis in Israel and Gaza have the potential to threaten the supply
of oil and gas from those regions. The long-term impacts of the
actions between these nations remains uncertain. Due to the nature
of the oil and natural gas industry, drilling plans and operational
activities may be delayed or modified to respond to market
conditions, results of past operations, regulatory approvals or
availability of services causing results to be delayed. Please
refer to the Company's annual information form for the year ended
December 31, 2023, and management's
discussion and analysis for the period ended September 30, 2024, 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.sedarplus.ca. 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.
SOURCE Tamarack Valley Energy Ltd.
