Calgary, Alberta--(Newsfile Corp. - August 5, 2026) - Tenaz Energy Corp. (TSX: TNZ) ("Tenaz", "We", "Our", "Us" or the "Company") is pleased to announce financial and operating results for the second quarter of 2026.

The related unaudited interim condensed consolidated financial statements and management's discussion and analysis ("MD&A") are available on SEDAR+ at www.sedarplus.ca and on Tenaz's website at www.tenazenergy.com.

HIGHLIGHTS

• Production averaged 17,125 boe/d⁽¹⁾ in Q2 2026, up 6% from Q1 2026 due to organic development activity, despite major turnarounds on several facilities in the Netherlands. Q2 2026 production was more than double that of Q2 2025, reflecting both organic development and two major acquisitions completed in 2025. Our preliminary production estimate for the month of July 2026 is approximately 23,000 boe/d (90% European natural gas).

• During the quarter, we brought four (1.9 net) wells on production that were drilled in Q1 2026 and participated in the drilling of two (0.9 net) development wells. In addition, we conducted or participated in seasonal maintenance on the L2, L9 and N05 platforms, along with planned turnaround activity at the Den Helder plant.

• We completed drilling operations on the K17-FA-103 well during Q2 2026. During July 2026, we completed stimulation and perforation operations. During a two day clean-up flow, the well produced at a rate of 15.7 MMcf/d (9.4 MMcf/d net) at a flowing wellhead pressure of 520 psi.

• At our non-operated GEMS asset, operator ONE-Dyas completed drilling operations on the N05-A-02X development well. In early July, the well was tested and brought on production at a restricted rate of 74 MMcf/d (25 MMcf/d net). This is the third successful well in the N05-A pool, representing a 100% success rate to date. The initial results show similar reservoir characteristics to the N05-A-01 well, which continues to produce at a rate of 74 MMcf/d (25 MMcf/d net). These two wells are the highest producing rate wells in the Netherlands.

• Operating netback⁽²⁾ for Q2 2026 was $69.05/boe, a 20% increase from Q1 2026 and a 47% increase from Q2 2025. This improvement is primarily due to our increasing exposure to European natural gas, which comprised 85% of our production base in Q2 2026, compared to 71% in Q2 2025.

• Funds flow from operations⁽²⁾ ("FFO") for the second quarter was $74.2 million ($2.26 per basic share) as compared to $64.6 million ($2.02 per basic share) in Q1 2026, with higher production and commodity pricing partially offset by hedging losses.

• Capital investment⁽²⁾ for the second quarter was $58.2 million, resulting in Q2 2026 free cash flow⁽²⁾ of $16.0 million.

• Net income of $89.0 million was recorded in Q2 2026, compared to a net loss of $111.1 million in Q1 2026. A $94 million unrealized gain on derivative instruments partially reversed the unrealized loss on derivatives recorded in the first quarter, along with higher operating earnings in Q2 2026.

• We ended Q2 2026 with a net debt⁽²⁾ position of $378.2 million, a decrease of $11.2 million over the previous quarter as a result of positive free cash flow generated in the quarter. This debt level is less than one times forecast 2026 FFO at the current commodity strip.

• We continue to allocate a portion of our free cash flow to our NCIB program. During Q2 2026, Tenaz repurchased a total of 143,100 shares at a weighted average price of $49.78 per share. Since the inception of the program in 2022, we have retired 2.6 million shares at an average cost of $8.06 per share.

• Year-to-date, Tenaz shares have appreciated 100%. Since the recapitalization in Q3 2021, Tenaz has returned 2,852%, placing Tenaz in the top percentile of all TSX corporate issuers.

⁽¹⁾ The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Per boe amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 Mcf) of natural gas to one barrel (1 bbl) of crude oil. Refer to "Barrels of Oil Equivalent" in the "Advisories" section.
⁽²⁾ This is a non-GAAP and other financial measure. Refer to "Non-GAAP and Other Financial Measures" in the "Advisories" section.

⁽¹⁾ This is a non-GAAP measure. Refer to "Non-GAAP and Other Financial Measures" in the "Advisories" section.
⁽²⁾ The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Per boe amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 Mcf) of natural gas to one barrel (1 bbl) of crude oil. Refer to "Barrels of Oil Equivalent" in the "Advisories" section.
⁽³⁾ WTI represents posting price of West Texas Intermediate ("WTI") crude oil.
⁽⁴⁾ WCS represents posting price of Western Canadian Select ("WCS") crude oil.
⁽⁵⁾ AECO is the natural gas price index for Alberta.
⁽⁶⁾ TTF is the price for natural gas in the Netherlands.

PRESIDENT'S MESSAGE

We continue to execute our organic growth strategy. Following the conclusion of facility turnarounds and the tie-in of new wells, Tenaz’s preliminary production estimate for the month of July 2026 is approximately 23,000 boe/d (90% European natural gas). This production growth comes during a time of elevated European natural gas prices due to the war in the Middle East.

Geopolitical problems persisted through the second quarter and continue at the time of this report. Despite a temporary ceasefire agreement and a brief resumption of a limited number of LNG shipments through the Strait of Hormuz, the Strait remains largely closed. The ongoing conflict has resulted in volatility across the commodity complex. The TTF⁽³⁾ benchmark price averaged €45.64/MWh ($21.53/Mcf) in Q2 2026 and is now trading at approximately €53.50/MWh ($25.40/Mcf). Europe currently has a low natural gas storage level of about 58% of capacity, compared to a five-year average of approximately 75%. Natural gas storage is projected to end the injection season significantly below the European Union's originally stated target of 90%, probably in the range of 70% to 75%. These market dynamics are reflected in the TTF forward curve, which is above €51.50/MWh ($24.45/Mcf) through the 2026/27 heating season.

Activity levels in both our operated and non-operated assets remained high through Q2 2026, with tie-in of wells drilled in Q1 2026, ongoing drilling and completion activity on new wells, and seasonal turnarounds on several platforms and facilities. In addition, subsequent to the end of Q2 2026, we took delivery of the Triton-10 jack-up barge, which will allow us to conduct a workover campaign in H2 2026 and beyond.

Production for Q2 2026 averaged 17,125 boe/d⁽¹⁾, up 6% over Q1 2026, despite the turnarounds typical of the second quarter of each year. We generated record quarterly funds flow from operations ("FFO")⁽²⁾ of $74 million, representing a 15% increase over Q1 2026. E&D capital expenditures⁽²⁾ of $58 million during Q2 2026 were down 37% from the first quarter, resulting in Q2 2026 free cash flow⁽²⁾ of $16 million. As a result, our net debt⁽²⁾ decreased 3% from the prior quarter to $378 million, representing less than one times 2026 forecasted FFO at the current commodity strip.

We are pleased with the results of our 2026 capital program to date and are proud of what our growing team has achieved over the past year. We expect to deliver strong growth in the second half of this year, having emerged from the Q2 2026 turnarounds and continuing our organic development program. We have an extensive long-term development and exploration inventory, and we continue to work up future projects and well locations for multi-year workover and drilling campaigns. These investment programs, in cooperation with our industry partners, will provide a meaningful level of support to Europe's energy needs and economic growth.

Netherlands Assets

Tenaz’s Netherlands production averaged 14,552 boe/d in the second quarter of 2026, representing 4% growth over the prior quarter despite annual turnaround activity. New production in Q2 2026 from the K07-FB-103 (45.65% working interest), L10-Malachite (21.4% working interest) and N05-A-03 (33.3% working interest) wells was partially offset by planned seasonal maintenance during the quarter. With the Q2 2026 turnaround activity complete, our preliminary estimate of July working interest production from our Dutch North Sea (“DNS”) assets was nearly 21,000 boe/d, making Tenaz the largest natural gas producer in the Netherlands.

We had two drilling rigs running during the quarter, with one on our operated DNS assets and one on our non-operated GEMS asset. We completed drilling operations on the K17-FA-103 well (60% working interest). Subsequent to the end of Q2 2026, we conducted stimulation and perforating operations on this well, followed by a two day clean-up flow at a rate of 15.7 MMcf/d (9.4 MMcf/d net) at a 520 psi flowing wellhead pressure. We will now turn to tie-in of the K17-FA-103 and the drilling of the K17-FA-102B sidetrack well (60% working interest) on the same monopod platform.

Late in Q2 2026, GEMS operator ONE-Dyas completed drilling operations on the N05-A-02X development well. In early July, this well was tested and brought on production at a restricted rate of 74 MMcf/d (25 MMcf/d net). This is the third successful well on the GEMS assets in the N05-A pool, representing a 100% success rate in the drilling campaign to date. The initial results show similar reservoir characteristics to the N05-A-01 well which continues to produce at a rate of 74 MMcf/d (25 MMcf/d net). Following tie-in of the N05-A-02X well, ONE-Dyas commenced drilling of the Noord extension well to the N05-A pool (33.3% working interest).

There was a relatively low level of well activity on our other non-operated assets during the quarter. Operator Eni brought on the L10-Malachite well (21.4% working interest) at a production rate of 14 MMcf/d (3 MMcf/d net). Subsequent to the end of Q2 2026, operator Eni spud a sidetrack well (12.3% working interest) in the K12 block.

In addition to the drilling rig activity, we conducted regular seasonal maintenance on our operated L2 and L9 platforms, along with routine maintenance at the Den Helder plant. On our non-operated assets, Eni and ONE-Dyas also executed annual maintenance with planned downtime at G14, L10/K12 and N05. Planned maintenance reduced Q2 2026 production by approximately 2,500 boe/d, which has subsequently been restored.

Canadian Assets

Production from our Canadian assets averaged 2,573 boe/d in the second quarter, a 20% increase over the prior quarter. The increase reflects production from our Q1 2026 three-well drilling campaign and lower downtime compared to Q1 2026.

Commodity Environment

TTF gas prices averaged €45.64/MWh ($21.53/Mcf) during Q2 2026, representing a 16% increase over Q1 2026. Prices were range-bound between €40 and €50/MWh for most of Q2 2026, as intermittent peace talks occurred between the United States and Iran, ultimately generating a cease-fire which allowed the resumption of oil and natural gas shipments through the Strait of Hormuz.

Subsequent to the end of the quarter, both the United States and Iran violated the cease-fire and resumed military action, effectively shutting down commercial shipments through the Strait of Hormuz. Renewed conflict has exacerbated LNG supply constraints and is putting upward pressure on prices. QatarEnergy has extended force majeure on LNG exports through mid-October, signaling an expectation of ongoing export disruptions.

This is all occurring at a time when Asian LNG demand is rising seasonally and European natural gas storage levels are only at 58% of storage capacity, which is below typical levels. The EU has added flexibility to mandated storage targets, allowing member states to deviate up to 10% below the 90% requirement. Many market experts are now projecting that storage levels will not reach 80% by the end of the injection season, which could put upward pressure on European natural gas prices heading into the winter.

At present, the TTF benchmark price is approximately €53.50/MWh ($25.40/Mcf), with the price for the remainder of 2026 at €53.10/MWh ($25.21/Mcf). We have hedged approximately 56% of our expected 2026 TTF natural gas production at an average price of €31.83/MWh ($15.11/Mcf), 41% for 2027 at an average price of €34.06/MWh ($16.17/Mcf) and 8% for 2028 at an average price of €30.31/MWh ($14.39/Mcf).

WTI⁽⁴⁾ crude oil prices averaged US$92.79/bbl for Q2 2026, but ended the quarter just under US$70/bbl as crude oil shipments resumed through the Strait of Hormuz following the ceasefire agreement. WTI crude oil prices remain volatile, buffeted by military action, tweets and reports of negotiations. The current WTI price of approximately US$75.00/bbl is back above the low reached during the brief reopening of the Strait, and remains exposed to geopolitical events and continued drawdown of inventories. Our WTI price exposure is 34% hedged in 2026 with an average floor of US$67.64/bbl and 6% for 2027 at a floor of US$65.00/bbl.

AECO⁽⁵⁾ natural gas prices averaged $1.63/Mcf for Q2 2026, reflecting weaker seasonal demand and restrictions related to infrastructure maintenance. For 2026 and 2027, we are hedged at 56% and 43% of our AECO exposure at $3.14/Mcf.

Financial Position

Net income was $89 million in Q2 2026, compared with a net loss of $111 million in Q1 2026. The quarter-over-quarter increase was primarily driven by a $94 million unrealized gain on derivative instruments, which partially reversed the unrealized loss recorded in the first quarter, coupled with higher operating earnings from increased natural gas production and stronger realized pricing.

We exited Q2 2026 with a net debt position of $378 million, which is less than one times forecast 2026 FFO using the current commodity strip. Our 2026 capital program is funded within FFO at the strip and our commodity hedging program provides significant downside protection.

Net debt is primarily comprised of our outstanding Senior Unsecured Notes ("Notes"), with a total principal outstanding of $305 million. The Notes, which are callable in May of 2027 have showed strong pricing in the secondary market with current indications pricing a yield-to-worst of 5.9%. Additional liquidity is accessible from our currently undrawn $250 million syndicated revolving facility.

We continue to allocate a portion of our free cash flow to our NCIB program. During Q2 2026, Tenaz repurchased a total of 143,100 shares at a weighted average price of $49.78 per share. Since the inception of the program in 2022, we have retired 2.6 million shares at an average cost of $8.06 per share.

In summary, we appreciate the efforts of all stakeholders to assist Tenaz in our primary mission of providing energy supply growth to Europe and resulting returns to shareholders. We view our multi-pronged organic development as a diversified way of securing this production growth, and look forward to our Q3 2026 report on our operational and financial results.

/s/ Anthony Marino

President and Chief Executive Officer
August 5, 2026

⁽¹⁾ The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Per boe amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 Mcf) of natural gas to one barrel (1 bbl) of crude oil. Refer to "Barrels of Oil Equivalent" in the "Advisories" section.
⁽²⁾ This is a non-GAAP measure. Refer to "Non-GAAP and Other Financial Measures" in the "Advisories" section.
⁽³⁾ TTF is the price for natural gas in the Netherlands.
⁽⁴⁾ WTI represents posting price of West Texas Intermediate (“WTI”) crude oil.
⁽⁵⁾ AECO is the natural gas price index for Alberta.

About Tenaz Energy Corp.

Tenaz is an energy company focused on the acquisition and sustainable development of international oil and gas assets. Tenaz is the largest natural gas producer in the Netherlands and develops crude oil and natural gas at Leduc-Woodbend in Alberta. Additional information regarding Tenaz is available on SEDAR+ and at www.tenazenergy.com. Tenaz's common shares are listed for trading on the Toronto Stock Exchange under the symbol "TNZ".

ADVISORIES

Non‐GAAP and Other Financial Measures

This press release contains the terms funds flow from operations and capital expenditures which are considered "non-GAAP financial measures" and operating netback which is considered a "non-GAAP financial ratio". These terms do not have a standardized meaning prescribed by GAAP. In addition, this press release contains the term net debt, which is considered a "capital management measure". Accordingly, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. Investors are cautioned that these measures should not be construed as an alternative to net income (loss) determined in accordance with GAAP and these measures should not be considered to be more meaningful than GAAP measures in evaluating the Company's performance.

Funds flow from operations ("FFO")

Tenaz considers funds flow from operations to be a key measure of performance as it demonstrates the Company's ability to generate the necessary funds for sustaining capital, future growth through capital investment, and settling liabilities. Funds flow from operations is calculated as cash flow from operating activities plus midstream income and before changes in non-cash operating working capital, decommissioning liabilities settled, and the amortization of deferred financing. Funds flow from operations is not intended to represent cash flows from operating activities. A summary of the reconciliation of cash flow from operating activities to funds flow from operations is set forth below:

⁽¹⁾ FFO per share (basic) is calculated as FFO divided by the weighted average common shares outstanding. FFO per share (diluted) adjusts for the impact of potentially dilutive securities using the treasury stock method.

Capital Expenditures

Tenaz considers capital expenditures to be a useful measure of the Company's investment in its existing asset base calculated as the sum of exploration and evaluation asset expenditures and property, plant and equipment expenditures from the consolidated statements of cash flows that is most directly comparable to cash flows used in investing activities. The reconciliation to primary financial statement measures is set forth below:

Free Cash Flow ("FCF")

Tenaz considers free cash flow to be a key measure of performance as it demonstrates the Company's excess funds generated after capital expenditures for potential shareholder returns, acquisitions, or growth in available liquidity. FCF is a non-GAAP financial measure and is comprised of funds flow from operations less capital expenditures. A summary of the reconciliation of the measure is set forth below:

Midstream Income

Tenaz considers midstream income an integral part of determining operating netbacks. Operating netbacks assist management and investors with evaluating operating performance. Tenaz's midstream income consists of the income from its associate, Noordgastransport B.V. ("NGT"), and excludes the amortization of fair value increment of NGT that is included in the equity investment on the balance sheet. Under IFRS Accounting Standards, investments in associates are accounted for using the equity method of accounting. Income from associate is Tenaz's share of the investee's net income and comprehensive income:

Net debt

Management views net debt as a key industry benchmark and measure to assess the Company's financial position and liquidity. Net debt comprises long-term debt and non-current contingent consideration, plus current liabilities in excess of current assets, excluding the fair value of derivative instruments included in working capital. If negative, the amount is referred to as adjusted working capital.

Net debt to funds flow from operations is a ratio calculated as net debt divided by funds flow from operations. Net debt to annualized funds flow from operations ratio is calculated as net debt divided by funds flow from operations for the respective quarter, annualized by multiplying by four. Management views these ratios as measures to assess the Company's financial leverage. Funds flow from operations is a non-GAAP measure. Refer to "Funds flow from operations" included in this "Advisories" section.

Operating Netback

Tenaz calculates operating netback on a dollar or per boe basis, as petroleum and natural gas sales less royalties, operating costs and transportation costs, plus midstream income. Operating netback is a key industry benchmark and a measure of performance for Tenaz that provides investors with information that is commonly used by other crude oil and natural gas producers. The measurement on a per boe basis assists management and investors with evaluating operating performance on a comparable basis.

Per Share Ratios

FFO per share (basic) is calculated as FFO divided by the weighted average number of common shares outstanding. Diluted FFO per share adjusts for the impact of potentially dilutive securities using the treasury stock method.

Barrels of Oil Equivalent

The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Per boe amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 Mcf) of natural gas to one barrel (1 bbl) of crude oil. The boe conversion ratio of 6 Mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Forward‐looking Information

This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "budget", "forecast", "guidance", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "potential", "intends", "strategy" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains forward-looking information and statements pertaining to: expected free cash flow and uses thereof; liquidity; providing energy supply growth to Europe; Tenaz's inventory of opportunities and projects; capital plans, activities and budget including workover and drilling opportunities and activities; our anticipated operational and financial performance including well performance, estimated production and production growth; our 2026 production and capital guidance; share buybacks; commodity prices; hedging; and the Company's strategy including our organic growth and potential to expand our asset portfolio.

The forward-looking information and statements contained in this press release reflect several material factors and expectations and assumptions of Tenaz including, without limitation: the continued performance of Tenaz's oil and gas properties in a manner consistent with its past experiences; that Tenaz will continue to conduct its operations in a manner consistent with past operations; expectations regarding future development; the general continuance of current industry conditions; the continuance of existing (and in certain circumstances, the implementation of proposed) tax, royalty, tariff and regulatory regimes; expectations regarding future acquisition opportunities; the accuracy of the estimates of the Company's reserves, resources and future net revenue; certain commodity price, interest rate, tariffs, inflation and other cost assumptions; the continued availability of oilfield services; and the continued availability of adequate debt and equity financing and cash flow from operations to fund its planned expenditures.

Tenaz believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable, but no assurance can be given that these factors, expectations, and assumptions will prove to be correct.

The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Tenaz's products; unanticipated operating results or production declines; changes in tax or environmental laws, tariffs, royalty rates or other regulatory matters; changes in development plans of Tenaz or by third party operators of Tenaz's interests; increased debt levels or debt service requirements; inaccurate estimation of Tenaz's oil and gas reserve volumes or resources; limited, unfavorable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; a failure to obtain necessary approvals as proposed or at all and certain other risks detailed from time to time in Tenaz's public documents.

The forward-looking information and statements contained in this press release speak only as of the date of this press release and, except as may be required pursuant to applicable laws, Tenaz does not assume any obligation to publicly update or revise them to reflect new events or circumstances.

/NOT FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW/

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