Mr. Cameron MacDonald reports

TENTH AVENUE PETROLEUM ANNOUNCES SECOND QUARTER 2023 FINANCIAL, OPERATING RESULTS & OPERATIONAL UPDATE

Tenth Avenue Petroleum Corp. has released its financial and operating results for the three and six months ended June 30, 2023. The associated management's discussion and analysis (MD&A) and unaudited interim financial statements for the three and six months ended June 30, 2023, can be found on SEDAR+ and on Tenth Avenue's website.

The company's key results in the second quarter of 2023 included the following:

• Average Q2 2023 production of 143 boe/d (barrels of oil equivalent/day) (78 per cent oil and NGLs (natural gas liquids));
• Generated adjusted funds flow deficit of $120,205 in Q2/23 (nil per share basic and diluted);
• Exited the quarter with a working capital surplus of $67,978;
• Current production is approximately 180 boe/d (85 per cent oil and NGLs) based on August field estimates.

Revenue in Q2 2023 was $898,217, a 12-per-cent decrease from Q1 2023 revenue of $1,018,566 and a 41-per-cent decrease from Q2 2022 revenue of $1,523,771. The 41-per-cent decrease in revenue in Q2 2023 compared with Q2 2022 was due entirely to the decrease in West Texas Intermediate (WTI) benchmark prices ($73.78 (U.S.)/bbl (barrel) in Q2 2023 compared with$108.41 (U.S.)/bbl in Q2 2022), lower AECO daily index natural gas prices ($2.40 in Q2 2023 compared with $7.16 in Q2 2022), and a decrease in the percentage of oil and natural gas liquids (NGLs) production.

Year-over-year commodity prices also caused a 65-per-cent decrease to cash provided from operating activities during Q2 2023 compared with $149,049 in Q2 2022.

The company's average production was 143 boe/d (78 per cent oil and NGLs) in Q2 2023, down 17 per cent from 173 boe/d (75 per cent oil and NGLs) in Q1 2023 due to downtime associated with three wells. The company lost approximately 10 boe/d of production during the quarter as it commenced an acid cleanup and reperforation operations on all three wells in June, 2023. The Murray Lake (1-1) and the Vulcan (5-21) oil wells came back on production in early August with production rates higher than previous Q2 2023 levels.

Operational update

The production increases as a result of the acid cleanup and reperforation work have the company currently producing at record levels of approximately 180 boe/d (85 per cent oil and NGLs) based on August field estimates. The company is very excited about the better-than-expected results and is reviewing other well candidates.

The company has been disciplined in maintaining operational flexibility by quickly adapting to changing field and commodity price fluctuations, while continuing to balance organic growth with future acquisition opportunities within cash flow.

About Tenth Avenue Petroleum Corp.

Tenth Avenue Petroleum is a junior oil and gas exploration and production company with operations in Alberta.

We seek Safe Harbor.