Mr. Cameron MacDonald reports

TENTH AVENUE PETROLEUM ANNOUNCES 2023 YEAR-END RESULTS AND RESERVES

Tenth Avenue Petroleum Corp. has released its financial and operating results for the three months and 12 months ended Dec. 31, 2023, and highlights of the company's year-end independent reserve evaluation.

During 2023, the company increased production by 24 per cent to average 144 barrels of oil equivalent/day compared with 116 boe/d in 2022, negative $13,667 of adjusted funds flow from operations and shallowing production declines at the Murray Lake and Hays properties aided in the production increase on a modest 2023 capital program of $482,554. The company exited 2023 at approximately 134 boe/d which excluded approximately 15 boe/d of curtailed production due to a saltwater disposal line failure at Murray Lake. The company has recently received Alberta Energy Regulator approval to convert an existing horizontal well into an injection well, which should improve overall field injection volumes across the entire pool, and plans are in place to rectify this curtailment once existing road bands in the area have been lifted. Operating costs and field netbacks in fourth quarter 2023 have been negatively impacted by the curtailment.

The company spent the majority of the second half of 2022 and all of 2023 increasing pumping capacity on most of its producing wells within its core areas of Murray Lake, currently being waterflooded, and at Hays. The company also increased its water handling capacity at Murray Lake in Q3 2022 which allowed the company to gradually increase water injection rates that resulted in improved waterflood performance and positive technical reserve additions as reported in the independent reserve evaluation dated Dec. 31, 2023.

"Our 2023 year-end reserves highlight the benefits of the capital investments made in late 2022 and 2023 in our core areas. At our Murray Lake and Hays properties, our 2P reserve volumes increased by 36 per cent and 35 per cent, respectfully, while the net present value (10 per cent) also increased by 59 per cent and 42 per cent, year-over-year. These positive results were offset in particular by a downward technical revision at our Vulcan 102/6-11-15-26W4 gas well and our Swan Hills unit (non-operated) properties. These technical revisions were due in part to lower productivity, paired with lower future AECO gas prices and higher future operating costs, which negatively impacted the economic cut-off and associated reserves assigned to these two properties.

"The company achieved many accomplishments in 2023. It realized positive waterflood results in Murray Lake which led to shallower production declines and an increase in reserves and furthered its workover program with successful results in Hays which also lead to positive reserve additions. The company was also able to reduce operating costs on its two core operated areas of Hays and Murray Lake in H2 2023 which will become realized on a per boe basis once the company brings its curtailed production back on-line in mid-2024. The company will continue to prudently invest on its longer-term core assets and improve netbacks focusing on return on investments," said Cameron MacDonald, president and chief executive officer.

Subsequent to Dec. 31, 2023, the company has entered into the following hedges: 50 barrels/d at $104/bbl, effective April 1 to Dec. 31, 2024, and 25 bbl/d at $108.25/bbl, effective May 1 to Dec. 31, 2024. These hedges represent approximately 75 per cent of its current oil production.

Selected financial and operational information is set out below and should be read in conjunction with Tenth Avenue's audited annual financial statements and related management's discussion and analysis (MD&A) for the years ended Dec. 31, 2023, and 2022, which are available on SEDAR+ and the company's website. The highlights reported in this press release include certain non-GAAP (generally accepted accounting principles) financial measures and ratios.

2023 financial and operating highlights:

• Average 2023 production of 144 boe/d (80 per cent oil and natural gas liquids (NGLs), an increase of 24 per cent from 116 boe/d (92 per cent oil and NGLs) in 2022.
• Gross revenue in 2023 of $3,853,361, a 2-per-cent decrease from $3,923,501 in 2022, while commodity prices during the same period decreased by 23 per cent from $100.15/boe in 2022 to $71.31/boe in 2023.
• During the third quarter, the company entered into a physical crude oil agreement to hedge 50 bbl/d at a price of $116.50 per barrel, resulting in a realized gain of $44,938 and unrealized gain on derivatives of $68,603, for a total of $2.16/boe during 2023.
• During 2023, the company made a significant investment upgrading its pumping equipment on all of its core assets that are currently under waterflood. Total capital spent in 2023 was $482,554, a 43-per-cent decrease from $843,802 in 2022, while increasing production by 24 per cent during the same period.
• As at Dec. 31, 2023, the company had $22,923,000 of tax pools, including $16,503,000 in non-capital losses.

The attached table summarizes the company's financial and operating results for the three months and 12 months ended Dec.31, 2023, and Dec. 31, 2022.

2023 reserve highlights:

• Proved plus probable (2P) reserves of 461,200 barrels of oil equivalent (boe) of which 88 per cent is oil, condensate and natural gas liquids totalling net present value of proved and probable reserves (10 per cent) of $6.34-million.
• Total proved (1P) reserves of 249,600 barrels of oil equivalent of which 88 per cent is oil, condensate and natural gas liquids totalling net present value of proved and probable reserves (10 per cent) of $2.99-million.
• Proved developed and producing (PDP) reserves of 213,500 barrels of oil equivalent of which 93 per cent is oil, condensate and natural gas liquids totalling net present value of proved and probable reserves (10 per cent) of $2.89-million.
• The company's 2P reserve life index (RLI) is approximately 9.4 years based on 2023.

The company's reserves were independently evaluated by Trimble Energy Group as at Dec. 31, 2023. The reserves evaluation and reporting were conducted in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities). Additional information on the company's Dec. 31, 2023, reserves is available on SEDAR+ and the company's website.

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.