Mr. Brian Schmidt reports

TAMARACK VALLEY ENERGY ANNOUNCES MONTHLY DIVIDEND DECLARATION, NCIB RENEWAL AND INITIATION OF ENHANCED SHAREHOLDER RETURNS

Tamarack Valley Energy Ltd. has declared its monthly dividend, renewed its normal course issuer bid (NCIB) and achieved the first debt threshold under the company's previously disclosed return of capital framework.

Dividend declaration

Tamarack's board of directors has declared a monthly cash dividend on its common shares of 1.25 cents per share in accordance with the company's dividend policy. The dividend will be payable on Feb. 15, 2024, to shareholders of record at the close of business on Jan. 31, 2024. This monthly cash dividend is designated as an eligible dividend for Canadian income tax purposes.

NCIB renewal

The Toronto Stock Exchange has approved the company's application to renew its NCIB. Under the previous NCIB, the company received approval to purchase up to 27,847,033 common shares through TSX and alternative Canadian trading systems, however, zero purchases were made.

The company had 556,940,664 common shares issued and outstanding as at Jan. 8, 2024. The NCIB allows Tamarack to purchase up to 54,649,379 common shares of the company (representing approximately 10 per cent of the 546,493,794 issued and outstanding common shares that comprise the public float as of Jan. 8, 2024) over a period of 12 months commencing on Jan. 19, 2024. The NCIB will expire no later than Jan. 18, 2025. 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 623,278 common shares, representing 25 per cent of the average daily trading volume of 2,493,112 common shares on the TSX calculated for the six-month period ended Dec. 31, 2023. 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.

Initiation of enhanced returns

Tamarack is pleased to announce that, exiting 2023, the company achieved its first debt threshold within its return of capital framework. This milestone is the result of disciplined capital allocation, strategic dispositions and, most importantly, the success of its continuing Clearwater and Charlie Lake development programs.

As a result of achieving this key milestone, the company will be accelerating initiation of the enhanced return, ahead of announcing its 2023 fourth quarter and year-end financial results, utilizing share buybacks given current valuation levels. The company expects to release its 2023 results prior to the market open on Feb. 28, 2024.

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 enhanced oil recovery plays in Alberta. Operating as a responsible corporate citizen is a key focus to ensure it delivers on its environmental, social and governance commitments and goals.

We seek Safe Harbor.