Mr. Brian Schmidt reports

TAMARACK VALLEY ENERGY ANNOUNCES 2026 CORPORATE BUDGET, ADDITIONAL SHAREHOLDER RETURNS AND APPOINTMENT OF NEW DIRECTOR

Tamarack Valley Energy Ltd. has released its 2026 budget and guidance for the upcoming year in respect of the continuing development of the company's Clearwater and Charlie Lake assets.

Tamarack has designed a scaled 2026 capital investment program of $390-million to $410-million to maximize total return while maintaining flexibility in the prevailing commodity price cycle. This moderated capital program is projected to generate year-over-year production growth of approximately 3 per cent primarily reflecting the impact of development activities in 2026 and continuing waterflood investments in 2024 and 2025. At a budget price of $60 (U.S.) per barrel WTI (West Texas Intermediate), Tamarack expects to generate significant free funds flow and deliver strong returns to shareholders through sustainable base dividends, share buybacks and net debt reduction.

Tamarack is projecting a sustaining free funds flow breakeven cost of approximately $35 (U.S.) per barrel WTI (less than $40 (U.S.) per barrel WTI, unhedged), as the company continues to drive higher margins in the business through improved capital efficiencies, higher price realizations, lower costs and portfolio optimization. Tamarack's corporate production decline rate is anticipated to be 22 per cent for the full year, with continuing success from primary development and secondary waterflood expansion in the Clearwater continuing to exceed expectations driving higher production growth and lower declines. Together, the low breakeven oil price and declining reinvestment rates have provided Tamarack with greater resiliency in a lower commodity price environment.

Budget and guidance update

Approximately 70 per cent of the company's 2026 capital investment program is dedicated to the Clearwater for continuing primary development and waterflood expansion. Development activities include the drilling of greater than 75 Clearwater primary development wells, an approximately 18 per cent decline from 2025 and the implementation of greater than 65 new injection wells (including 25 conversions) across the Nipisi, West Marten, Marten Hills and South Clearwater areas. Waterflood investments are forecasted to be $100-million, which represents double that of 2025 in response to the continuing success of the program. Clearwater injection rates are expected to grow by 70 per cent to 60,000 barrels per day (exit to exit injection rates) and with greater than 35 per cent of Clearwater oil production under waterflood by the end of 2026. Tamarack expects that expanded waterfloods investments will further accelerate decline mitigation and lower future reinvestment ratios longer term, which will enable the company to offer more torque to growth at higher commodity price cycles.

Tamarack is allocating 20 per cent of the capital investment budget for continuing development of Charlie Lake with plans to maintain a flat exit rate production profile, utilizing a one-rig program to drill 10 wells at Pipestone and Wembley. Tamarack's scalable Charlie Lake asset continues to attract capital with top-tier light oil inventory characterized by quick cycle times, low breakeven costs and first payouts within one year.

Tamarack's derisk and exploration budget includes opportunities in the greater Clearwater fairway and Pelican area. Tamarack recently increased its land position in the Pelican area to 31.25 net sections. Industry activity at Pelican has been promising with two operators implementing polymer-enhanced recovery schemes offsetting Tamarack's lands in the Wabiskaw oil formation, and a third operator in the area demonstrating early success in the Clearwater. Tamarack plans to drill both the Wabiskaw and Clearwater oil zones at Pelican in 2026.

Tamarack estimates 2026 sustaining capital to be $265-million, reflecting a 16-per-cent reduction in sustaining capital requirements compared with the prior year. Strong reservoir response and decline mitigation from the waterflood expansion, combined with continuing capital efficiencies from multiwell-pad development, level-loaded drilling schedules and solid run times, have lowered the sustaining capital and reinvestment requirements for the company to maintain corporate production levels.

The company's capital investment program is expected to deliver year-over-year production growth of approximately 3 per cent, which equates to approximately 9 per cent when adjusted for non-core asset divestitures in 2025. This growth primarily reflects the impact of development activities in 2026 and continuing waterflood investments in 2024 and 2025. Tamarack is targeting lower production growth in 2026 in response to the weaker WTI price outlook for the full year. Tamarack remains nimble and may scale the 2026 capital program in either direction if prices materially fluctuate during the year.

Net production expenses in 2026 are anticipated to decline by 6 per cent compared with the prior year, primarily due to non-core property dispositions in 2025, which carried higher per-barrel costs relative to Tamarack's corporate averages on retained assets. The company also continues to drive lower per-barrel costs through field infrastructure investments, lower water handling and trucking costs from waterflood reinjection, carbon abatement initiatives, higher production, and reduced workover costs.

Five-year plan update and additional shareholder returns

Tamarack's recently updated five-year plan reflects the continuing improvements in the profitability of the business through a combination of a lower cost structure, lower corporate decline rates, lower reinvestment requirements and lower corporate breakeven oil prices leading to higher free cash flow generation. Together with lower debt and a laddered debt maturity, Tamarack is uniquely positioned to generate sustainable total returns to shareholders through a combination of growth, debt reduction, share buybacks and the base dividend.

With the improvements demonstrated in the updated long-range plan, the company has achieved its net debt target of one times net debt to adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) at $50 (U.S.) per bbl WTI and is allocating additional free funds flow to share buybacks in 2026. Tamarack seeks to maximize per share returns and value to shareholders across commodity price cycles. Refer to the investor presentation on Tamarack's website for additional information regarding the company's updated five-year plan and accelerated shareholder returns.

Board of directors update

Tamarack is pleased to announce the board appointment of Craig Bryksa to the company's board of directors, effective Dec. 2, 2025. Mr. Bryksa most recently served as president and chief executive officer of Veren Inc. until its combination with Whitecap Resources Inc. in May, 2025. Prior to this role, he held various senior management positions within the organization, including vice-president, Engineering West, after joining the company in 2006. His industry experience as a professional engineer also includes roles with Enerplus Resources Fund and McDaniel & Associates Consultants. He currently serves on the board of directors of Whitecap Resources Inc.

About Tamarack Valley Energy Ltd.

Tamarack is a corporation engaged in the exploration, development, production, and sale of oil and natural gas in the Western Canadian sedimentary basin. The company is currently developing two projects in Northern Alberta -- a Clearwater heavy oil position at Nipisi, Marten Hills and South Clearwater and a Charlie Lake light oil position at Valhalla, Wembley and Pipestone. Tamarack holds an extensive inventory of low-risk, oil development drilling locations and is pursuing enhanced oil recovery upside across the company's core asset areas. Tamarack is committed to creating long-term value for its shareholders through sustainable free funds flow generation, financial stability and the return of capital. The company is publicly traded on the Toronto Stock Exchange under the symbol TVE.

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