Tamarack closes non-core asset sale in eastern Alberta

Executive Summary

• Tamarack Valley Energy Ltd. closed the previously announced sale of its non‑core producing assets in eastern Alberta for gross proceeds of $112.0 million.
• The transaction also involved the assumption of undiscounted asset retirement obligations of $63 million, effectively reducing net cash received to about $49 million.
• Proceeds are being used first to reduce net debt, with remaining flexibility to fund shareholder returns (dividends, share buybacks) or accelerate development in its core Clearwater and Charlie Lake assets; the 2026 budget will be released in late‑2025.

Key Details

• Transaction: Sale of non‑core assets located in the Veteran Consort and Eyehill areas, eastern Alberta.
• Gross Proceeds: $112.0 million (before closing adjustments).
• Asset Retirement Obligations Assumed: $63 million (approximately 50 % of the gross proceeds).
• Net Cash Impact: Roughly $49 million available after accounting for retirement obligations.
• Strategic Outcome: Completes Tamarack’s transformation into a pure‑play operator focused on Clearwater heavy‑oil and Charlie Lake light‑oil projects.
• Use of Proceeds:
• Primary: Reduction of net debt to improve balance‑sheet flexibility.
• Secondary (optional): Potential increase in shareholder returns (dividends, common share buybacks) or acceleration of development programs, notably expanded water‑flood initiatives at Clearwater.
• Future Planning: Tamarack intends to release its 2026 budget in late 2025, leveraging the stronger financial position created by this divestiture.

Notable Quotes

(No direct quotes were provided in the release.)