Tamarack Valley Energy Ltd. ("Tamarack" or the "Company") (TSX: TVE) is pleased to announce its financial and operating results for the three, and six months ended June 30, 2025. Selected financial and operating information should be read with Tamarack's unaudited consolidated financial statements and related management's discussion and analysis ("MD&A") for the three, and six months ended June 30, 2025, which are available on SEDAR+ at www.sedarplus.ca and on Tamarack's website at www.tamarackvalley.ca

Production achieved another record high in Q2/25, averaging 70,260 boe/d(1) and representing a 19% YoY increase on a per share basis. This, combined with improved costs and capital efficiencies, drove strong free funds flow ("FFF")(2) generation. In conjunction with share buybacks, Tamarack is compounding per share value creation for shareholders.

Overall program success continues to drive production higher with capital trending lower resulting in a positive update to Tamarack's corporate guidance. Reflecting improved efficiencies, full year 2025 production guidance is increased by 3% to 67,000 â?? 69,000 boe/d(3) and capital spending is reduced by 7%. At the same time, strength in funds flow is supported by lower net production and interest expenses with guidance demonstrating savings of 5% and 6% respectively.

Q2 2025 Financial and Operational Highlights

Q2 2025 Financial & Operating Results

2025 Guidance Update

Reflecting core asset performance, along with net acquisition and divestiture ("A&D") activities, Tamarack's 2025 guidance is revised upward. Full-year production guidance range is increased by 3%, to 67,000 - 69,000 boe/d(3) which includes previously disclosed planned turnarounds during Q3/25. The third-party CSV Albright gas processing facility is in the final stages of commissioning, and it is anticipated that start-up is imminent. Tamarack has completed all work required to send gas volumes to the new CSV Albright facility which is expected to improve the Company's field egress capacity from Charlie Lake and support ongoing development of the assets.

Ongoing capital efficiency gains from expanded multi-well-pad development and waterflood outperformance have resulted in capital investment guidance improving by 7% for 2025, which includes the expanded Clearwater waterflood investment previously announced. Strong execution of the 2025 capital program, together with net A&D activity, has Tamarack on track to achieve its $500MM net debt(2) target in 2027.

Net 2025 production expense per boe guidance is reduced by 5%, reflecting continued improvements to lifting costs and higher production. Net production expense also reflects the H1/25 disposition of non-core assets, which carried higher relative per boe costs vs. Tamarack's corporate average on retained assets. Transportation expense guidance was narrowed for the full year reflecting the ongoing impact of infrastructure investments and reduced trucking activities. The Company has reduced interest expense guidance by 6% for 2025 owing to lower variable interest rates and overall lower net debt.

The Company's updated 2025 guidance is summarized in the table below.

Operations Update

Clearwater

Clearwater production increased by 16% YoY to average 46,486 boe/d(11) (91% oil & liquids) in Q2/25, reflecting success of our development program and continued strong response from ongoing expansion of the waterflood program. Through Q2/25, Tamarack drilled 13 Clearwater injection wells and converted five wells to injection. In H2/25, Tamarack plans to drill 45 primary wells, nine injectors and to convert an additional 10 wells to injection. This will support plans to grow water injection to >30,000 bbl/d by the end of the year, representing a 200% YoY increase.

Clearwater waterflood response across our acreage continues to outperform with total heavy oil uplift from waterflood now exceeding 3,750 bbl/d, representing ~9% of Q2/25 Clearwater heavy oil production. Recently, Tamarack's 15-02-075-25W4 and 16-02-075-25W4 Marten Hills patterns have shown strong incremental response and are currently producing at >725 bbl/d and >750 bbl/d respectively. This represents an uplift of >1,300 bbl/d compared to the combined primary baseline of ~80 bbl/d from only two waterflood patterns. In June, after 6.5 years on-stream, these patterns ranked as the top two Clearwater multi-lateral producers of the month, underscoring the robust potential of the Clearwater waterflood. The Company plans to convert an additional three injectors offsetting the Marten Hills patterns in H2/25 as part of the ten well injector conversion program. Tamarack's 102/01-11-074-25W4 W-pattern also continues to outperform expectations and is now producing at more than 250 bbl/d above its primary baseline of 75 bbl/d.

Charlie Lake

Tamarack's Charlie Lake assets, situated within the Peace River Arch fairway, delivered average production of 18,940 boe/d(12) (68% oil & liquids) for the quarter, demonstrating growth of 7% vs. Q1/25. This represents the asset's highest quarterly production to date and a YoY increase of 1,040 boe/d(13), made possible by strong results from the 12 (10.8 net) horizontal Charlie Lake wells brought onstream throughout Q1/25.

Tamarack is prepared to commence delivery of gas to the CSV Albright plant in support of the imminent start-up and ramping up of operations at that facility by the third-party operator. Given delays experienced with this facility start-up year-to-date, temporary alternate egress arrangements remain in place, and the 2025 average Charlie Lake production outlook remains unchanged. The Company resumed drilling activities in early July, with plans to run a continuous one rig program for H2/25, after pausing activity for break up in Q2/25.

Charlie Lake production is expected to moderate through the balance of the year with capital largely focused on Clearwater development. Tamarack retains significant capital allocation optionality with respect to the Charlie Lake, having now secured sufficient processing and egress capacity to support ongoing operations while also facilitating potential additional growth across the region.

Strategic Clearwater Acquisition 

Tamarack acquired all issued and outstanding shares of PrivateCo for cash consideration of $51.5MM, on July 29, 2025. The acquisition will add 1,100 bbl/d of Clearwater heavy oil production through the balance of the year. The synergistic tuck-in enhances Tamarack's contiguous footprint within the Clearwater fairway, increasing Clearwater land holdings by >114 net sections or 17%(14), while consolidating joint interests partner lands offering both full cycle development cost and capital synergies. Tamarack now holds a 100% working interest ownership and operatorship across its Nipisi position. This acreage adds proven stacked Clearwater inventory, increased resource capture with waterflood upside, along with step-out and exploration opportunities at West Nipisi.

Executive Appointment

Tamarack is pleased to announce that Mr. Steve Buytels is promoted to President and Chief Financial Officer. Since joining the Company in 2020, Mr. Buytels has been a key contributor to Tamarack's transformation to a highly profitable company with dominant positions in two of North America's top oil and gas plays. We look forward to ongoing success under his continued guidance moving forward. As Tamarack's founder, Mr. Schmidt will continue as the Chief Executive Officer, which is consistent with the Board's succession planning to insure predictable and consistent corporate performance. 

Risk Management

The Company takes a systematic approach to managing commodity price risk and volatility to ensure sustaining capital, debt servicing requirements and the base dividend are protected through a prudent hedging management program. For the remainder of 2025, approximately ~49% of net after royalty oil production is hedged against WTI with an average floor price of ~US$57/bbl with structures that allow for upside price participation averaging ~US$79/bbl. Our strategy provides protection to the downside while retaining upside exposure. Additional details of the current hedges in place can be found in the corporate presentation on the Company website (www.tamarackvalley.ca).

We would like to thank our employees, shareholders and other stakeholders for their ongoing support. Tamarack continues to execute its five-year plan, with success and results driven by the dedication and hard work of our employees. We look forward to continuing to develop our high-quality assets to create long-term, sustainable shareholder value.

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 and Clearwater plays in Alberta while also pursuing EOR upside in these core areas. For more information, please visit the Company's website at www.tamarackvalley.ca.

Abbreviations

Notes to Press Release

Reader Advisories

Notes to Press Release

Disclosure of Oil and Gas Information

Unit Cost Calculation. For the purpose of calculating unit costs, natural gas volumes have been converted to a boe using six thousand cubic feet equal to one barrel unless otherwise stated. A boe conversion ratio of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion conforms with Canadian Securities Administrators' National Instrument 51 101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Boe may be misleading, particularly if used in isolation.

Product Types. References in this press release to "crude oil" or "oil" refers to light, medium and heavy crude oil product types as defined by NI 51-101. References to "NGL" throughout this press release comprise pentane, butane, propane, and ethane, being all NGL as defined by NI 51-101. References to "natural gas" throughout this press release refers to conventional natural gas as defined by NI 51-101.

Forward Looking Information

This news release contains certain forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as "guidance", "outlook", "anticipate", "target", "plan", "continue", "intend", "consider", "estimate", "expect", "may", "will", "should", "could" or similar words suggesting future outcomes. More particularly, this news release contains statements concerning: Tamarack's business strategy, objectives, strength and focus; the Company's exploration and development plans and strategies; the corporate acquisition of a private company (the "PrivateCo"), including anticipated benefits and strategic rationale; dividends, share buybacks and debt reduction; the revised 2025 budget, outlook and guidance, including Tamarack's continued capital flexibility under its 2025 capital program; anticipated operational results for the remainder of 2025 including, but not limited to, estimated or anticipated production levels, capital expenditures, drilling and conversion plans and infrastructure initiatives and anticipated margin improvements; the new CSV Albright sour gas plant in the Charlie Lake, including expectations regarding improved field egress capacity; expectations regarding commodity prices; the performance characteristics of the Company's oil and natural gas properties; EOR, including the acceleration of waterflood initiatives and decline mitigation; the ability of the Company to achieve drilling success consistent with management's expectations; risk management activities, including hedging positions and targets; and the source of funding for the Company's activities, including development costs. Future dividend payments and share buybacks, if any, and the level thereof, are uncertain, as the Company's return of capital framework and the funds available for such activities from time to time is dependent upon, among other things, free funds flow financial requirements for the Company's operations and the execution of its growth strategy, fluctuations in working capital and the timing and amount of capital expenditures, debt service requirements and other factors beyond the Company's control. Further, the ability of Tamarack to pay dividends and buyback shares will be subject to applicable laws (including the satisfaction of the solvency test contained in applicable corporate legislation) and contractual restrictions contained in the instruments governing its indebtedness, including its credit facility.

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Tamarack, including those relating to: the business plan of Tamarack; the assets acquired pursuant to the Acquisition; the timing of and success of future drilling, conversion, development and completion activities; the geological characteristics of Tamarack's properties; prevailing commodity prices, price volatility, price differentials and the actual prices received for the Company's products; the availability and performance of drilling rigs, facilities, pipelines and other oilfield services; the timing of past operations and activities in the planned areas of focus; the performance of new and existing wells; the application of existing drilling and fracturing techniques; the Company's ability to secure sufficient amounts of water; prevailing weather and break-up conditions; royalty regimes and exchange rates; impact of inflation on costs; the application of regulatory and licensing requirements; the continued availability of capital and skilled personnel; the ability to maintain or grow the banking facilities; the accuracy of Tamarack's geological interpretation of its drilling and land opportunities, including the ability of seismic activity to enhance such interpretation; and Tamarack's ability to execute its plans and strategies.

Although management considers these assumptions to be reasonable based on information currently available, undue reliance should not be placed on the forward-looking statements because Tamarack can give no assurances that they may prove to be correct. By their very nature, forward-looking statements are subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: risks with respect to unplanned third party pipeline outages and risks relating to inclement and severe weather events and natural disasters, such as fire, drought and flooding, including in respect of safety, asset integrity and shutting-in production; the risk that future dividend payments thereunder are reduced, suspended or cancelled; incorrect assessments of the value of benefits to be obtained from exploration and development programs; risks associated with the oil and gas industry in general (e.g. operational risks in development, exploration and production; and delays or changes in plans with respect to exploration or development projects or capital expenditures); the risk that (i) ongoing negotiations between the U.S. and Canadian governments are not successful and one or both of such governments maintain tariffs, increase the rate or scope of tariffs, or impose new tariffs on the import of goods from one country to the other, including on oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the tariffs imposed by the U.S. on other countries and responses thereto could have a material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Company; commodity prices, including the impact of the actions of OPEC and OPEC+ members; the uncertainty of estimates and projections relating to production, cash generation, costs and expenses, including increased operating and capital costs due to inflationary pressures; health, safety, litigation and environmental risks; access to capital; and pandemics. In addition, ongoing military actions in the Middle East and between Russia and Ukraine have the potential to threaten the supply of oil and gas from those regions. The long-term impacts of the actions between these nations remains uncertain. Due to the nature of the oil and natural gas industry, drilling plans and operational activities may be delayed or modified to respond to market conditions, results of past operations, regulatory approvals or availability of services causing results to be delayed. Please refer to the most recent annual information form of the Company and the MD&A, for additional risk factors relating to Tamarack, which can be accessed either on Tamarack's website at www.tamarackvalley.ca or under the Company's profile on www.sedarplus.ca. The forward-looking statements contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

This news release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about generating sustainable long-term growth in free funds flow, dividends, share buybacks, debt reduction (including achieving $500MM net debt target in 2027), prospective results of operations and production (including annual average production, average oil & NGL weighting), hedging, operating costs, the revised 2025 capital guidance, 2025 annual budget and budget pricing, balance sheet strength, adjusted funds flow and free funds flow and components thereof, including pro forma the completion of the Acquisition, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Tamarack's future business operations. Tamarack and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Tamarack disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in Tamarack's revised guidance. The Company's actual results may differ materially from these estimates.

Specified Financial Measures

This press release includes various specified financial measures, including non-IFRS financial measures, non-IFRS financial ratios, capital management measures and supplemental financial measures as further described herein. These measures do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and, therefore, may not be comparable with the calculation of similar measures by other companies.

Please refer to the MD&A for additional information relating to specified financial measures including non-IFRS financial measures, non-IFRS financial ratios and capital management measures. The MD&A can be accessed either on Tamarack's website at www.tamarackvalley.ca or under the Company's profile on www.sedarplus.ca. 

SOURCE Tamarack Valley Energy Ltd.

SOURCE: Tamarack Valley Energy Ltd.

For additional information, please contact: Brian Schmidt, Chief Executive Officer,
Tamarack Valley Energy Ltd., Phone: 403.263.4440, www.tamarackvalley.ca; Steve
Buytels, President & Chief Financial Officer, Tamarack Valley Energy Ltd., Phone:
403.263.4440, www.tamarackvalley.ca; Christine Ezinga, VP Business Development &
Sustainability, Tamarack Valley Energy Ltd., Phone: 403.263.4440,
www.tamarackvalley.ca

COMTEX_467667543/2197/2025-07-30T05:30:00