Tamarack Valley Energy (TVE) EnerCom Denver – The Energy Investment Conference summary

Strategic transformation and asset focus

• Transitioned to a pure-play Clearwater producer after divesting Charlie Lake assets, resulting in a debt-free balance sheet and significant cash reserves.

• Clearwater production now represents the core business, with 53.5–55 thousand bbl/day targeted and a 15% quarter-over-quarter growth in Q2.

• Divestment proceeds of CAD 804 million were reinvested to accelerate Clearwater development, boosting capital spend by CAD 75 million.

• Operating costs have dropped to CAD 7/bbl, supporting robust margins even at low oil prices.

• Share repurchases since 2023 have reduced outstanding shares by 15%, with significant value creation as share price more than doubled.

Operational performance and resource potential

• Holds 12 billion barrels of oil in place in Clearwater, with only 2% expected to be produced over the next five years, providing 25 years of drilling inventory.

• Achieved a 6.6x recycle ratio and maintains a low unhedged breakeven of CAD 38/bbl.

• Sustaining capital requirements have halved since 2023, now at CAD 200 million, enabling simultaneous growth and decline mitigation.

• Decline rates have dropped from 35% to 18% due to waterflooding and operational improvements.

• Five-year capital budget set at CAD 400–450 million, supporting continued production growth and inventory expansion.

Waterflood success and technical advancements

• Waterflooding has significantly increased production, with wells responding with up to 47% higher output and corporate production up 24% from last year’s waterflood investments.

• Waterflooded reserves now account for 40% of total TPP reserves, with associated reserves growing over 200% year-on-year.

• Technical revisions to reserves reached 41% last year, reflecting ongoing upward adjustments as waterflood performance exceeds expectations.

• Water injection rates are ramping up, with plans to exit the year at 70,000 bbl/day injected, still only a fraction of the potential.

• F&D costs for waterflood conversions are as low as CAD 1/bbl, supporting high paybacks of up to 25x on half-cycle investments.