Tamarack Valley Energy Announces Strong Q2 Results, Provides Operational Update, Declares Enhanced Q3 Dividend and Makes Executive Appointment

CALGARY, AB, July 28, 2026 /CNW/ -- Tamarack Valley Energy Ltd. is pleased to announce its financial and operating results for the three and six months ended June 30, 2026. Selected financial and operating information should be read with Tamarack's unaudited consolidated interim financial statements and management's discussion and analysis for the three and six months ended June 30, 2026, which are available at www.sedarplus.ca and www.tamarackvalley.ca.

Tamarack delivered strong second quarter Clearwater production, operating results and cash flows driven by robust operational execution and elevated commodity prices. Following the sale of the Company's Charlie Lake assets on June 15, 2026, Tamarack is now a pure-play Clearwater producer with run-rate production of >54,000 boe per day (92% liquids), net cash⁽¹⁾ of $132.6 million and available funding⁽¹⁾ of $1.3 billion. The divestment has provided the Company with greater capital allocation flexibility to drive higher total shareholder returns across commodity price cycles through a combination of accelerated development of the Clearwater's high-margin, long-duration inventory and enhanced returns via share buybacks and the base dividend.

Q2 2026 Operational and Financial Highlights

• Production – In the second quarter, Tamarack's Clearwater assets delivered 53,598 boe per day, reflecting a 15% increase over Q2 2025. Corporate production averaged 69,229 boe per day in Q2 2026, with Clearwater production growth offset by the sale of the Charlie Lake assets on June 15, 2026 (~18,000 boe per day) and other non-core assets in 2025.
• Record cash flows – In the second quarter of 2026, Tamarack delivered record cash flows, with cash provided by operating activities of $313.3 million, adjusted funds flow⁽¹⁾ of $255.1 million and free funds flow⁽¹⁾ of $154.8 million, or $0.32 per diluted share. Year to date, Tamarack delivered free funds flow⁽¹⁾ of $282.9 million ($0.58 per diluted share).
• Capital investments – Tamarack invested $98.7 million in the second quarter. Capital investment in Q2 was focused on Clearwater primary development and waterflood expansion activities, with the Company drilling 18.0 net Clearwater heavy oil production wells and 18.0 net injection and water source wells.
• Shareholder returns – In Q2, Tamarack repurchased 6.6 million common shares, or 1.4% of the common share float, for a total cost of $80.3 million under its share buyback program. Together with base dividends, Tamarack returned $165.8 million to shareholders in the first half of 2026. In conjunction with the Charlie Lake divestiture, Tamarack also announced a 25% increase to its base dividend ($0.20/share annualized) beginning in the third quarter of 2026.
• Portfolio optimization – In Q2, Tamarack completed the sale of its Charlie Lake assets for cash consideration of $803.8 million, before closing adjustments. Net proceeds from the divestiture were initially utilized to eliminate net debt⁽¹⁾ and will support additional primary and secondary development activities across Tamarack's Clearwater fairway, driving accelerated production growth and returns.
• Liquidity – In Q2, Tamarack redeemed its remaining 2027 Notes and extended the Credit Facility maturity date to 2030. Tamarack exited the second quarter with net cash⁽¹⁾ of $132.6 million and available funding⁽¹⁾ of $1.3 billion, including cash on hand of $508.3 million and an undrawn credit capacity of $875.0 million.

Q2 2026 Operational and Financial Highlights

($ thousands, except per share amounts)	Three months ended			Six months ended
June 30	2026	2025	% change	2026	2025		% change
Oil and natural gas sales	$    603,791	$    408,267	48	$   1,407,730	$    852,555		23
Cash provided by operating activities	313,292	189,579	65	496,628	377,132		32
Per share – basic	0.66	0.38	74	1.03	0.74		39
Per share – diluted	0.65	0.37	76	1.02	0.73		40
Adjusted funds flow^(1)	255,050	197,037	29	476,828	423,183		13
Per share – basic	0.53	0.39	36	0.99	0.83		19
Per share – diluted	0.53	0.39	36	0.98	0.82		20
Free funds flow^(1)	154,780	133,114	16	282,890	223,807		26
Per share – basic	0.32	0.26	23	0.59	0.44		34
Per share – diluted	0.32	0.26	23	0.58	0.44		32
Net income	205,676	86,237	139	211,321	150,495		40
Per share – basic	0.43	0.17	153	0.44	0.30		47
Per share – diluted	0.43	0.17	153	0.43	0.29		48
Dividends	19,164	19,233	-	38,475	38,799		(1)
NCIB repurchases	80,335	41,803	92	127,365	98,133		30
($ thousands, except per share amounts)	Three months ended			Six months ended
June 30	2026	2025	% change	2026	2025	% change
Debt	319,589	717,395	(55)	319,589	717,395	(55)
Net (cash) debt^(1)	(132,634)	711,132	(119)	(132,634)	711,132	(119)
Available funding^(1)	1,338,590	468,312	186	1,338,590	468,312	186
Investments in oil and natural gas assets	98,724	63,166	56	192,177	195,897	(2)
Weighted average shares outstanding
Basic	478,193	503,447	(5)	481,093	509,346	(6)
Diluted	482,750	508,268	(5)	486,479	514,244	(5)
Average daily production
Heavy oil (bbls/d)	49,291	42,004	17	48,817	41,198	18
Light oil (bbls/d)	8,757	14,149	(38)	9,464	14,177	(33)
NGL (bbls/d)	2,157	3,120	(31)	2,327	3,064	(24)
Natural gas (mcf/d)	54,142	65,922	(18)	57,992	63,284	(8)
Total (boe/d)	69,229	70,260	(1)	70,273	68,986	2
Average sale prices
Heavy oil ($/bbl)	$          106.81	$           73.58	45	$           92.34	$           78.19	18
Light oil ($/bbl)	134.63	82.76	63	113.53	87.75	29
NGL ($/bbl)	44.38	29.97	48	40.60	32.49	25
Natural gas ($/mcf)	1.77	2.00	(12)	1.93	2.30	(16)
Total ($/boe)	95.84	63.85	50	82.37	68.28	21
Benchmark pricing
West Texas Intermediate (US$/bbl)	92.79	63.74	46	82.36	67.58	22
Western Canadian Select (WCS) (C$/bbl)	108.04	73.96	46	93.63	79.13	18
WCS differential (US$/bbl)	14.61	10.27	42	14.39	11.47	25
Edmonton Par (Cdn$/bbl)	132.27	84.25	57	112.88	89.79	26
Edmonton Par differential (US$/bbl)	(2.90)	2.84	nm	0.43	3.91	(89)
Foreign Exchange (USD to CAD)	1.38	1.38	-	1.38	1.41	(2)
Operating netback ($/boe)
Oil and natural gas sales	95.84	63.85	50	82.37	68.28	21
Royalty expenses	(19.91)	(12.15)	64	(15.50)	(13.11)	18
Net operating expenses^(1)	(6.96)	(8.01)	(13)	(7.15)	(7.89)	(9)
Transportation expenses	(3.83)	(3.54)	8	(3.76)	(3.61)	4
Operating field netback ($/boe)^(1)	65.14	40.15	62	55.96	43.67	28
Realized commodity hedging gain (loss)	(8.65)	0.11	nm	(5.33)	(0.79)	nm
Operating netback ($/boe)^(1)	$            56.49	$           40.26	40	$           50.63	$           42.88	18
Adjusted funds flow ($/boe)^(1)	$            40.48	$           30.82	31	$           37.49	$           33.89	11

2026 Outlook ⁽³⁾ & Clearwater Update

For the year ended December 31, 2026				Original guidance (December 2025)	Revised guidance (June 2026)
Capital investments ($ millions)
Clearwater and other					385 - 405
H1 2026 Charlie Lake					45
Base 2026 capital investment budget				390 - 410	430 - 450
Production^(2) (boe/d)
Clearwater					53,500 - 55,000
H1 2026 Charlie Lake					8,000
Annual average production				69,000 - 71,000	61,500 - 63,000
Selected operating metrics
Average oil & NGL weighting (%)				84 - 86	88 - 90
Royalty rate (%)				19 - 21	20 - 22
Corporate wellhead price differential – Oil^(4) ($/bbl)				1.00 - 1.50	0.75 - 1.25
Net operating expense^(1) ($/boe)				6.85 - 7.15	6.65 - 6.90
Transportation ($/boe)				4.00 - 4.50	4.00 - 4.50
Interest ($/boe)				2.70 - 3.10	2.00 - 2.40
General and administrative ($/boe)				1.30 - 1.45	1.40 - 1.55
Income taxes (% of adjusted funds flow^(1) before tax)				10 - 12	17 - 19

Tamarack's Clearwater assets delivered average production of 53,598 boe per day in Q2 2026, compared to 46,486 boe per day in Q2 2025, reflecting the ongoing success of primary development drilling and waterflood expansion. Tamarack expects Clearwater production to average 53,500 - 55,000 boe per day for the full year, reflecting a ~15% increase year-over-year.

In conjunction with the Charlie Lake divestiture, Tamarack expanded its 2026 capital program in the Clearwater fairway by ~$75 million, with 40% of the expansion dedicated towards waterflood investment. The Company remains nimble with an ability to redeploy capital towards the highest return opportunities in the Company's portfolio. By allocating more growth capital into the higher-margin Clearwater barrels, together with an elevated commodity price environment, Tamarack expects to generate higher cash returns on invested capital.

Tamarack is observing prolific waterflood response to date in 2026 from patterns on injection prior to the start of the year. In Marten Hills, the production under waterflood is back to ~88% of the historical primary peak from more than five years ago and continues to trend higher. The waterflood uplift in this area is now over 3,600 bbl per day of oil, which translates to ~200 bbl per day per injector. In West Marten, waterflood response is establishing new production highs well beyond historical primary production peaks in both the B and C sands. Strong, consistent results from these two areas have provided confidence in the additional capital allocated to waterflood in 2026.

The Company is currently injecting ~45,000 bbl per day of water which is expected to grow to 50,000 bbl per day in early August. Tamarack is reaffirming its 2026 exit water injection guidance of 70,000 bbl per day, a 16% increase over the original budget, and expects to have over 38% of Clearwater oil production under waterflood by the end of the year. Response from the waterflood continues to grow, with total oil uplift now estimated to be greater than 8,500 bbl per day, or 16% of Tamarack's Q2 Clearwater production.

In additional to development activities across the Company's core areas, Tamarack's H2 drilling program includes Clearwater and Wabiskaw delineation targets in the Pelican area as the Company continues to pursue incremental value to its five-year plan. The Company is also progressing enhanced oil recovery pilots and planning at South Clearwater, Seal and Pelican. Waterflood continues to be the recovery technology of choice across the main Clearwater fairway, supported by strong production response and attractive economics. Targeted evaluation of alternative recovery technologies, including thermal, are being assessed on areas with differing fluid and reservoir parameters.

As the waterflood development continues to expand, Tamarack expects to further enhance recovery factors, reduce corporate decline rates, lower reinvestment rates and improve long-term capital efficiency. The Company believes its extensive drilling inventory, combined with continued waterflood expansion and exploration upside at Seal and Pelican Lake, provides decades of high-quality development runway.

Shareholder Returns & Dividend Declaration

The Company remains opportunistic with significant optionality and balance sheet strength to maximize total shareholder returns across commodity price cycles. In the near-term, the Company expects to continue executing a disciplined capital management strategy targeting a balanced allocation of Clearwater growth and enhanced shareholder returns in the form of dividends and share buybacks.

In the second quarter of 2026, the Company repurchased 6.6 million common shares at an average cost of $12.24 per share. Year to date, the Company has repurchased 2.3% of the common share float, or 11.1 million shares at a weighted average price of $11.19 per share. Since the commencement of the share buyback program in January 2024, the Company has now reduced the common share count by 14.6%, or 81.2 million common shares, at a weighted average cost of $5.39 per share.

In conjunction with the Charlie Lake divestiture, Tamarack previously announced a 25% increase to its quarterly dividend from $0.04 per share to $0.05 per share ($0.20 per share annualized), commencing in the third quarter of 2026. On July 27, 2026, Tamarack's Board of Directors declared the third quarter cash dividend of C$0.05 per share, payable on September 30, 2026, to shareholders of record at the close of business on September 15, 2026. This quarterly cash dividend has been declared in accordance with the Company's dividend policy and is designated as an eligible dividend for Canadian income tax purposes.

Executive Appointment

Tamarack is pleased to announce that Mr. Scott Shimek is promoted to Chief Operating Officer. Since joining the Company in 2021, Mr. Shimek has been a key contributor to the operational execution, growth and significant success experienced across the Company's asset base, most notably the prolific Clearwater play. Mr. Shimek has more than 20 years of oil and gas experience, integrating his diverse technical knowledge into his leadership role at Tamarack. Scott holds a Bachelor of Science in Mechanical Engineering from the University of Alberta and is a member of the Association of Professional Engineers and Geoscientists of Alberta. The Company looks forward to ongoing success under his continued leadership moving forward.

Investor Call

Tamarack will host a webcast at 9:30 AM MDT (11:30 AM EDT) on Tuesday, July 28, 2026, to discuss the Q2 2026 financial results. Participants can access the live webcast through links provided on the Company's website. An archive of the webcast will also be made available on the Company's website.

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. In 2026, Tamarack transitioned to become a pure-play Clearwater heavy oil producer, currently developing heavy oil positions at Nipisi, Marten Hills and South Clearwater. 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". For more information, visit www.tamarackvalley.ca.

Reader Advisories

Selected financial and operating information should be read with Tamarack's unaudited interim consolidated financial statements and related management's discussion and analysis for the period ended June 30, 2026, which are available on SEDAR+ at www.sedarplus.ca and on Tamarack's website at www.tamarackvalley.ca.

Notes to News Release

1. See "Specified Financial Measures".
2. See "Disclosure of Oil and Gas information".
3. 2026 annual guidance numbers are based on average pricing assumptions of: Crude Oil – WTI US$60.00/bbl, Crude Oil – MSW Differential $US(4.00)/bbl, Crude Oil – WCS Differential $US(12.75)/bbl, Natural Gas – AECO C$2.75/GJ, Foreign Exchange – USD/CAD 1.35.
4. Oil wellhead deductions for grade specific trading differential (ex CHV), blending requirements, quality differential, and pipeline tolls if Tamarack is not marketing (lease transactions).

Disclosure of Oil and Gas Information

Units of measurement

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 news 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 news release comprise pentane, butane, propane, and ethane, being all NGL as defined by NI 51-101. References to "natural gas" throughout this news release refers to conventional natural gas as defined by NI 51-101. Clearwater production volumes on a standalone total boe per day basis are comprised of approximately 91% heavy oil, 1% NGLs and 8% natural gas. The Charlie Lake production volumes referenced in this news release on a boe per day basis is comprised of approximately 55% light oil, 12% NGLs and 33% natural gas.

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 "budget", "guidance", "outlook", "anticipate", "target", "plan", "continue", "intend", "consider", "estimate", "expect", "may", "will", "should", "could" or similar words (including negatives or grammatical variations) 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; run-rate production of >54,000 boe per day (92% liquids); greater capital allocation flexibility to drive higher total shareholder returns across commodity price cycles; expectation of decades of high-quality development runway; allocating more growth capital into the higher-margin Clearwater barrels, together with an elevated commodity price environment, Tamarack expects to generate higher cash returns on invested capital; 2026 outlook and guidance; the timing, amount and allocation of the planned additional Clearwater capital investments by the Company and planned secondary waterflood recovery initiative; utilization of alternative recovery technologies, including thermal; waterflood injection exit rates; anticipated percentage of Clearwater oil production under waterflood; forecasted general and administrative expenses, income taxes and interest expense for 2026; executing a disciplined capital management strategy and payment of declared dividends.

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 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; execution of the Company's 2026 budget; the timing of and success of future drilling, conversion, development and completion activities; the timing, amount and performance of additional Clearwater capital investments and secondary waterflood recovery initiatives; the availability of cash on hand, available credit and future anticipated adjusted funds flow to fund planned capital development programs and future acquisitions, dividends or share buybacks; 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 realization of anticipated benefits of the Company's infrastructure, waterflood development program and recent acquisitions and divestitures; 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; that income taxes, general and administrative expenses or interest expenses to differ materially from the Company's expectations; the risk that the Company may not achieve anticipated water injection rates, anticipated Clearwater oil production or meet the capital investment guidance; the risk that cash on hand, available credit and anticipated adjusted funds flow will not be sufficient to fund the Company's planned capital programs and any future acquisitions, dividends and share buybacks; 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) the U.S. and Canadian 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; the risks related to the renegotiation of the United States-Mexico-Canada Agreement, resulting in changes to trade, tariff or market access terms that may adversely affect the Company; commodity prices, including the impact of the actions of OPEC and OPEC+ members; risks relating to reliance on third parties, 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 Iran and elsewhere 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 remain 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 and management's discussion and analysis of the Company, 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 statements, except as required by law. The forward-looking statements contained herein are 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 and debt reduction, the 2026 capital budget of $430 - 450 million, guidance and budget pricing and allocation, including prospective results of operations, production (including annual average production of 61,500 – 63,000 boe/day, average oil and natural gas weightings of 88 – 90% , free funds flow, operating costs (including net operating expenses in 2026), balance sheet strength, and components thereof, 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 commodity prices, differences in the timing and allocation of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in Tamarack's guidance. Actual results may differ materially from these estimates.

Specified Financial Measures

This news 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.

Net operating expenses (Non-IFRS Financial Measure and Non-IFRS Financial Ratio if calculated on a per boe basis) is calculated as operating expenses less processing income. Tamarack generates processing income from third parties that utilize excess capacity at Tamarack's facilities. If Tamarack has excess capacity at one of its facilities, the Company will seek to process third-party volumes as a means of offsetting a portion of the facility costs. Accordingly, net operating expenses allow Tamarack and others to assess the profitability of field operating results by including the associated income generated from plant operations.

Adjusted funds flow (capital management measure) is defined as cash provided by operating activities excluding asset retirement obligation expenditures, transaction costs and changes in non-cash working capital. Asset retirement obligation expenditures and transactions costs from business combinations both result from the Company's capital budgeting and strategic planning processes, which first considers available adjusted funds flow. Asset retirement obligation expenditures vary from period to period depending on capital programs, government regulations and the maturity of the Company's operating areas. By also excluding changes in non-cash working capital from cash provided by operating activities, the adjusted funds flow measure provides a meaningful metric for Tamarack and others by establishing a clear link between the Company's cash flows, income statement and operating netbacks by isolating the impact of changes in the timing between accrual and cash settlement dates, which can often be within management's control. Tamarack uses adjusted funds flow to assess the Company's financial performance and cash generated from operating activities.

Free funds flow (capital management measure) is defined as adjusted funds flow less investments in oil and natural gas assets (excluding acquisitions and dispositions) and the settlement of asset retirement obligations. Management utilizes free funds flow to assess how much cash was generated in excess of the Company's capital investment and asset retirement programs within the same period, which can be utilized to reduce debt, fund acquisitions or return capital.

Net (cash) debt (capital management measure) is calculated as the sum of the Company's debt, government loans and other, cash, accounts receivable, prepaid expenses and deposits, cross-currency swap liability (asset), assets held for sale (net), accounts payable and accrued liabilities. Tamarack and others utilize net debt to assess liquidity and balance sheet strength by aggregating the select financial assets and financial liabilities on the Company's balance sheet.

Available funding is calculated as the sum of undrawn credit capacity under the Company's credit facility and cash, accounts receivable, prepaid expenses and deposits, cross-currency swap liability (asset), assets held for sale (net), accounts payable and accrued liabilities. Tamarack and others utilize available funding to assess the amount of funds that could be available to the Company in the near term to fund capital management initiatives.

Operating netback equals total oil and natural gas sales, including realized gains and losses on commodity hedges, less royalties, net operating expenses and transportation expenses. Operating Field Netback equals total oil and natural gas sales, less royalties, net operating expenses and transportation expenses. These metrics can also be calculated on a per boe basis, which results in them being considered a non-IFRS financial ratio. Management considers operating netback and operating field netback important measures to evaluate performance by asset area by isolating the impact of corporate and other overhead related expenditures.

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

Abbreviations

bbl(s)	barrel(s)
bbls/d	barrels per day
boe	barrels of oil equivalent
boe/d	barrels of oil equivalent per day
NGL	natural gas liquids
WTI	West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma for the crude oil standard grade

SOURCE Tamarack Valley Energy Ltd.

For additional information, please contact: Brian Schmidt, Chief Executive Officer & Founder, Tamarack Valley Energy Ltd., Phone: [phone], www.tamarackvalley.ca; Steve Buytels, President, Tamarack Valley Energy Ltd., Phone: [phone], www.tamarackvalley.ca: Kevin Johnston, Chief Financial Officer, Tamarack Valley Energy Ltd., Phone: [phone], www.tamarackvalley.ca