Tamarack Valley Energy Ltd. Closes Previously Announced Sale of Non-core Assets in Eastern Alberta

TSX: TVE

CALGARY, AB, Oct. 15, 2025 /CNW/ - Tamarack Valley Energy Ltd. is pleased to announce it has successfully closed the previously announced sale of its non-core producing assets in the Veteran Consort and Eyehill areas of Eastern Alberta. Gross proceeds from the divestment were $112.0 million before closing adjustments and the assumption of undiscounted asset retirement obligations of $63 million (~50% inactive).

The Company has now successfully completed its transformation into a pure-play Clearwater and Charlie Lake operator. Over the past three years, Tamarack has divested a number of non-core assets following strategic acquisitions, creating a solid financial foundation for future development and growth of the Company's high-graded, top-tier assets. Tamarack continues to prioritize net debt reduction together with ongoing returns to shareholders in the form of dividends and common share buybacks under its return of capital framework. Proceeds from the divestiture are initially being utilized to reduce net debt providing the Company with future optionality to increase shareholder returns or accelerate ongoing development in the Clearwater, including expanded waterflood initiatives. Tamarack plans to release its 2026 budget in late 2025.

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 core 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". For more information, visit www.tamarackvalley.ca.

Reader Advisories

Forward Looking Information

This press 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 "anticipate", "target", "plan", "continue", "intend", "consider", "estimate", "expect", "may", "will", "should", "could" or similar words (including negatives and variations thereof) suggesting future outcomes. This press release contains forward-looking statements concerning: Tamarack's business strategy, objectives, strength and focus; the Company's intended use of proceeds of the divestment, including intentions to reduce net debt providing the Company with future optionality to increase shareholder returns or accelerate ongoing development in the Clearwater, including expanded waterflood initiatives; the Company's intentions to continue prioritizing net debt reductions together with ongoing shareholder returns; and the timing of 2026 budget announcement.

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 timing of and success of future drilling, development and completion activities; the geological characteristics of Tamarack's properties; the continued successful integration of acquired assets into Tamarack's operations; 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 drilling, completion and tie-in of wells being completed as planned; the performance of new and existing wells; the application of existing drilling and fracturing techniques; 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.

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: the risk that the Company utilize the proceeds from the divestment other than in the manners described in this press release; 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 and management discussion and analysis ("MD&A") 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 forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement

SOURCE Tamarack Valley Energy Ltd.

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