CALGARY, AB – Tamarack Valley Energy Ltd. (“Tamarack” or the “Company“) is pleased to announce the Toronto Stock Exchange (the “TSX”) has approved the Company’s application for a normal course issuer bid (the “NCIB”).
The NCIB allows Tamarack to purchase up to 20,354,360 common shares (“Common Shares”) of the Company (representing approximately 5% of the 407,087,206 outstanding Common Shares as of October 25, 2021) over a period of twelve months commencing on November 3, 2021. The NCIB will expire no later than November 2, 2022. The actual number of Common Shares which may be purchased pursuant to the NCIB will be determined by management of the Company. Any Common Shares that are purchased under the NCIB will be cancelled upon their purchase by Tamarack.
Under the NCIB, Common Shares may be repurchased in open market transactions on the TSX and alternative Canadian trading systems, or by such other means as may be permitted by the TSX and applicable securities laws and in accordance with the rules of the TSX governing NCIBs. The price which the Company will pay for any such Common Shares will be the prevailing market price at the time of purchase.
The total number of Common Shares the Company is permitted to purchase is subject to a daily purchase limit of 667,450 Common Shares, representing 25% of the average daily trading volume of 2,669,801 Common Shares on the TSX calculated for the six-month period ended September 30, 2021. Notwithstanding the daily purchase limit, Tamarack may make one block purchase per calendar week which exceeds the daily repurchase restrictions.
The NCIB will provide an additional tool for the reinvestment of excess free funds flow(1) to increase long-term total shareholder returns. Tamarack believes that at times, the prevailing share price does not reflect the underlying value of the Common Shares and the repurchase of Common Shares represents an opportunity to improve per share metrics. As with all expenditures, Tamarack will remain vigilant in ensuring it retains flexibility and liquidity on its balance sheet.