Tamarack has now successfully consolidated working interests and operatorship in the Southern Clearwater to 100%, as a result of the Acquisition. The acquired assets are forecasted to produce ~2,100 bbl/d(1) average for the remainder of 2022 and deliver ~$65 million of annualized operating field netback(2),(3). Tamarack expects to realize synergies in gas conservation and other infrastructure projects already in the planning phase, lowering the GHG intensity of the assets.
As previously announced, and in conjunction with the closing of the Acquisition, Tamarack has increased its base monthly dividend by 20% to $0.01 per month beginning with the June declaration with an expected payment date of July 15, 2022. The increase in Tamarack’s monthly cash dividend reflects the improvement in sustainable free funds flow(2) per share the Company has generated both organically and through the strategic Crestwynd and Rolling Hills acquisitions which drive accretion at flat pricing of US$55/bbl WTI and $2.50/GJ AECO.
Tamarack is also pleased to announce that its existing sustainability-linked lending facility (“SLL Facility”) has been extended to May 31, 2024. The SLL Facility syndicate also provided a modest increase to $650 million on the revolving facility, to account for some of the additional value added through the Acquisition.
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, Clearwater and EOR plays in Alberta. Operating as a responsible corporate citizen is a key focus to ensure we deliver on our environmental, social and governance (ESG) commitments and goals. For more information, please visit the Company’s website at www.tamarackvalley.ca.
AECO |
the natural gas storage facility located at Suffield, Alberta connected to TC Energy’s Alberta System |
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bbls/d |
barrels per day |
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IFRS |
International Financial Reporting Standards as issued by the International Accounting Standards Board |
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WCS |
Western Canadian Select, the benchmark for conventional heavy and oil sands blended crude oil in western Canada |
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WTI |
West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma for the crude oil standard grade |
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