Tamarack Valley Energy Ltd.

Good morning. Welcome, everyone, to Tamarack Valley Energy Limited conference call and webcast on Wednesday, May 8, 2024. Discussing the recent Q1 2024 results press release, I would like to introduce today's speaker, Mr. Brian Schmidt, President and CEO, Mr. Steve Baitels, Vice President, Finance and CFO, Scott Schimmick, Vice President of Production and Operations. If you would like to ask a question, please press star, then the number one on your telephone keypad to join the queue. If you would like to withdraw your question, please press star two. Thank you. Mr. Schmidt, you may begin the conference.

Good morning, and thank you, Lester. Welcome, everyone, to the call to discuss our outstanding first quarter operating financial results. I'm joined today by Steve Vitel, CFO, and Scott Schimmick, Vice President, Operations. The first quarter of 24 was highly successful for Tamarac. It was our first full quarter of operating with the transformed asset base with over 90% of our production coming from our core Clearwater and Charter Lake assets. During the quarter, production averaged 62,022 BOE per day in line with our prior guidance range. With efforts focused on our core assets, we established a new high watermark in our Charter Lake light oil assets which averaged 16,800 BOE per day for the quarter and achieved a record high production of 18,500 BOE per day for the month of March. In the quarter, we initialized production of two Charity Lake wells that have record production, record 30-day oil production, the highest ever in the play. Looking to our heavy oil portfolio, we have seen significant year-over-year growth for our North Clearwater properties. where Q1-24 volumes of 18,600 barrels of oil per day represented a 41% increase over Q1-23. This result was clearly delivered to the drill bit. The success is highlighted by our recent wells of West Martin Hills, where the area sea sand production has increased over 1,800 barrels of oil per day, and the sea sand wells are demonstrated better than forecasted rates with a flatter production profile. Our Martin Hills Development Program realized cost savings of 10% on the latest 8-well pad drilled in Q1. This pad is currently cleaning up and had initial production of over 1,100 barrels of oil per day. On our self-cleared water assets, we are seeing positive results from the implementation of the fan design. This approach to drilling is strategic in this part of the play given the sands here are thinner and so it enables us to access more reservoir utilizing less capital wider spacing intervals, and accesses more reservoir. Ultimately, that translates into higher recoveries, improved capital efficiencies, lower costs, which drive higher economic returns. So far, we have brought on three wells in 2024 with IP30 rates in the 200 to 245 barrels of oil per day range, with another three wells currently in the process of cleaning up or finished drilling. The Clearwater Enhanced Recovery It continues to progress with our aligned with our expectations. At Nipissi, where injection is currently stable at 3000 barrels per day, we are seeing good initial response and have 18 injectors supporting 12 wells with further injection growth forecasted in the second half of the year. At Martin Hills, the company plans to initiate its first sea sand water flood pilot in the second half of 2024. to begin development of a stacked water flood potential in the area, exhibiting excellent primary production results to date. Finally, Tamarac's most prolific producer in Martin Hills, the 102-15-2-75-25 West 4, has now produced over 470,000 barrels of oil per day and has seen an increase in oil rate from 110 barrels of oil per day at the start of injection to more than 300 barrels of oil per day in early May. representing nearly a 300% increase. Looking ahead, we remain focused on our core assets. Our strategy includes continuing to increase oil weighting, reducing sustainable capital, sustaining capital requirements, and improving pricing margins, as well as implementing projects with multiple payouts. I'll now pass it on to Steve to run through the financial results as well as our outlook.

Thanks, Brian. Having delivered adjusted funds flow of $182 million during the quarter, which was a 15% year-over-year improvement, we were able to generate free funds flow of $53 million through disciplined capital phasing and strong pricing, all while achieving the solid operational performance as Brian just noted, with production coming in ahead of consensus estimates. Reflecting our emphasis on returning capital to shareholders during the quarter, we returned over $46 million in the form of cash dividends, and $25.6 million of share buybacks. This represented a combined return of capital value of approximately $0.08 per share. Looking forward at strip prices, we expect to reach the second tranche of our enhanced return framework in the second half of this year, where we would direct 50% of the quarterly excess funds flow to enhanced returns through buybacks. Our strong financial performance was driven by our increased oil weighting. We were at 86% in Q1-24 relative to 82% in Q1 of 2023. Higher realized price margins, where we have been able to leverage improved market access and lower wellhead deductions, which contribute directly to the bottom line. We also improved our production costs, which were lower on a per barrel basis by 10% year over year, and we expect that to continue to improve as we move through the year. Looking to the balance sheet during the quarter, we were able to repay both our deferred acquisition payment notes and term facility that had been utilized to fund the Delta Stream acquisition in 2022. Subsequent to the quarter, we extended our bank line at $875 million, And at the same time, we were able to add an uncommitted accordion feature providing the ability to access an incremental $125 million of secured debt. This ensures we maintain financial flexibility without incurring additional standby fees for capacity. I'm going to pass it over to Scott Schimmick for an update on our NIPC production.