Tamarack Valley Energy Ltd.

Good morning, welcome everyone to the Tarmac Valley Energy Limited Conference Call on Thursday, May 7, 2025, discussing the recent Q1 2025 results press release. I would like to introduce today's speakers, Mr. Ryan Smith, President and Chief Executive Officer, and Mr. Steve Vitals, Chief Financial Officer. 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 your conference.

Good morning, and thank you, Sergio. Welcome to everyone on the call to discuss our first quarter operating and financial results. My name is Brian Schmidt. I'm President and CEO of Tamarack Valley, and I'm joined here today with Steve Baitels, our CFO. This morning, there are five key Q1 result areas which I'd like to highlight. Number one, the success we are seeing in the Clearwater, including in the strength in our base volumes and Charlie Lake production. Number two, the advancement of our water flood development and planned expansion of the program. Number three, a highly efficient and nimble 2025 capital program, which is delivering higher production while observing material cost savings. Number four, our continued operating efficiencies and lowering of costs that are generating further value in our business. And number five, the progress are our shareholder returns with increased share buyback activity. Operationally, we had many successes in the first quarter. Production averaged 67,697 BOEs a day, up 9% from Q1 24. Our total oil and liquids of 57,594 DOE per day represented the highest in the company's history in terms of liquids production. Thirdly, our Tamarack achieved production growth year over year of 15% in the Clearwater and 9% in the Charley Lake. The Charley Lake production results reflect acceleration within the 2025 plan with 10 wells coming on stream in Q1 2025. In the Clearwater, we increased water injection rates to over 15,000 barrels a day during the quarter. Looking ahead, we expect to double that rate to approximately 30,000 barrels a day of water injection exiting 2025. With incremental oil rates being correlated to the rate of injection, we expect this will support further decline mitigation, which is resulting in lower sustaining capital requirements year on year as our programs continue to gain efficiencies. We are excited by the strength of our water flood response and the prospects which exist across our asset base. In Martin Hills and Nipissi, we've observed multiple patterns where production after the initiation of water injection is exceeding the primary baseline rates. This performance supports our expectation for incremental well recoveries in the two to three times primary recovery where water flow capital will pay out more than seven times. These results are driving growth in free funds flow and reductions in our sustaining capital requirements. I'll turn it over to Steve to expand on the financial results and the outlook as we move through 2025.