Mr. Anthony Marino reports

TENAZ ENERGY CORP. ANNOUNCES 2024 BUDGET AND GUIDANCE

Tenaz Energy Corp. has released its 2024 budget and guidance. The company's board of directors has approved a drilling and development capital (D&D capex) budget of $23-million to $25-million for 2024. The company also intends to invest $3-million in exploration and evaluation capital (E&E capex) to evaluate a potential CCS (carbon capture and storage) project in the Dutch North Sea.

Production guidance for 2024 is 2,700 to 2,900 barrels of oil equivalent per day, reflecting growth of approximately 17 per cent from 2023. The company's 2024 program is designed to continue ratable organic growth while generating free cash flow. At the same time as it delivers organic growth, the company is advancing its acquisition pipeline toward fruition.

Capital and production guidance

The company's planned D&D capex program envisions a four-well (3.5 net) drilling program in the Rex formation at Leduc-Woodbend. Drilling timing is consistent with the company's previous seasonal approach, commencing around midyear after the end of the rainy season in Alberta. The new wells are expected to be completed, equipped and tied in for production at the beginning of Q4 2024. The company's Canadian development program is flexible, with several options to scale the program up or down depending on the commodity environment and opportunities to employ capital outside of Canada. The company has also identified development zones beyond the Rex formation, including within the Glauconite and Sparky formations.

In its non-operated Dutch North Sea assets, the company expects to employ D&D capex for minor production-adding activities on existing wells, continued studies at the F17 oil development project and investment in facility-enhancing capital.

The company's annual production guidance for 2024 is 2,700 to 2,900 barrels of oil equivalent per day, approximately 17 per cent higher than 2023. Its 2024 production guidance reflects continuing growth at Leduc-Woodbend and a flat production profile for its Dutch North Sea assets.

L10 CCS project

Neptune Energy, as project operator, and its partners have agreed to progress the L10 CCS project from the concept select phase into the front-end engineering and design (FEED) phase. At the end of the FEED phase in 2025, the company expects the project partners to be positioned for a final investment decision (FID). L10 CCS seeks to store five million tonnes of carbon dioxide annually, which would make a significant contribution toward carbon neutrality in northwest Europe.

All partners have executed a front-end engineering and design co-operation agreement, and Neptune has contracted for engineering and design services. Expenditures to progress through FEED are expected to be approximately $3-million in 2024. FEED capital investment is classified as E&E capex because an FID has not yet been determined.

About Tenaz Energy Corp.

Tenaz is an energy company focused on the acquisition and sustainable development of international oil and gas assets capable of generating free cash flow for shareholders. Tenaz has domestic operations in Canada, along with offshore natural gas assets in the Netherlands. The domestic operations consist of a semi-conventional oil project in the Rex member of the Upper Mannville group at Leduc-Woodbend in central Alberta. The Netherlands natural gas assets are located in the Dutch sector of the North Sea.

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