Mr. Anthony Marino reports

TENAZ ENERGY CORP. ANNOUNCES 2025 GUIDANCE AND ORGANIZATIONAL UPDATE

Tenaz Energy Corp. has released its 2025 guidance, prior to the closing of the acquisition of NAM Offshore BV (NOBV). Tenaz will update its 2025 guidance reflecting additional investment and production from NOBV after closing, which is projected to occur at mid-year 2025 or earlier.

The company's board of directors has approved a drilling and development capital (D&D capex) budget of $30-million to $34-million. We also intend to invest approximately $1.7-million in exploration and evaluation capital (E&E capex) to evaluate the potential CCS project at L10 in the Dutch North Sea. Production guidance for 2025 is 2,900 to 3,100 boe/d (barrels of oil equivalent per day), reflecting growth of approximately 10 per cent from 2024.

Capital and production guidance

The company's planned D&D capex program envisions a three-(2.3-net)-well drilling program in the Glauconitic and Ellerslie formations at Leduc-Woodbend, using unstimulated horizontal wells. The company has a large number of additional development drilling opportunities in the Rex, Ellerslie, Glauconitic and Sparky formations, and has the flexibility to scale up activity during the year. The company's planned Canadian program prioritizes what it believes to be its most capital-efficient inventory while maintaining approximately 15-per-cent production growth at Leduc-Woodbend. D&D capex in Canada is budgeted to be $9-million to $11-million.

In the company's non-operated Dutch North Sea assets, it expects to invest in its share of minor production-adding activities on existing wells, facility maintenance and a development well in the L10-hub area. The L10 Malachite extended-reach development well (Tenaz working interest of 21.43 per cent) is expected to be drilled in the second half of 2025, with some timing uncertainty that may push this well into 2026. The L10 Malachite well targets a pool that was previously tested but not developed. Programmed total measured depth is 4,800 metres to reach a Rotliegend sand at a true vertical depth of 3,500 metres. The well is anticipated to be drilled from an existing platform and brought on line within existing infrastructure to the L10-hub for processing and delivery to the NGT system. Expected gross production rate is expected to be approximately 25 MMcf/d (million cubic feet per day), with first production in late 2025 or early 2026. Budgeted D&D capex for the company's Netherlands non-operated assets is $21-million to $23-million, including approximately $14-million for Malachite L10.

Annual consolidated production guidance for 2025 is 2,900 to 3,100 boe/d, approximately 10 per cent higher than 2024. The company's 2025 guidance reflects continuing growth at Leduc-Woodbend and a flat year-over-year production profile for its non-operated Dutch North Sea assets, after including a one-month contribution from Malachite at the end of 2025.

Transition activities to effect closing of the NOBV acquisition are under way with an anticipated completion date in line with the company's previously reported expectations. In addition, the company continues to evaluate and advance additional opportunities in its transaction pipeline.

Organizational update

The scope of the company's activities continues to grow as it approaches closing of the NOBV acquisition, and pursues additional organic and M&A (merger and acquisition) investment opportunities. Accordingly, the company is announcing two key additions to the Tenaz team to add shareholder value in a number of aspects of its business plan.

The company is pleased to announce the appointment of Adam Iwanicki as vice-president of marketing. Mr. Iwanicki has more than 29 years of marketing, risk management and market research experience in global commodities and currencies, including design and execution of successful hedging programs for TTF gas. He most recently was director of marketing for Vermilion Energy, with earlier positions at Baytex Energy, ARC Resources and BP PLC. Mr. Iwanicki has a bachelor of arts degree in economics and international relations from the University of Calgary and a master's degree in international relations from Jagiellonian University in Krakow, Poland.

The company is also pleased to announce the appointment of Jamie Gagner as vice-president and general counsel. Mr. Gagner has served as corporate secretary since the formation of Tenaz as a public company in 2021. He has over 25 years of experience in public markets securities, corporate governance and M&A through a wide range of engagements on international, Canadian and U.S. projects. Mr. Gagner was most recently a partner at Lawson Lundell LLP and previously at Norton Rose Fulbright LLP. He has a bachelor of laws degree from the University of Saskatchewan and bachelor of arts degree from the University of British Columbia (political science and history) and is a member of the Law Society of Alberta.

The company is excited about the continued enhancement of the Tenaz team. It is ultimately the people in the company that will determine its long-term success. The company is confident that these new officers will facilitate the execution of its business development activities, as well as improve the performance of its existing assets and the NOBV acquisition.

About Tenaz Energy Corp.

Tenaz is an energy company focused on the acquisition and sustainable development of international oil and gas assets. Tenaz has domestic operations in Canada along with offshore natural gas and mid-stream assets in the Netherlands. The domestic operations consist of a semi-conventional oil project in the Rex member of the Mannville group at Leduc-Woodbend in central Alberta. The Dutch natural gas assets are located in the Dutch sector of the North Sea. Tenaz's common shares are listed for trading on the Toronto Stock Exchange under the symbol TNZ.

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