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Platform K12-B Dutch North Sea, NetherlandsDrilling Horizontal Well 12-14 at Leduc-Woodbend, Canada NGT Treatment Plant at Uithuizen, Netherlands 2025 Budget (Pre-NOBV) December 2024
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2 Tenaz Energy Note to Investors This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities by any person in any jurisdiction in which it is unlawful for such person to make such an offer or solicitation. This presentation is not, and in no circumstances is to be construed as, a prospectus, an advertisement, or a public offering of securities. The information presented herein is not intended to provide, and must not be relied on for, accounting, legal, regulatory, tax, business, financial or related advice or investment recommendations. No person providing any information herein is acting as fiduciary or advisor with respect to such information. You must consult with your own advisors as to the legal, regulatory, tax, business, financial, investment and other aspects of the information. Cautionary Statement Regarding Forward-Looking Statements Certain information contained in this presentation constitutes forward-looking information or forward-looking statements (collectively, “forward-looking statements”) under applicable securities laws. All statements other than statements of historical fact are forward‐looking statements. Forward‐looking statements typically contain words such as “anticipate”, “believe”, “confirms”, “continuous”, “estimate”, “expect”, “may”, “plan”, “project”, “should”, “will”, or similar words suggesting future outcomes. This presentation contains forward-looking information and statements including, without limitation, relating to the Corporation’s vision and strategy; expected closing of the senior unsecured notes offering and liquidity provided; our operations including future growth; a potential CCS project; reserves and resources; oil and gas discoveries; production mix, average production and D&D CAPEX guidance; and statements pertaining to the acquisition of NOBV including, without limitation, expected closing, cash-to-close and sources of funding thereof, the pro forma combined business including leverage at closing, production, FCF mix, operating and financial metrics and reserves, and reinvestment potential. Readers are cautioned not to place undue reliance on the forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, as well as known and unknown risks and uncertainties, both general to the industry as a whole and specific to the Corporation and its proposed investments and strategies, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur and which may cause the Corporation’s actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by the forward-looking statements contained herein. These assumptions, risks and uncertainties include, among other things: ability to successfully complete acquisitions and implement strategic initiatives and whether such initiatives yield the expected benefits and results; fluctuations in the supply and demand for natural gas, NGLs and crude oil; assumptions regarding commodity prices; activities of producers, competitors and others; the weather; assumptions around construction schedules and costs, including the availability and cost of materials and service providers; fluctuations in currency and interest rates; credit risks; marketing margins; disruption or unexpected technical difficulties in developing assets; Tenaz’s ability to generate sufficient cash flow from operations to meet its current and future obligations; its ability to access external sources of debt and equity capital; changes in laws or regulations or the interpretations of such laws or regulations; political and economic conditions; and other risks and uncertainties described from time to time in the reports and filings made by Tenaz with securities regulatory authorities or otherwise. Readers are cautioned that the foregoing list of important factors is not exhaustive. All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Financial outlook and future-oriented financial information, that may be contained in this presentation about prospective financial performance or financial position is based on assumptions about future events, including any economic conditions and proposed courses of action, based on management’s assessment of the relevant information currently available. Readers are cautioned that any such financial outlook and future-oriented financial information contained herein should not be used for purposes other than for which it is disclosed herein. The prospective financial information included in this presentation has been prepared by, and is the responsibility of, the Corporation. The Corporation believes that prospective financial information has been prepared on a reasonable basis, reflecting the best estimates and judgments, and represents, the Corporation’s expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Tenaz believes that its financial analyses must be considered as a whole and that selecting portions of its analyses and the factors considered by it, without considering all factors and analyses together, could create a misleading view of the process underlying such financial analyses. The preparation of any financial forecast is complex and is not necessarily susceptible to partial analysis or summary description and any attempt to do so could lead to undue emphasis on any particular factor or analysis. Forward-looking statements, and any financial outlook and future-oriented financial information contained in this presentation are made as at the date of this presentation and the Corporation disclaims any intent or obligation to update or to revise any of the included forward-looking statements, financial outlook or future-oriented financial information whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Currency Disclaimer All dollar figures contained in this presentation are in Canadian dollars "CAD" unless otherwise stated. Reader Advisories
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3 Tenaz Energy Budget and Transition Update • Announced production and capital guidance for '25, prior to closing of NOBV acquisition • Planning three gross (2.3 net) horizontal open hole multi-laterals in Canada • Drilling of non-operated development well (0.21 net) in Netherlands, planned for H2 '25 • Approximately 10% production growth for '25, and sets up growth for '26 • $30 - $34 million D&D CAPEX, with similar Canadian CAPEX and increased Netherlands CAPEX as compared to '24 • $1.7 million E&E CAPEX for L10 CCS • NOBV transition • Continued progress towards completion • Strong interaction between the Tenaz and NOBV teams • Highly-qualified and motivated NOBV staff • Project inventory exceeds expectations
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4 Tenaz Energy 2025 Activity AECO 25% TTF 31% NGLs (WTI) 1% Canadian Oil 43% 2025E Production Mix 2025 Guidance2 2025 Average Production 2,900 to 3,100 boe/d 2025 D&D CAPEX $30 to $34 million 1. Conversion to $/Mcf using FX of 1.50 and 3.412 Mcf to MMBtu. 2. Guidance announced in December 2024 and excludes NOBV. Tenaz will update its 2025 guidance reflecting additional investment and production from NOBV after closing of the acquisition, which is projected to occur at mid-year 2025 or earlier. Three gross (2.3 net) well Ellerslie and Glauconite drilling program planned in Canada Large number of additional development drilling opportunities in the Rex, Ellerslie, Glauconite and Sparky at Leduc-Woodbend Non-operated L10 Malachite development well in Dutch North Sea (21.4% WI) Budget designed to deliver approximately 10% production growth, including one month of L10 Malachite production Continued evaluation of Netherlands CCS with $1.7 million of FEED capital Operational transition to integrate and close NOBV acquisition Disciplined M&A efforts in regions of focus Gas Hedging Commodity/Period Type Volume (Mcf/d) Price ($/Mcf)1 AECO WINTER24 Swap 1,000 $3.11 SUMMER25 Swap 1,100 $2.22 WINTER25 Swap 500 $3.32 TTF WINTER24 Swap 1,200 $14.36 WINTER24 Collar 1,200 $14.14-$18.01 SUMMER24 Swap 1,300 $17.00 WINTER25 Swap 1,300 $18.78 WINTER25 Collar 1,400 $15.91-$20.02 2025 Guidance Details (Without NOBV)
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5 Tenaz Energy Officer Appointments Adam Iwanicki, VP of Marketing • More than twenty years of marketing, risk management and market research experience in global commodities and currencies, including design and execution of successful TTF hedging programs • Previously Director of Marketing for Vermilion Energy, with earlier positions at Baytex Energy, ARC Resources, and BP p.l.c. • BA in Economics and International Relations from University of Calgary, and a Master’s in International Relations from Jagiellonian University in Krakow, Poland. Jamie Gagner, VP & General Counsel • More than twenty-five 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. • Previously partner at Lawson Lundell LLP, and earlier at Norton Rose Fulbright LLP. • Bachelor of Laws from University of Saskatchewan, BA from University of British Columbia (Political Science and History), and a member of the Law Society of Alberta. • Continues as Tenaz’s Corporate Secretary
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6 Tenaz Energy Disclaimer Non–GAAP Measures This presentation contains the terms “fund flows from operations”, “free cash flow”, “capital expenditures” and “decommissioning expenditures”, which are considered “non-GAAP financial measures”. In addition, this presentation contains the measure adjusted working capital, which is considered a “capital management measure”. These terms do not have a standardized meaning prescribed by GAAP. Accordingly, the Company’s use of these terms may not be comparable to similarly defined measures presented by other companies. Where these measures are used, they should be give n careful consideration by the reader. A reconciliation of the non- GAAP measures to their most directly comparable GAAP measures can be found in Tenaz’s most recent MD&A available on SEDAR+ at www.sedarplus.ca. Future Development Costs • The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development capital generally will not reflect total finding and development costs related to reserve additions for that year. • The calculation of finding and development ("F&D") costs includes the change in future development costs ("FDC") required to bring proved undeveloped and developed reserves into production. The F&D number is calculated by dividing the identified capital expenditures by applicable reserve additions including extensions, infills, rev isions, acquisitions and disposals, and economic factors, after changes in FDC. • Recycle Ratio is a Non-IFRS ratio that is calculated by dividing operating netback (Non- IFRS measure) by the cost of adding reserves (“F&D Cost”). • "F&D Cost” and "Recycle Ratio" do not have standardized meanings and therefore may not be comparable with the calculation of similar measures for other entities. Information Regarding Disclosure on Oil and Gas Reserves All reserves information publicly reported by Tenaz were prepared by McDaniel and Associates Consultants Ltd., for Tenaz, in accordance with NI 51-101 and the COGE Handbook. The estimates of reserves for an acquisition may not reflect the same confidence level as estimates of reserves for all of Tenaz’s properties, due to the effects of aggregation and timing of the effective date. All reserve references are “gross reserves” w hereby gross reserves are a company’s total working interest reserves before the deduction of any royalties payable by such company and befor e the consideration of such company’s royalty interests. Barrels of Oil Equivalent The term barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. Per boe amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 Mcf) of natural gas to one barrel (1 bbl) of crude oil. The boe conversion ratio of 6 Mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equiv alency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalent o f 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. Notes Regarding Resources & Reserves Disclosure Contingent Resources 1. There is no certainty that it will be commercially viable to produce any portion of the resources. 2. Company gross contingent resources are based on the working interest share of the property gross resources. 3. These are unrisked contingent resources that do not take into account the chance of development, which is defined as the probability of a projec t being commercially viable. Quantifying the chance of development requires consideration of both economic contingencies and other contingencies such as legal, regulatory, market access, polit ical, social license, internal and external approvals and commitment to project finance and development timing. As many of these factors are extremely difficult to quantify, the chance of development is uncertain and must be used with caution. The chance of development was estimated to be 60 percent for the crude oil and 75 percent for the natural gas. 4. These are economic contingent resources and are sub- classified in terms of maturity as development on hold. 5. Vermeer crude oil at 30o API and Rembrandt crude oil at 23 o API. 6. Based on a Mcf to boe conversion of 6 to 1. A boe conversion of 6 to 1 is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Prospective Resources 7. There is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be economically viable or technically feasible to produce any portion of the resources. 8. Company gross contingent resources are based on the working interest share of the property gross resources. 9. These are unrisked prospective resources that take into account the chance of discovery but not the chance of development, which is defined as t he probability of a project being commercially viable. Quantifying the chance of development requires consideration of both economic contingencies and other contingencies such as legal, regulatory , market access, political, social license, internal and external approvals and commitment to project finance and development timing. As many of these factors are extremely difficult to quantify, the chance of development is uncertain and must be used with caution. The chance of development was estimated to be 60 percent for the crude oil and 75 percent for the natural gas. 10. Volumes listed are full life volumes, prior to any cutoffs due to economics. 11. Crude oil prospects with expected quality consistent with prior discoveries. 12. Based on a Mcf to boe conversion of 6 to 1. A boe conversion of 6 to 1 is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.