Page 1

tamarack valley ENERGY TSX : TVE Tamarack Valley Energy Ltd. Announces Fourth Quarter and Year End 2020 Financial Results and Reserves Highlights - Calgary , Alberta March 1 , 2021 - Tamarack Valley Energy Ltd. ( " Tamarack ” or the “ Company ” ) is pleased to announce its financial and operating results for the three months and year ended December 31 , 2020 and the results of its independent oil and gas reserves evaluation as of December 31 , 2020 , prepared by GLJ Ltd. ( " GLJ ” ) ( the " GLJ Report ” ) . Selected financial , operational and reserves information is outlined below and should be read with Tamarack's audited consolidated financial statements ( " Financial Statements " ) and management's discussion and analysis ( " MD & A ” ) as of December 31 , 2020 , which are available on SEDAR at www.sedar.com and on Tamarack's website at www.tamarackvalley.ca . The Company's annual information form ( " AIF " ) for the year ended December 31 , 2020 has been filed on SEDAR today and is also available on Tamarack's website . Brian Schmidt , President and Chief Executive Officer of Tamarack commented , " 2020 brought with it many challenges for the industry as a whole . Despite the extreme volatility , economic damage and pricing uncertainty caused by the COVID - 19 pandemic , we were able to effectively manage our business with a focus on maintaining financial strength and executed on two strategic acquisitions : the West Central acquisition in July and the transformational entry into the highly economic Clearwater oil play in December . The combined acquisitions supplement our highly economic drilling location runway by approximately 471 ( 403.9 net ) wells and enhance the underlying sustainability of the Company through a 23 % blended acquisition decline rate . Furthermore , 2020 represented significant growth in our Veteran Viking waterflood reserves which will serve to mitigate corporate declines and enhance our sustainability . Looking forward to 2021 , we are focused on maximizing our free adjusted funds flow ( see “ Non - IFRS Measures " ) through a $ 105- $ 110 million capital program focused on the Clearwater and the Veteran waterflood oil programs which will enable aggregate production growth of approximately 5 % and increase oil weighting by approximately 30 % at exit 2021 compared to 2020 , as previously announced on January 11th , 2021. In addition , we remain focused on further advancing the 2021 initiatives and targets set within our robust environmental , social and governance ( " ESG " ) reporting frameworks . " Q4 2020 Financial and Operating Highlights • • • Announced the transformational entrance into the Clearwater oil play on December 21 , 2020 through two strategic acquisitions establishing a significant consolidated and operated position of approximately 107,000 net acres along with approximately 2,000 bbls / d of oil production , for total cash consideration of $ 94.9 million . These acquisitions were financed through a combination of debt and a $ 47.1 million private placement ( 40.9 million shares issued at $ 1.15 per share ) , along with a Gross Overriding Royalty ( " GORR " ) disposition on specific acquisition lands in the Clearwater for proceeds of approximately $ 15.5 million . Achieved quarterly production volumes of 22,049 boe / d in Q4 / 20 , representing a 2 % increase from the previous quarter while 2020 annual volumes averaged 22,027 boe / d . Generated adjusted funds flow ( see " Non - IFRS Measures " ) of $ 28.9 million in Q4 / 20 ( $ 0.13 per share basic and diluted ) and $ 122.7 million for the full year 2020 ( $ 0.55 per share basic and diluted ) in addition to free adjusted funds flow ( see " Non - IFRS Measures " ) of $ 19.2 million for the year . Invested $ 13.1 million and $ 103.5 million in exploration and development capital expenditures ( " E & D " ) , excluding acquisitions , during Q4 / 20 and full year 2020 , respectively , which contributed to drilling 72 ( 69.9 net ) wells , comprised of 57 ( 55.8 net ) Viking oil wells , one ( 0.8 net ) Viking gas well , six ( 5.3 net ) Cardium