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tamarack valley ENERGY TSX : TVE Tamarack Valley Energy Ltd. Announces Strategic Clearwater Consolidation Through the Acquisition of Crestwynd Exploration Ltd. and Transition to Sustainability Linked Lending Calgary , Alberta - December 15 , 2021 – Tamarack Valley Energy Ltd. ( " Tamarack " or the " Company " ) is pleased to announce that it has entered into a definitive agreement ( the " Agreement " ) to acquire Crestwynd Exploration Ltd. ( " Crestwynd " ) , a privately held pure play Clearwater oil producer , for total consideration of $ 184.7 million ( the " Acquisition " ) . The consideration consists of : ( i ) $ 92.6 million in cash , subject to adjustment ; and ( ii ) the issuance of 26,298,396 common shares of Tamarack ( " Tamarack Shares " ) at a deemed price of $ 3.50 per Tamarack Share . Tamarack's syndicate has provided an extension of the Company's existing $ 600 million revolving credit facility to December 2023 and transitioned the facility to a sustainability linked lending facility ( " SLL Facility " ) . In conjunction with the Acquisition , National Bank Financial as syndicate lead , has provided commitments for a separate and additional $ 100 million credit facility . Brian Schmidt ( Aakaikkitstaki ) , Tamarack's President and CEO highlighted : " The Acquisition further establishes Tamarack as a leading operator in the highly economic Clearwater oil play . Acquiring high quality assets with significant free funds flow ( 1 ) where we can leverage our operational and technical expertise is a core principle of Tamarack's returns focused strategy . In addition , Tamarack's transition to the SLL Facility demonstrates our commitment to responsible development " Clearwater Acquisition Highlights ● ● Strategic sustainable , high quality Clearwater assets O Forecast 2022 production of ~ 4,500 boe / d ( ² ) is expected to deliver $ 90 million of operating netback Low annual sustaining capital of $ 30 to $ 35 million required to hold production levels flat on the acquired assets ( ³ ) 209 ( 153.7 net ) future drilling locations ( 4 ) , across only 50 % of the 99,360 net acres acquired which supports maintaining current production levels for seven years O Additional unbooked future exploration upside potential across the balance of the acquired acreage O O O Consolidates Tamarack's existing Southern Clearwater working interest to 95 % and solidifies its dominant position as the largest operator in the area Attractive environmental & ESG profile O Minimal asset retirement obligation ( ARO ) and limited freshwater requirements O Tamarack plans to implement gas conservation infrastructure within the current Southern Clearwater development plan Increased exposure to the Clearwater , one of the most economic plays in North America O Pro forma the Acquisition , Tamarack will control 445 net sections of Clearwater land across the Nipisi , West Marten Hills and Southern Clearwater areas