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tamarack valley ENERGY TSX : TVE Tamarack Valley Energy Ltd. Announces First Quarter Financial Results & Clearwater Winter Drilling Program Update - - Calgary , Alberta May 4 , 2021 Tamarack Valley Energy Ltd. ( " Tamarack ” or the “ Company ” ) is pleased to announce its financial and operating results for the three months ended March 31 , 2021. Selected financial and operational information is outlined below and should be read in conjunction with Tamarack's unaudited condensed consolidated interim financial statements for the three months ended March 31 , 2021 and related management's discussion and analysis ( " MD & A " ) which are available on SEDAR at www.sedar.com and on Tamarack's website at www.tamarackvalley.ca . Brian Schmidt , President and CEO of Tamarack commented : " We are proud to report another very strong quarter driven by the effective execution of our drilling program and integration of the Clearwater acquisitions . The Company exceeded our Clearwater winter drilling program exit production expectations with volumes greater than 4,000 bbl / d ( ¹ ) . Furthermore , we continued to deliver on our strategy of enhancing the sustainability and resilience of our free adjusted funds flow ( 2 ) with the closing of the Greater Nipisi and Provost acquisitions on March 25th , which added ~ 2,800 boe / d ( 3 ) of low decline oil production under waterflood and grew our highly economic Clearwater oil inventory . These transactions , combined with our recently announced Anegada Oil Corp. acquisition continue to drive down our sustaining free adjusted funds flow breakeven price ( 2 ) to the mid US $ 30 / bbl , while offering significant upside to shareholders through a sector leading total return profile . In addition , we remain focused on advancing the 2021 initiatives and targets set within our robust environmental , social and governance ( “ ESG ” ) reporting . ” Q1 2021 Financial and Operating Highlights • Closed two separate agreements in March 2021 to acquire assets in the Greater Nipisi and Provost areas of Alberta , including approximately 2,800 boe / d ( 3 ) of low decline ( ~ 16 % ) oil weighted assets under waterflood and approximately 38,400 net acres in the Clearwater oil play of Alberta for a net cash purchase price of approximately $ 121 million . These acquisitions were financed through a combination of debt , a $ 68.2 million bought deal financing ( 30.3 million common shares at $ 2.25 per share ) and a gross overriding royalty ( " GORR " ) disposition on the newly acquired Greater Nipisi Clearwater and Slave Point lands for proceeds of approximately $ 13.5 million . Achieved quarterly production of 23,938 boe / d in Q1 / 21 , a 2 % increase over the same period in 2020 . • Generated adjusted funds flow ( 2 ) of $ 41.2 million in Q1 / 21 ( $ 0.16 per share basic and diluted ) . • . Invested $ 48.7 million in exploration and development ( " E & D " ) capital expenditures , excluding acquisitions , during Q1 / 21 , which contributed to the drilling of 44 ( 42.3 net ) wells , comprised of 22 ( 22.0 net ) Viking oil wells , 16 ( 15.5 net ) Clearwater oil wells , two ( 0.8 net ) Falher gas wells and four ( 4.0 net ) water source and injector wells . The Company continued to direct significant capital to our Viking waterflood program which represented approximately 34 % of the total E & D capital expenditures . Successfully executed on our Viking waterflood program , with first quarter production exit volumes of approximately 2,540 bbls / d of light oil , delivering 91 % growth on Q1 / 21 average volumes versus Q1 / 20 .