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tamarack valley ENERGY TSX : TVE Tamarack Valley Energy Ltd. Announces Third Quarter Financial Results , Dividend Policy & Return of Capital Framework and Operational & Guidance Updates Calgary , Alberta - October 27 , 2021 – Tamarack Valley Energy Ltd. ( " Tamarack " or the " Company " ) is pleased to announce its financial and operating results for the three and nine months ended September 30 , 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 and nine months ended September 30 , 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 : “ The third quarter was very strong operationally and included the successful integration of the Charlie Lake assets into our portfolio . I am very proud and confident in our team's ability to execute and drive outperformance in our assets , which is evident through our production guidance increase for 2021. Tamarack is pleased to announce its inaugural dividend and return of capital framework . Our plan to initiate a sustainable base monthly dividend commencing in January 2022 , with the framework working towards distributing up to 50 % of our free funds flow ( 1 ) as we reach our long - term debt target . The successful repositioning of the Company into the Clearwater and Charlie Lake oil plays , coupled with our strong portfolio of waterflood assets is expected to generate sustainable long - term growth in free funds flow ( 1 ) and return of capital to shareholders . " Q3 2021 Financial and Operating Highlights • • • • • • Achieved quarterly production volumes of 41,256 boe / d ( 2 ) in Q3 2021 , representing a 92 % increase compared to the same period in 2020 . Generated adjusted funds flow ( 1 ) of $ 102.5 million in Q3 2021 ( $ 0.25 per share basic and diluted ) compared to $ 30.8 million in the same period in 2020 ( $ 0.14 per share basic and diluted ) and $ 216.2 million for the nine months ended September 30 , 2021 ( $ 0.64 per share basic and $ 0.63 per share diluted ) compared to $ 93.9 million in the same period in 2020 ( $ 0.42 per share basic and diluted ) . Generated free funds flow ( 1 ) , excluding acquisition expenditures , of $ 32.5 million and net income of $ 20.0 million during the quarter . Invested $ 70.0 million in exploration and development ( " E & D " ) capital expenditures , excluding acquisitions , during the third quarter of 2021. This contributed to the drilling of 8 ( 8.0 net ) Clearwater oil wells , 7 ( 7.0 net ) Charlie Lake oil wells and 3 ( 3.0 net ) Viking oil wells along with the investment in the Nipisi Clearwater gas gathering project , which currently is conserving 2.0 mmcf / d of natural gas , and other Clearwater infrastructure initiatives . Exited the third quarter with $ 519.7 million of net debt ( 1 ) with a forecasted 2021 year - end net debt to Q4 annualized adjusted funds flow ( 1 ) of less than 1.2x . Successfully executed $ 42.9 million of further tuck - in acquisitions in the Clearwater oil ( previously announced Southern Clearwater acquisition ) and Charlie Lake light oil plays which included 53 net sections of land and 63 gross ( 59.7 net ) future drilling locations ( 3 ) in the Clearwater and added 20 gross ( 12.5 net ) sections in the Charlie Lake . These acquisitions further our strategy of both adding to and enhancing the resiliency of our drilling inventory and free funds flow ( 1 ) profile .