TSX: TVE
CALGARY, AB, Nov. 1, 2021 /CNW/ - Tamarack Valley Energy
Ltd. ("Tamarack" or the "Company") is pleased to
announce the Toronto Stock Exchange (the "TSX") has approved the
Company's application for a normal course issuer bid (the
"NCIB").
The NCIB allows Tamarack to purchase up to 20,354,360 common
shares ("Common Shares") of the Company (representing approximately
5% of the 407,087,206 outstanding Common Shares as of
October 25, 2021) over a period of
twelve months commencing on November 3,
2021. The NCIB will expire no later than November 2, 2022. The actual number of Common
Shares which may be purchased pursuant to the NCIB will be
determined by management of the Company. Any Common Shares that are
purchased under the NCIB will be cancelled upon their purchase by
Tamarack.
Under the NCIB, Common Shares may be repurchased in open market
transactions on the TSX and alternative Canadian trading systems,
or by such other means as may be permitted by the TSX and
applicable securities laws and in accordance with the rules of the
TSX governing NCIBs. The price which the Company will pay for any
such Common Shares will be the prevailing market price at the time
of purchase.
The total number of Common Shares the Company is permitted to
purchase is subject to a daily purchase limit of 667,450 Common
Shares, representing 25% of the average daily trading volume of
2,669,801 Common Shares on the TSX calculated for the six-month
period ended September 30, 2021.
Notwithstanding the daily purchase limit, Tamarack may make one
block purchase per calendar week which exceeds the daily repurchase
restrictions.
The NCIB will provide an additional tool for the reinvestment of
excess free funds flow(1) to increase long-term total
shareholder returns. Tamarack believes that at times, the
prevailing share price does not reflect the underlying value of the
Common Shares and the repurchase of Common Shares represents an
opportunity to improve per share metrics. As with all expenditures,
Tamarack will remain vigilant in ensuring it retains flexibility
and liquidity on its balance sheet.
About Tamarack Valley Energy Ltd.
Tamarack is an oil and gas exploration and production company
committed to free funds flow generation and financial stability
through the identification, evaluation and operation of resource
plays in the Western Canadian Sedimentary Basin. Tamarack's
strategic direction is focused on three key principles: (i)
targeting repeatable and relatively predictable plays that provide
long-life reserves; (ii) using a rigorous, proven modeling process
to carefully manage risk and identify opportunities; and (iii)
operating as a responsible corporate citizen with a focus on
environmental, social and governance (ESG) commitments and goals.
The Company has an extensive inventory of low-risk, oil development
drilling locations focused primarily on Charlie Lake, Clearwater and enhanced oil recovery (EOR)
plays in Alberta that are economic
over a range of oil and natural gas prices. With this type of
portfolio and an experienced and committed management team,
Tamarack intends to continue delivering on its strategy to maximize
shareholder returns while managing its balance sheet.
READER ADVISORIES
Notes to Press Release
(1) See "Non-IFRS Measures"; free funds flow
was previously referred to as free adjusted funds
flow.
Forward Looking Information
This press release
contains certain forward-looking information (collectively referred
to herein as "forward-looking statements") within the meaning of
applicable Canadian securities laws. More particularly and without
limitation, this press release contains forward-looking statements
regarding potential NCIB purchases and the anticipated advantages
to shareholders of the NCIB. All statements, other than statements
of historical facts, that address activities that Tamarack assumes,
anticipates, plans, expects, believes, projects, aims, estimates or
anticipates (and other similar expressions) will, should or may
occur in the future are forward- looking statements. The
forward-looking statements provided in this press release are based
on management's current belief, based on currently available
information, as to the outcome and timing of future events.
Tamarack cautions that its intention to proceed with the NCIB and
other forward-looking statements relating to Tamarack are subject
to all of the risks and uncertainties normally incident to such
endeavors. These risks relating to Tamarack include, but are not
limited to, that Tamarack will not be able to achieve the
anticipated benefits of the NCIB. Readers are cautioned that the
foregoing list of factors is not exhaustive. Please refer to the
annual information form for the year ended December 31, 2020 and the management's discussion
and analysis for the three and nine months ended September 30, 2021 (the "MD&A") for
additional risk factors relating to Tamarack, which can be accessed
either on Tamarack's website at www.tamarackvalley.ca or under the
Company's profile on www.sedar.com. The forward-looking statements
contained in this press release are made as of the date hereof and
the Company does not undertake any obligation to update publicly or
to revise any of the included forward-looking statements, except as
required by applicable law. The forward-looking statements
contained herein are expressly qualified by this cautionary
statement.
Non-IFRS Measures
Certain measures commonly used in
the oil and natural gas industry referred to herein, including,
"adjusted funds flow" and "free funds flow" do not have a
standardized meaning prescribed by IFRS and therefore may not be
comparable with the calculation of similar measures by other
companies. These non-IFRS measures are further described and
defined below. Such non-IFRS measures are not intended to represent
operating profits nor should they be viewed as an alternative to
cash flow provided by operating activities, net earnings or other
measures of financial performance calculated in accordance with
IFRS.
"Adjusted funds
flow" Adjusted funds flow is calculated by taking
cash-flow from operating activities and adding back changes in
non-cash working capital and expenditures on decommissioning
obligations since Tamarack believes the timing of collection,
payment or incurrence of these items is variable. Expenditures on
decommissioning obligations may vary from period to period
depending on capital programs and the maturity of the Company's
operating areas. Expenditures on decommissioning obligations are
managed through the capital budgeting process which considers
available adjusted funds flow. Tamarack uses adjusted funds flow as
a key measure to demonstrate the Company's ability to generate
funds to repay debt and fund future capital investment. Adjusted
funds flow per share is calculated using the same weighted average
basic and diluted shares that are used in calculating loss per
share.
"Free funds
flow" (previously referred to as "free adjusted
funds flow") is calculated by taking adjusted funds flow and
subtracting capital expenditures, excluding acquisitions and
dispositions, Management believes that free funds flow provides a
useful measure to determine Tamarack's ability to improve returns
and to manage the long-term value of the business.
Please refer to the MD&A for additional information relating
to Non-IFRS measures. The MD&A can be accessed either on
Tamarack's website at www.tamarackvalley.ca or under the Company's
profile on www.sedar.com.
SOURCE Tamarack Valley Energy