Tenaz Energy has announced its 2025 guidance, prior to the closing of the acquisition of NAM Offshore BV ("NOBV"). Tenaz will update its 2025 guidance reflecting additional investment and production from NOBV after closing, which is projected to occur at mid-year 2025 or earlier.

Tenaz Energy's Board of Directors has approved a drilling and development capital ("D&D CAPEX") budget of $30 to $34 million. The Company also intend to invest approximately $1.7 million in exploration and evaluation capital ("E&E CAPEX") to evaluate the potential CCS project at L10 in the Dutch North Sea. Production guidance for 2025 is 2,900 to 3,100 boe/d, reflecting growth of approximately 10% from 2024.

Capital and Production Guidance

The Company's planned D&D CAPEX program envisions a three (2.3 net) well drilling program in the Glauconitic and Ellerslie formations at Leduc-Woodbend, using unstimulated horizontal wells. We have a large number of additional development drilling opportunities in the Rex, Ellerslie, Glauconitic and Sparky formations, and have the flexibility to scale up activity during the year. Our planned Canadian program prioritizes what we believe to be our most capital efficient inventory while maintaining approximately 15% production growth at Leduc-Woodbend. D&D CAPEX in Canada is budgeted to be $9 to $11 million.

In their non-operated Dutch North Sea assets, Tenaz expect to invest in their share of minor production-adding activities on existing wells, facility maintenance, and a development well in the L10-hub area. The L10 Malachite extended-reach development well (Tenaz working interest of 21.43%) is expected to be drilled in the second half of 2025, with some timing uncertainty that may push this well into 2026. The L10 Malachite well targets a pool that was previously tested but not developed. Programmed total measured depth is 4,800 meters to reach a Rotliegend sand at a true vertical depth of 3,500 meters. The well is anticipated to be drilled from an existing platform and brought online within existing infrastructure to the L10-hub for processing and delivery to the NGT system. Expected gross production rate is expected to be approximately 25 MMcf/d, with first production in late 2025 or early 2026. Budgeted D&D CAPEX for the Company's Netherlands non-operated assets is $21 to $23 million, including approximately $14 million for Malachite L10.

Annual consolidated production guidance for 2025 is 2,900 to 3,100 boe/d(1), approximately 10% higher than 2024. Our 2025 guidance reflects continuing growth at Leduc-Woodbend and a flat year-over-year production profile for our non-operated Dutch North Sea assets, after including a one-month contribution from Malachite at the end of 2025.

(1) The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Per boe amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 Mcf) of natural gas to one barrel (1 bbl) of crude oil. Refer to "Barrels of Oil Equivalent" section included in the "Advisories" section of this press release.
(2) This is a non-GAAP financial measure.

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