Tenth Avenue Petroleum Announces Third Quarter 2024 Financial & Operating Results

NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION IN THE UNITED STATES

CALGARY, AB / ACCESSWIRE / November 26, 2024 / Tenth Avenue Petroleum Corp. ("TPC" or the "Company") (TSXV:TPC) is pleased to announce its financial and operating results for the three and nine months ended September 30, 2024. The associated management's discussion and analysis ("MD&A") and unaudited interim financial statements for the three and nine months ended September 30, 2024, can be found at www.sedarplus.ca and www.tenthavenuepetroleum.com

The Company's key achievements in the third quarter of 2024 included the following:

• Executed Purchase and Sales Agreement to acquire 82 boe/d (492 mcf/d).

• Achieved production average of 75 boe/d (97% oil & NGLs).

• Closed first tranche of its non-brokered private placement for gross proceeds of $417,000.

During the third quarter the Company executed a Purchase and Sales Agreement ("PSA") to acquire (the "Acquisition") approximately 82 boe/d (492 mcf/d) of low decline, long life producing natural gas assets located northeast of Brooks, Alberta. The Acquisition provides gas wells, surface facilities, pipeline network and certain multi-zone upside over 32 gross (16 net) sections of contiguous land at Patricia and Dinosaur area. The acquisition will be paid through the issuance of 100% shares, is expected to close on or about November 29, 2024, and is subject to customary closing conditions including receiving no right of first refusal notice. The region has seen significant recent activity with SLB selling its interest in the Palliser Block on October 17, 2024, as rapid transition to horizontal drilling, with producers targeting the Mannville Group, including the Basal Quartz, Ellerslie, Glauconitic zones, among other prospective intervals.

Q3 2024 OPERATIONAL AND FINANCIAL HIGHLIGHTS

1. Capital Management Measure; See "Non-IFRS Financial Measures, Non-IFRS Financial Ratios and Capital Management Measures" Section of the MD&A.

2. Non-IFRS Financial Ratio; See "Non-IFRS Financial Measures, Non-IFRS Financial Ratios and Capital Management Measures" Section of the MD&A.

Revenues in Q3/24 decreased by 14% to $652,735 from Q2/24 revenue of $761,211 due to a 19% decrease in production and a 4% decrease in realized WTI prices. Production decreased to 75 boe/d (97% Oil & NGLs) due to shut in production curtailment and low gas prices. During the third quarter the company completed its annual summer maintenance program at both Hays and Murray Lake, directly impacting oil production during the quarter, which has since been restored. During the third quarter the Company saw a $9,758 realized gain on financial commodity contracts, royalty expenses of $98,329, and net production expenses of $466,213, resulting in an operating netback of $14.11 per boe (after derivates).

At Murray Lake, the company completed an upgrade to its pipeline infrastructure leaving the facility at 7-36, which goes north to the new horizontal injection well at 5-36. As a result of these upgrades, approx. 15 bbls/d has been offline since August 19^th, 2024. Upgrades to the 330 meter out bound high pressure flex pipe injection line will further increase the company's ability to inject larger volumes of water in the north and west side of the Mannville pool. All upgrades, pipeline repairs and summer maintenance activities have now been completed and approved by the AER, with production having come back online on November 15th, 2024. The Company anticipates that the new high pressure injection line going from the 7-36 facility up to the new horizontal injection well at 5-36 should result in higher recovery factors and an increase in future oil production.

An updated corporate presentation can be found at www.tenthavenuepetroleum.com

For further information please contact:
Tenth Avenue Petroleum Corp.
Cameron MacDonald, President & CEO
Phone: (403) 585-9875
Email: [email protected]
www.tenthavenuepetroleum.com

About Tenth Avenue Petroleum Corp.
Tenth Avenue Petroleum Corp. is a junior oil and gas exploration and production company with operations in Alberta.

Forward-looking Information and Statements
The information in this news release contains certain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control, including: the inability of the Company to meet its commitments on its lands or on the lands it may acquire, the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves, changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; geological, technical, drilling, completion and processing problems and other difficulties in producing petroleum reserves; and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits the Company will derive from them. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The forward-looking statements in this news release are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements. Investors are encouraged to review and consider the additional risk factors set forth in the Company's continuous disclosure documents which are available on SEDAR+ at www.sedarplus.com.

Oil and Gas Advisories
Meaning of Boe

The term "boe" or barrels of oil equivalent may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additionally, given that the value ratio based on the current price of crude oil, as compared to natural gas, is significantly different from the energy equivalency of 6:1; utilizing a conversion ratio of 6:1 may be misleading as an indication of value.

Reserves Estimates
The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.

Non-GAAP Measurements
The Company utilizes certain measurements that do not have a standardized meaning or definition as prescribed by International Financial Reporting Standards ("IFRS") and therefore may not be comparable with the calculation of similar measures by other entities, including but not limited to operating netback, cash flow and working capital. Readers are referred to advisories and further discussion on non-GAAP measurements contained in the Company's continuous disclosure documents. Operating netback is a non‐GAAP measure calculated as the average per boe of the Company's oil and gas sales, less royalties and operating costs.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Tenth Avenue Petroleum Corp.