Tenth Avenue Petroleum Announces Second Quarter 2024 Financial & Operating Results

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

CALGARY, AB / ACCESSWIRE / August 27, 2024 / Tenth Avenue Petroleum Corp. ("TPC" or the "Company") (TSXV:TPC) is pleased to announce its financial and operating results for the three and six months ended June 30, 2024. The associated management's discussion and analysis (" MD&A ") and unaudited interim financial statements for the three and six months ended June 30, 2024, can be found at www.sedarplus.ca and www.tenthavenuepetroleum.com

The Company's key achievements for the three months ended June 30, 2024, included the following:

• Achieved production average of 93 boe/d (93% oil & NGLs).

• Generated positive cashflow from operating activities of $440,416.

• Realized and unrealized net hedging gain of $51,598 during Q2/24.

• Capital expenditures totalled $280,693.

• Reported a net loss of $228,772, or ($0.01) per basic common share.

• Working capital deficit at Q2/24 was $255,782.

• Successfully completed the conversion of 5-36 horizontal injection well at Murray Lake.

Revenues in Q2/24 decreased by 2% to $761,221 from Q1/24 and production decreased to 93 boe/d (93% Oil & NGLs). As Alberta natural gas prices continued to decline, the Company elected to shut in its 6-11 gas well located in Vulcan/Parkland area, which was previously contributing approximately 47 mcf/d (net). Production was also negatively impacted (approximately 5-8 bbls/d) by turnarounds at Hays and Murray Lake during Q2/24, which have since been restored.

The Company also achieved record cashflow from operating activities of $440,416 during Q2/24, surpassing its previous high during Q4/23 of $384,247, a 15% increase, despite lower than anticipate production volumes.

Selected Quarterly Information

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

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

Murray Lake
The enhanced oil recovery program in the Murray Lake area was aided by the successful completion of our new horizontal injection well at 5-36. During Q2/24 the Company completed the conversion of the 5-36 horizonal well which was pressure tested, equipped and brought onstream during the third week of July. Costs associated with the conversion of the 5-36 injection well totalled approximately $159,000. The Murray Lake 5-36 injection well has exhibited limited back pressure (~200 psi wellhead pressure) and is injecting water at rates of approximately 85 m3/d, which is above management's expectation. This injector is situated structurally lower in the zone and the horizontal wellbore is capable of injecting higher fluid volumes over a much larger surface area. The Company believes that if these injection rates continue, current offsetting shut-in wells that are structurally higher may qualify for reactivation.

Vulcan
At its Vulcan operations, the Company submitted its application and is awaiting regulatory approval to increase its existing water injection capacity at its 6-21 well. The Company installed a new injection pump, electrical and instrumentation upgrades and piping from its 6-21 well to the 5-21 facility, with associated costs totaling $79,838 during the quarter.

Hays
At our Hays operation, the Company had a turnaround at its Hays 9-30 facility which impacted oil production volumes by approximately 50-75 bbls during the month of June. During the turnaround the Company took the opportunity to install a larger new injection pump, upgraded surface equipment, replaced the battery liner and installed a new high level shut-down containment system for future incident prevention. Production at Hays has since returned to normal production volumes.

The Company will continue to assess uses of the free cash flow given the increase in asset performance paired with commodity fluctuations, while balancing future development.

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: cmacdonald@tenthavenuepetroleum.com
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.