Page 12 - NorthAmOil Week 22 2021

NorthAmOil NEWS IN BRIEF NorthAmOil

UPSTREAM inventory of future drilling locations and Linhua Guan. “Using dual fuel completions
Charlie Lake acreage by an incremental 33 and plans to further reduce GHG emissions
Tamarack Valley Energy (32.7 net) locations and greater than 18,000 with an electric frack fleet demonstrate Surge’s
additional acres of land, through strategic
commitment to sustainability.”
announces closing of tuck-in activity in the greater Charlie Lake SURGE ENERGY US HOLDINGS, June 3, 2021
fairway since the initial announcement of
previously announced the acquisition. Tamarack’s highly economic HNRC targets $100mn
Charlie Lake inventory represents >257 (240.0
Anegada Oil acquisition and net) locations and over 10 years of planned expansion
drilling inventory in the play. The Charlie
Charlie Lake Update Lake light oil inventory has very robust Houston Natural Resources Corp. (HNR)
confirmed today that it is targeting
economics consisting of: high productivity
Tamarack Valley Energy is pleased to wells (IP30 rates of >650 boepd(4)); payouts acquisitions up to $100mn in acquisitions in
announce that it has successfully closed the of less than 6 months; profit to investment the oil and gas sector through its subsidiary
previously announced acquisition of Anegada ratios(1) (10% discount) of >1.7; and long- Houston Natural Resources, Inc. (HNRI).
Oil. Tamarack acquired all of the issued and term net asset value growth (NPV10 per well This would add more than $6 per share
outstanding common shares of Anegada for greater than CAD5mn) at $55/bbl WTI and to HNRI’s independently appraised value
total net consideration of 105.3mn common $2.50/GJ AECO. of $69,000,000 in proven reserves that are
shares of Tamarack and CAD247.5mn in cash TAMARACK VALLEY ENERGY, June 1, 2021 currently valued at $4.47 per share.
and assumed net debt, after deducting the Oil prices have been rising driven by
proceeds from the closing of the previously Surge Energy America expectations that recovering demand with
announced 2% gross overriding royalty. In summer travel and reopening economies will
conjunction with the acquisition, Tamarack’s announces use of dual fuel easily accommodate the gradual increase in
credit syndicate has increased the company’s OPEC+ production.
credit facilities to $600mn and extended the completions Oil prices rose sharply on Tuesday, with
revolving period to May 31, 2022. Brent topping $71 per barrel, the highest
Current production from the newly Surge Energy US Holdings announces the level in more than two and a half years. “The
acquired assets is approximately 12,500 use of dual fuel completions on a multi-well, demand growth is pretty OK, the OPEC+
boepd. The company forecasts a range of multi-zone pad in its Moss Creek field. discipline is very good, inventories are
12,000 to 13,000 boepd for the second half Surge Energy recently completed a multi- going down,” Fereidun Fesharaki, chairman
of 2021, maintaining that level of production zone, 10 well project in the company’s Moss of consultants FGE, said in a Bloomberg
on a go forward basis. Tamarack plans to run Creek field in Howard County. Within this television interview. “If there is no Iranian
two rigs in the play during the month of June, project, the Company completed a five-well shadow on the market, prices could hit $75-
with plans to drill 12 (12.0 net) wells for the pad with a compressed natural gas (CNG) $80 by the middle of the third quarter.”
remainder of the year, with seven (7.0 net) in and diesel dual fuel system which yielded a HNRI has acquired approximately 2,800
the Pipestone area, two (2.0 net) in Wembley, GHG emissions reduction of approximately acres of oil and gas leases located in the Halff
two (2.0 net) in Saddle Hills and one (1.0 net) 845 metric tons (1.86mn pounds) of CO2e Oil Field in Crockett County, Texas. HNRI is
in Valhalla. Approximately two-thirds of the Emissions. Further, the Company has plans currently reviewing possible acquisitions of
wells planned are three-mile horizontals with to introduce an electric frac fleet in 2021 to producing oil and gas properties in addition
the remainder being two-mile horizontals. further reduce GHG emissions. to operating its water treatment facilities
Tamarack’s total budget for 2021 is expected “The use of CNG and diesel dual fuel operated by its subsidiary HNR Oil Services,
to be approximately CAD180mn. powered fracking is the latest example of LLC.
Tamarack has proactively enhanced the Surge’s culture of innovation,” stated CEO The company has previously announced
that it intends to focus on realizing the value
on the total of $9.67 per share in assets
held by its subsidiaries for the benefit of
the shareholders. The strategy may include
asset sales, a spin off of one or more of its
subsidiaries and dividends to shareholders.
The company projects total combined
revenues of $23mn and $12mn in earnings
for the year ending December 31, 2021. The
forward earnings per share are projected to
be $0.77c per share. According to industry
research, the S&P 500 Integrated Oil & Gas
Index, forward earnings, & valuation, as of
May 25,2021, is between 8x and 14x forward
earnings. This would imply a target value
for HNRC of $6.16 per share and $10.78 per
share.
HOUSTON NATURAL RESOURCES CORP., June
2, 2021

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