Tamarack Valley Energy Ltd. Announces Filing of 2016 Annual Information Form

FOR: TAMARACK VALLEY ENERGY LTD.
TSX SYMBOL: TVE

Date issue: March 23, 2017
Time in: 6:00 AM e

Attention:

CALGARY, ALBERTA--(Marketwired - March 23, 2017) - Tamarack Valley Energy Ltd. (TSX:TVE) ("Tamarack" or the "Company") is pleased to announce it has filed today, March 23, 2017, with Canadian securities authorities its 2016 disclosure documents. Included in the Canadian filings were Tamarack's Annual Information Form ("AIF"), including disclosure and reports related to reserves data and other oil and gas information pursuant to Section 2.1 of National Instrument 51-101; its Financial Statements; and its related Management's Discussion and Analysis for the year ended December 31, 2016.

Tamarack's previously disclosed reserves summary issued on February 27, 2017 did not include the impact of the transformative Spur Resources Ltd. acquisition which closed subsequent to year end on January 11, 2017 (the "Viking Acquisition"). Included within the AIF is a pro-forma summary of the Viking Acquisition reserves evaluation ("Viking Acquisition Reserves Report") with an effective date of January 31, 2017, combined with a modified look-ahead summary performed by GLJ Petroleum Consultants, Ltd ("GLJ") on Tamarack's year end 2016 reserves effective January 31, 2017 (the "Pro-Forma Reserves Report"). Please see "Information Regarding Disclosure on Oil and Gas Reserves" below.

Pro-Forma Reserves Report Highlights:

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-- 81.5 mmboe of Proved plus probable ("2P") reserves, 47.7 mmboe of total

proved ("1P") and 30.2 mmboe of proved developed producing ("PDP") reserves (all reserves are Company Interest); -- $1.03 billion of net present value of future net revenue discounted at 10% (before tax) ("NPV10 BT) for 2P reserves, $607 million for 1P and $431 million for PDP; -- Pro-forma debt, after giving effect to the Viking Acquisition at December 31, 2016, of $128 million represents a draw of only 42% on Tamarack's $220 million credit facility, providing ample liquidity to continue developing its Viking and Cardium oil focused assets; -- Based on pro-forma production at January 11, 2017, of approximately 18,000 boe/d, Tamarack's 2P Reserve Life Index totals 12.4 years; -- Booked proved undeveloped drilling locations on a 1P and 2P basis were 283, and 507, respectively relative to the more than 800 identified locations that pay out in 1.5 years or greater at current commodity prices, demonstrating the long-term sustainability and potential future upside in Tamarack's asset base.

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Pro-Forma Reserves Report Data (Forecast Prices and Costs) - Company Interest

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SUMMARY OF PRO-FORMA OIL AND GAS RESERVES AS OF JANUARY 31, 2017 FORECAST PRICES AND COSTS RESERVES ------------------------------------------------------------ LIGHT & MEDIUM CRUDE CONVENTIONAL NATURAL OIL HEAVY CRUDE OIL GAS(1) ------------------------------------------------------------ Gross Net Gross Net Gross Net (Mbbls) (Mbbls) (Mbbls) (Mbbls) (Mmcf) (Mmcf) ------------------------------------------------------------ PROVED: Developed Producing 13,171 11,531 417 352 81,865 72,663 Developed Non- Producing 56 54 92 83 1,945 1,669 Undeveloped 9,669 8,577 182 140 35,023 32,176 ------------------------------------------------------------ TOTAL PROVED 22,896 20,163 691 574 118,833 106,508 PROBABLE 16,636 14,601 547 414 80,255 71,804 ------------------------------------------------------------ TOTAL PROVED PLUS PROBABLE 39,531 34,764 1,239 988 199,088 178,312 ------------------------------------------------------------ ------------------------------------------------------------
SUMMARY OF PRO-FORMA OIL AND GAS RESERVES AS OF JANUARY 31, 2017 FORECAST PRICES AND COSTS RESERVES ------------------------------------------------------------ NATURAL GAS LIQUIDSTOTAL OIL EQUIVALENT ------------------------------------------------------------ Gross Net Gross Net (Mbbls) (Mbbls) (Mboe) (Mboe) ------------------------------------------------------------ PROVED: Developed Producing 2,969 2,420 30,201 26,413 Developed Non- Producing 12 8 485 423 Undeveloped 1,312 1,198 17,001 15,278 ------------------------------------------------------------ TOTAL PROVED 4,294 3,626 47,686 42,114 PROBABLE 3,241 2,794 33,800 29,775 ------------------------------------------------------------ TOTAL PROVED PLUS PROBABLE 7,535 6,419 81,486 71,890 ------------------------------------------------------------ ------------------------------------------------------------ (1) Immaterial CBM volumes have been included in Conventional Natural Gas.

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Pro-Forma Net Present Values of Future Net Revenue Before Tax (Forecast Prices and Costs)

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PRO-FORMA NET PRESENT VALUES OF FUTURE NET REVENUE BEFORE INCOME TAXES DISCOUNTED AT (%/year) --------------------------------------------- RESERVES 0% 5% 10% CATEGORY ($000s) ($000s) ($000s) --------------------------------------------- PROVED: Developed Producing 698,753 520,506 431,063 Developed Non- Producing 5,520 4,107 3,396 Undeveloped 297,424 233,401 172,847 --------------------------------------------- TOTAL PROVED 1,001,697 758,014 607,306 PROBABLE 939,484 601,454 417,704 --------------------------------------------- TOTAL PROVED PLUS PROBABLE 1,941,180 1,359,468 1,025,011 --------------------------------------------- ---------------------------------------------
PRO-FORMA NET PRESENT VALUES OF FUTURE NET REVENUE BEFORE INCOME TAXES DISCOUNTED AT (%/year) ------------------------------------------------------------ Unit Value Unit Value Before Income Before Income Tax Discounted Tax Discounted at 10% Per at 10% Per RESERVES 15% 20% Year(1) Year(1) CATEGORY ($000s) ($000s) ($/Boe) ($/Mcfe) ------------------------------------------------------------ PROVED: Developed Producing 373,614 332,414 16.32 2.72 Developed Non- Producing 2,929 2,573 8.03 1.34 Undeveloped 127,297 93,876 11.31 1.89 ------------------------------------------------------------ TOTAL PROVED 503,839 428,863 14.42 2.4 PROBABLE 307,596 236,535 14.03 2.34 ------------------------------------------------------------ TOTAL PROVED PLUS PROBABLE 811,435 665,398 14.26 2.38 ------------------------------------------------------------ ------------------------------------------------------------

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Copies of the filed documents may be obtained through SEDAR at www.sedar.com or on Tamarack's website at www.tamarackvalley.ca.

About Tamarack Valley Energy Ltd.

Tamarack is an oil and gas exploration and production company committed to long-term growth and the identification, evaluation and operation of resource plays in the Western Canadian Sedimentary Basin. Tamarack's strategic direction is focused on two key principles - targeting repeatable and relatively predictable plays that provide long-life reserves, and using a rigorous, proven modeling process to carefully manage risk and identify opportunities. The Company has an extensive inventory of low-risk, oil development drilling locations focused in the Cardium and Viking fairways primarily in Alberta that are economic at a variety 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 return while managing its balance sheet.

Abbreviations

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bbls barrels bbls/d barrels per day boe barrels of oil equivalent boe/d barrels of oil equivalent per day Mboe thousands barrels of oil equivalent mcf thousand cubic feet MMcf million cubic feet Mbbls thousand barrels mcf/d thousand cubic feet per day

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Unit Cost Calculation

For the purpose of calculating unit costs, natural gas volumes have been converted to a barrel of oil equivalent ("boe") using six thousand cubic feet equal to one barrel unless otherwise stated. A boe conversion ratio of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion conforms with Canadian Securities Regulators' NI 51-101. Boe's may be misleading, particularly if used in isolation.

Drilling Locations

In this Press Release, the 800 net drilling locations identified include 283 proved locations, 507 proved and probable locations and 293 un-booked locations. Proved locations and probable locations account for drilling locations that have associated proved and/or probable reserves, as applicable. Un-booked locations are internal estimates based on prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Un-booked locations do not have attributed reserves or resources. While certain of the un-booked drilling locations have been de-risked by drilling existing wells in relative close proximity to such un-booked drilling locations, the majority of un-booked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and, if drilled, there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.

Information Regarding Disclosure on Oil and Gas Reserves

The information above provides a summary of the pro-forma combination of Tamarack and the Viking Acquisition. GLJ conducted a modified look ahead summary (the "Modified Look Ahead Summary") on its reserve report as at December 31, 2016, in which the December 31, 2016 report was mechanically updated to January 31, 2017 utilizing 3 Consultants' Average January 1, 2017 pricing. The mechanical update, or "look ahead" was slightly modified so as to include the conversion of existing reserves entities from undeveloped to producing or developed non-producing reserves categories to reflect January 2017 activity. Three Cardium wells in Wilson Creek were converted from proved undeveloped ("PUD") to proved developed producing ("PDP") and one Cardium well in Alder Flats was converted from probable undeveloped ("PBUD") to probable developed non-producing ("PBDNP"). No changes were made to technical reserves volumes or production forecasts for these entities, only their development and production status category, timing and capital costs were adjusted to reflect January 2017 activity. The Modified Look Ahead Summary was combined with the Viking Acquisition Reserves Report, to generate the Pro-Forma Reserves Report effective January 31, 2017. Readers are cautioned that the Pro-Forma Reserves Report is comprised of a manual summation of two independently evaluated reserves reports prepared in accordance with procedures and standards contained in COGEH and with the reserves definitions contained in COGEH and NI 51-101, but with two different effective dates, and that the Modified Look Ahead Summary is a simplified measure that is not consistent with a full reserves evaluation.

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, statements relating to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably produced in the future. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Tamarack relating to prevailing commodity prices, the availability of drilling rigs and other oilfield services and associated cost of such services, the timing of past operations and activities in the planned areas of focus, the drilling, completion and tie-in of wells being completed as planned, the performance of new and existing wells, the application of existing drilling and fracturing techniques, the continued availability of capital and skilled personnel, the ability to maintain or grow the banking facilities and the accuracy of Tamarack's geological interpretation of its drilling and land opportunities. Although management considers these assumptions to be reasonable based on information currently available to it, undue reliance should not be placed on the forward-looking statements because Tamarack can give no assurances that they may prove to be correct.

By their very nature, forward-looking statements are subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures); commodity prices; the uncertainty of estimates and projections relating to production, cash generation, costs and expenses; health, safety, litigation and environmental risks; and access to capital. Due to the nature of the oil and natural gas industry, drilling plans and operational activities may be delayed or modified to react to market conditions, results of past operations, regulatory approvals or availability of services causing results to be delayed.

Please refer to Tamarack's AIF for additional risk factors relating to Tamarack. The AIF 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.

- END RELEASE - 23/03/2017

For further information:
Brian Schmidt
President & CEO
Tamarack Valley Energy Ltd.
Phone: 403.263.4440
www.tamarackvalley.ca
OR
Ron Hozjan
VP Finance & CFO
Tamarack Valley Energy Ltd.
Phone: 403.263.4440

COMPANY:
FOR: TAMARACK VALLEY ENERGY LTD.
TSX SYMBOL: TVE

INDUSTRY: Energy and Utilities - Oil and Gas
RELEASE ID: 20170323CC0006

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All press releases are written by the client and have NO affiliation with the news copy written by The Canadian Press. Any questions that arise due to the content or information provided in the press release should be directed to the company/organization issuing the release, not to The Canadian Press.

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