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TENAZ ENERGY CORP. ANNOUNCES CLOSING OF NOBV ACQUISITION AND UPDATED CORPORATE GUIDANCE
CALGARY, ALBERTA--(Newsfile Corp. - May 1, 2025) - Tenaz Energy Corp. ("Tenaz", "Our", or "We") (...
About this update from Tenaz Energy Corp
[{"type":"text","content":"TENAZ ENERGY CORP. ANNOUNCES CLOSING OF NOBV ACQUISITION AND UPDATED CORPORATE GUIDANCECALGARY, ALBERTA--(Newsfile Corp. - May 1, 2025) - Tenaz Energy Corp. (\"Tenaz\", \"Our\", or \"We\") (TSX: TNZ) is pleased to announce that it has completed the acquisition of 100% of the shares of NAM Offshore B.V. (\"NOBV\") from Nederlandse Aardolie Maatschappij B.V. (\"NAM\"), a joint venture between Shell PLC and ExxonMobil Corporation, and assumed operatorship of NOBV (the \"Acquisition\"). Concurrent with closing of the Acquisition, NOBV has been renamed Tenaz Energy Netherlands B.V. (\"TEN\").Cash at CloseAs a result of free cash flow and other purchase price adjustments from the effective date of January 1, 2024 until May 1, 2025, Tenaz received approximately €15 million cash at closing. Based on preliminary estimates, net working capital of our TEN subsidiary at close is approximately neutral, excluding any future contingent earn-out obligations.Updated 2025 Corporate Guidance Production from the acquired assets is in line with our forecast at the time we announced the Acquisition. The acquired assets produced approximately 11,000 boe/d(1) (99% natural gas) for the first four months of 2025. Production for full-year 2025 (including both the four-month pre-closing and eight-month post-closing periods) is forecasted to be approximately 10,000 boe/d. We will conduct the bulk of our annual maintenance and turnaround activity during May and June, reducing Q2 production to below year-to-date and annual average rates. As a result of this scheduled downtime, production for the eight-month period from the closing date to the end of 2025 is estimated to be approximately 9,500 boe/d. Production for the eight-month period following closing will be included in our 2025 results. On a twelve-month annual average basis, we expect the TEN contribution to be between 6,100 and 6,400 boe/d.We plan to invest $55 to $61 million in the acquired assets for the remainder of 2025, with production benefits beginning primarily in 2026. Approximately 75% of the capital expenditures(2) for the acquired assets will fund drilling and workover activities, with the remainder for facilities projects and maintenance capital. Our revised capital program is expected to be self-funded within both our Netherlands and Canada business units. Updated 2025 capital expe...