RETRANSMISSION: Tenth Avenue Petroleum announces increase in production by 61% and operational update

CALGARY, AB – March 7, 2023 / Tenth Avenue Petroleum Corp. (“TPC” or the “Company”) (TSXV:TPC) is pleased to provide results from its successful re-entry of the 102/6-11-15-26W4 (BPO 85%, APO 70%) natural gas well in the upper Bow Island formation, located in the area of Parkland, Alberta.

Highlights

• The 102/6-11 re-entry well was placed on production on January 30, 2023 and based on estimated field receipts has averaged IP30 of 60 boe/d gross (51 boe/d net) over its initial 30 days of production;
• Based on net capital expenditures of $530,000 the implied capital efficiency is approximately $10,392 per flowing boe;
• 61% increase in February field production to 193 boe/d (67% Oil/NGLs) compared to Q3/22 of 120 boe/d (93% Oil/NGLs) resulting in an increase in gas weighting from 7% to approximately 33%;
• Management believes that similar upside exists from the lower Sunburst formation that is currently suspended.

In December 2022, the Company completed the construction of a 2.30 km pipeline and required instrumentation from the 11-11 pad site to the gathering system. The Company mobilized a tester package to conduct an initial test, at which time the Company elected to proceed with the tie-in.

On January 30^th, 2023 the well commenced production and over it’s initial 30 days of production averaged approximately 60 boe/d gross (51 boe/d net) based on estimated field receipts from the Bow Island formation, which is in-line with management’s expectations.

Based on the net capital expenditures of $530,000, the implied capital efficiency of the new production additions is $10,392 per flowing boe. Although the Company only placed the upper Bow Island zone on production, the lower Sunburst zone is showing similar characteristics on logs.

The Companies current production based on field data for the month of February is 193 boe/d. The Company underwent some minor production curtailment at the Murray Lake field between February 24^th and March 3^rd due to facility maintenance. The Company expects Q1/23 production to be in the 155-170 boe/d range despite the Murray Lake downtime.

Tenth Avenue President & CEO Cameron MacDonald commented: “We are pleased with the preliminary results from the re-entry of the 102/6-11 well. Recompleting this non-producing well is another example of our ability to identify and execute on undervalued opportunities that increases production, reserves and cashflow per share in a capital efficient and responsible manner.”