Tamarack Valley Energy Ltd. (TSX:TVE) entered into a definitive agreement to acquire Rolling Hills Energy Ltd. for CAD 94.1 million on April 21, 2022. The consideration consists of CAD 46.5 million in cash, subject to adjustment and the issuance of 9,276,623 common shares of Tamarack at a deemed price of CAD 5.0126 per Tamarack Share. Tamarack has also entered into additional agreements to further consolidate its Clearwater position through the addition of undeveloped lands in the Peavine area. The purchase price implies a 1.5x annualized operating netback multiple with a free funds flow yield in excess of 30%. Assets acquired in this transaction will be included in the Clearwater oil CGU. The transaction is subject to certain customary conditions and regulatory and other approvals, including the approval of the Toronto Stock Exchange and the Commissioner of Competition pursuant to the Competition Act (Canada), the TSX shall have conditionally approved for listing all of the Tamarack Shares issuable to the Rolling Hills Shareholders pursuant to the Arrangement, subject to approval of offer by Rolling Hills Energy's shareholders and is expected to close on or about June 10, 2022. The transaction is accretive on a per share basis to forecast 2023 adjusted funds flow by 5% and free funds flow by 7% at strip pricing, while maintaining a resilient sustaining funds flow breakeven, including the base dividend of approximately CAD 35 per barrel WTI long term. Peters & Co. Limited and RBC Capital Markets are acting as financial advisors and Sony Gill, Chrysten E. Perry and Julie D'Avignon of Stikeman Elliott LLP is acting as legal counsel to Tamarack Valley Energy Ltd. National Bank Financial Inc. is acting as financial advisor to Rolling Hills and Burnet, Duckworth & Palmer LLP is acting as legal counsel.

As of May 10, 2022, the Rolling Hills Board has unanimously approved the transaction and has recommend that Rolling Hills Shareholders vote in favor of the Arrangement Resolution.

Tamarack Valley Energy Ltd. (TSX:TVE) completed the acquisition of Rolling Hills Energy Ltd. on June 10, 2022.