Tamarack Valley Energy Ltd. (TSX:TVE) has entered into a definitive agreement to acquire Crestwynd Exploration Ltd. for approximately CAD 180 million on December 15, 2021. The consideration consists of CAD 92.6 million in cash, subject to adjustment and the issuance of 26.3 million common shares of Tamarack. In conjunction with the Acquisition, National Bank Financial as syndicate lead, has provided commitments for a separate and additional CAD 100 million credit facility. Upon termination, Crestwynd will pay CAD 10 million payable to Tamarack. The employment of all officers and employees of Crestwynd shall be terminated at the Effective Time and the officers and employees of Crestwynd shall be entitled to receive the Crestwynd Change of Control Payments. 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) and is expected to close on or about February 15, 2022. The transaction is accretive on a per share basis for Tamarack.

As on February 2, 2022, Tamarack Valley announces that it has entered into an underwriting agreement to sell, on a private placement basis, CAD 200 million aggregate principal amount of 7.25% senior unsecured sustainability-linked notes due May 10, 2027. Closing of the Offering is expected to occur on or about February 10, 2022, subject to satisfaction of customary closing conditions. Tamarack intends to use the net proceeds of the Offering to fund a portion of the purchase price for acquisition of Crestwynd Exploration Ltd. and repay amounts outstanding under Tamarack's sustainability linked credit facility. The Notes will eliminate the requirement for the previously announced separate and additional CAD 100 million credit facility from the existing syndicate.

Peters & Co. Limited and RBC Capital Markets are acting as financial advisors to Tamarack with respect to the Acquisition. CIBC Capital Markets and Stifel FirstEnergy are acting as strategic advisors to Tamarack with respect to the Acquisition. Stikeman Elliott LLP is acting as legal counsel to Tamarack with respect to the Acquisition and the SLL Facility. National Bank Financial Inc. is acting as exclusive financial advisor to Crestwynd. Burnet, Duckworth & Palmer LLP is acting as legal counsel to Crestwynd. Nicholas J. Johnson, Nathan M. Trainor, Mark C. Pearson, Kory Cross, Omid Eslami of Stifel FirstEnergy acted as a financial advisor to Tamarack Valley Energy Ltd.

Tamarack Valley Energy Ltd. (TSX:TVE) completed the acquisition of Crestwynd Exploration Ltd. on February 15, 2022.