Tenaz Energy (OTCPK:ATUU.F) Earnings Call Presentation

GEMS Acquisition Highlights - Tenaz acquired GEMS for US$244 million ($339 million CAD) as of December 31, 2024 [78] - The acquisition includes cash consideration of US$232 million ($322 million CAD) and equity consideration of US$12 million ($17 million CAD) [78] - GEMS' Total Proved Plus Probable (TPP) reserves are 193 million barrels of oil equivalent (MMboe) with an after-tax NPV10 of $590 million CAD [79] - The acquisition is expected to have an after-tax payout of less than 3 years [80] - The acquisition provides high-growth and high-return asset base [105, 108] GEMS Asset Details - GEMS' N05-A platform commenced production in March 2025, producing at a choked rate of 76 million cubic feet per day (MMcf/d) gross (25 MMcf/d net to Tenaz) [42] - Production is anticipated to increase to approximately 127 MMcf/d gross (42 MMcf/d net to Tenaz) in 2026 after drilling two more development wells [42] - GEMS has 2P reserves totaling 193 MMboe and NPV10% ATAX of $590 million CAD [42] - The N04-A field (27% net to Tenaz) tested 50 MMcf/d in 2021 [67] - The N04-C field (27% net to Tenaz) tested 21 MMcf/d in 2023 [67] 2025 Guidance and Hedging - The company's 2025 average production guidance is 9,500 - 10,000 boe/d [95] - The company's 2025 D&D capital expenditure guidance is $100 - $110 million CAD [95] - The company's corporate hedge position is 41% in Q4 2025, 32% in 2026, and 10% in 2027 [102]