Tamarack Valley Energy (TVE.TO) has closed the sale of its Charlie Lake assets for cash consideration of C$804.0 million, before closing adjustments, the company said on Tuesday.
Tamarack and the counterparty completed the deal two weeks ahead of expectations following the receipt of regulatory approvals.
The deal has eliminated Tamarack's net debt with a portion of the net proceeds initially being used to repay amounts drawn under the credit facility.
The net proceeds will also support the acceleration of growth and waterflood development activities in the Clearwater.
The company expects to exit the second quarter in a net cash position of greater than $125 million and available funding of $1.3 billion, including cash on hand of over $400 million and undrawn credit facility capacity of $875.0 million.
Tamarack is now a pure-play Clearwater producer generating about 54,000 barrels of oil equivalent per day of low-cost, high-margin production, with an inventory of primary drilling and waterflood expansion opportunities in the Clearwater fairway.
The deal has an effective date of April 1. As a result of the accelerated closing date, Charlie Lake production has been crystallized at about 8,000 boe per day for 2026.
Tamarack lowered its full-year 2026 production guidance to 61,500 - 63,000 boe per day, down from the previous guidance of 62,000 - 64,000 boe per day. Clearwater production guidance for 2026 remains unchanged at 53,500 - 55,000 boe per day.