Q4 2025 Tenaz Energy Corp Earnings Call

We're listening to our discussion of our Q4 and year end 25 results.

Anthony Marino: Hello, I'm Anthony Marino, President and CEO of Tenaz Energy. Thanks for listening to our discussion of our Q4 and year-end 2025 results. I'd ask you first to note our advisories on forward-looking statements. I'll start with a brief summary of our operating and financial results. Looking at 2025 as a whole, first of all, very significant event, closing two transactions that gave us a much greater scale in the Netherlands. The first being the NAM Offshore BV transaction or NOBV. We closed it in May 2025. This transaction had been announced in July 2024 at an effective date of 1 January 2024. We closed it early, became an operator in Netherlands for the first time, renamed the entity Tenaz Energy Netherlands or TEN, and that's how we're gonna refer to it most of the time going forward.

Tony Marino: Hello, I'm Anthony Marino, President and CEO of Tenaz Energy. Thanks for listening to our discussion of our Q4 and year-end 2025 results. I'd ask you first to note our advisories on forward-looking statements. I'll start with a brief summary of our operating and financial results. Looking at 2025 as a whole, first of all, very significant event, closing two transactions that gave us a much greater scale in the Netherlands. The first being the NAM Offshore BV transaction or NOBV. We closed it in May 2025.

I'd ask you first to note our advisory on forward looking statements.

So I'll start with a brief summary of our operating and financial results.

Looking at 2025 as a whole first of all very significant event closing two transactions that gave us.

Much greater scale in the Netherlands, the first being the non offshore BV transaction or <unk>. We closed it in May 25. This transaction had been announced in July 24 at an effective date of January one 'twenty four.

Tony Marino: This transaction had been announced in July 2024 at an effective date of 1 January 2024. We closed it early, became an operator in Netherlands for the first time, renamed the entity Tenaz Energy Netherlands or TEN, and that's how we're gonna refer to it most of the time going forward. Second significant transaction was a purchase of a private company, Hansa Hydrocarbons Limited. Here we acquired interests in the GEMS project or Gateway to the Ems at the Netherlands Germany maritime border.

We closed it early became.

Became an operator in the Netherlands for the first time.

Renamed the entity to <unk> energy, Netherlands, or 10, and that's how we're going to refer to it most of the time going forward.

Second significant transaction was a purchase of a private company Hamzah hydrocarbons limited.

Anthony Marino: Second significant transaction was a purchase of a private company, Hansa Hydrocarbons Limited. Here we acquired interests in the GEMS project or Gateway to the Ems at the Netherlands Germany maritime border. This transaction was signed, closed, and announced in October 2025. Significant acquisition, big growth project, one of the most high-quality projects we think anywhere in the North Sea. At the same time that we did the GEMS transaction, we placed an additional tranche of our senior unsecured notes, generating gross proceeds of CAD 179 million. We used these proceeds plus cash that we already had to pay for GEMS. These are the five-year notes originally placed in November 2024, with maturity if they go all the way to maturity in November 2029.

Here, we acquired interests in the gems project or gateway to the EMS at the Netherlands, Germany Maritime border.

This transaction was signed closed and announced in October 25 <unk>.

Tony Marino: This transaction was signed, closed, and announced in October 2025. Significant acquisition, big growth project, one of the most high-quality projects we think anywhere in the North Sea. At the same time that we did the GEMS transaction, we placed an additional tranche of our senior unsecured notes, generating gross proceeds of CAD 179 million. We used these proceeds plus cash that we already had to pay for GEMS. These are the five-year notes originally placed in November 2024, with maturity if they go all the way to maturity in November 2029.

Significant acquisitions the growth project one of the most high quality projects, we think anywhere in the North Sea.

At the same time that we did the gems transaction, we placed an additional tranche of our senior unsecured notes.

Generating gross proceeds of $179 million, we use these proceeds plus cash that we already had to pay for gems.

Okay.

These are the five year notes originally placed in November 24.

The maturity if they go all the way to maturity in November 29.

At the same time.

<unk>.

Established a syndicated set of credit facilities totaling $115 million.

Anthony Marino: At the same time, we established a syndicated set of credit facilities totaling CAD 115 million with National Bank in the lead, Canadian Imperial Bank of Commerce, and Goldman Sachs in the syndicate. By the way, we have since upsized this facility subsequent to the end of the year, by bringing in DNB, a significant Norwegian bank, and now that facility has a total commitment amount of CAD 150 million. Our NCIB continues. During 2025, we retired 336,000 shares at an average price of CAD 18.25 per share. If you look all the way back to the inception of the NCIB program in August 2022, we've now retired 2.5 million shares at an average price of CAD 5.41 per share.

Tony Marino: At the same time, we established a syndicated set of credit facilities totaling CAD 115 million with National Bank in the lead, Canadian Imperial Bank of Commerce, and Goldman Sachs in the syndicate. By the way, we have since upsized this facility subsequent to the end of the year, by bringing in DNB, a significant Norwegian bank, and now that facility has a total commitment amount of CAD 150 million. Our NCIB continues. During 2025, we retired 336,000 shares at an average price of CAD 18.25 per share.

With National Bank in the lead.

Canadian Imperial Bank of Commerce, and Goldman Sachs in the syndicate.

By the way we have since Upsized. This facility subsequent to the end of the year.

By bringing in Dnb significant Norwegian bank and now that facility has a total.

The commitment amount of $150 million.

Our NCI continues.

During 25 2025, we retired 336000 shares at an average price of $18 25 per share. If you look all the way back to the inception of the <unk> program. In August 22, we've now retired $2 5 million shares at an average price of $5 41 per share.

Tony Marino: If you look all the way back to the inception of the NCIB program in August 2022, we've now retired 2.5 million shares at an average price of CAD 5.41 per share. We announced in February that we had received approval to extend the NCIB for another year. Our total return in the market, 89% in 2025. We continue to be very honored by having this kind of performance and this kind of confidence out of our shareholders and market participants. Let's turn to a review of our operating and financial results. Production in Q4 2025 was about 15,600 BOED.

We announced in February that we had.

Received approval to extend the NCI be for another year.

Anthony Marino: We announced in February that we had received approval to extend the NCIB for another year. Our total return in the market, 89% in 2025. We continue to be very honored by having this kind of performance and this kind of confidence out of our shareholders and market participants. Let's turn to a review of our operating and financial results. Production in Q4 2025 was about 15,600 BOED. That's up from 11,800 BOED in Q3, driven primarily by adding GEMS. Production for the full year 2025 averaged about 9,600 BOED. That was up from 2,700 BOED in 2024. Again, this is driven by the acquisitions. A little bit of growth in Canada as well.

Our total return in the market, 89% in 2025, we continue to be very honored by having this kind of performance in this kind of confidence out of our shareholders and market participants.

Let's turn to a review of our operating and financial results production. In Q4 25 was about 15600 BOE a day, that's up from 11800 Boe.

In Q3, driven primarily by adding gems.

Tony Marino: That's up from 11,800 BOED in Q3, driven primarily by adding GEMS. Production for the full year 2025 averaged about 9,600 BOED. That was up from 2,700 BOED in 2024. Again, this is driven by the acquisitions. A little bit of growth in Canada as well. Keeping in mind here that we only count production and the other cash flow metrics from the acquired assets after close. That was from May on for NOBV, now called TEN, and that's from early October on for the GEMS assets.

For the full year 'twenty.

25 averaged about 9600 Boe.

That was up from 2700 Boe.

24.

Again, this is driven by the acquisitions, a little bit of growth in Canada as well.

Keep in mind here that we only count.

Production in the other.

Anthony Marino: Keeping in mind here that we only count production and the other cash flow metrics from the acquired assets after close. That was from May on for NOBV, now called TEN, and that's from early October on for the GEMS assets. Looking at funds flow from operations or FFO, Q4 2025 was CAD 62 million, up substantially from the CAD 40 million in Q3. Again, the primary driver there would be bringing in the GEMS assets. FFO for 2025 was CAD 120 million, nearly a five-fold increase from our 2024 level, driven again by the acquisitions. Net income in Q4 2025 of CAD 108 million was up substantially from Q3.

Cash flow.

Metrics from the acquired assets after close so that was from May on four <unk> alcohol 10, and that's from.

Early October on for the <unk> assets.

Looking at the funds flow from operations or <unk>, Q4, 25 was $62 million.

Tony Marino: Looking at funds flow from operations or FFO, Q4 2025 was CAD 62 million, up substantially from the CAD 40 million in Q3. Again, the primary driver there would be bringing in the GEMS assets. FFO for 2025 was CAD 120 million, nearly a five-fold increase from our 2024 level, driven again by the acquisitions. Net income in Q4 2025 of CAD 108 million was up substantially from Q3. Net income for the full year was CAD 316 million as compared to a net loss of about CAD 8 million in 2024.

<unk>.

Substantially from the $40 million in Q3 again, the primary driver there would be bringing in the gyms assets.

<unk> 25 was 120 million nearly a fivefold increase from our 24 level driven again by the acquisitions.

Net income.

In Q4, 25 of $108 million was up substantially from Q3 net.

Net income for the full year was $316 million as compared to a net loss of about $8 million and 24.

Anthony Marino: Net income for the full year was CAD 316 million as compared to a net loss of about CAD 8 million in 2024. Both the quarterly change in net income and the annual change were really primarily driven by the net income contributions that we made from TEN and GEMS once they had closed, and also a $192 million gain on acquisition that we recorded in Q2 as a result of closing the NOBV acquisition. In addition, we benefited from a remeasurement of a contingent consideration in the NOBV deal, about a CAD 70 million net income benefit from that. This is just re-estimating the amount of earn-out. We intend to have a larger capital program going forward, I think, than we originally assumed.

Both the quarterly change in net income and the annual change.

We're really primarily driven by.

Tony Marino: Both the quarterly change in net income and the annual change were really primarily driven by the net income contributions that we made from TEN and GEMS once they had closed, and also a $192 million gain on acquisition that we recorded in Q2 as a result of closing the NOBV acquisition. In addition, we benefited from a remeasurement of a contingent consideration in the NOBV deal, about a CAD 70 million net income benefit from that. This is just re-estimating the amount of earn-out. We intend to have a larger capital program going forward, I think, than we originally assumed.

The net income contributions that we made from 10 and gems.

Once they had closed.

And also a $192 million gain on acquisition that we recorded in Q2 as a result of closing the <unk> acquisition. In addition, we benefited from a remeasurement of the considered contingent consideration in the <unk> deal about.

$70 million.

Net income benefit from that and this is.

Just re estimating the amount of earn out.

We.

Intend to have a larger capital program going forward I think than we originally assumed it's an advantage for us.

In the structure of the earn out allows us.

Anthony Marino: It's an advantage for us in the structure of the earn-out allows us to have higher investment levels and a portion of that goes against the earn-out to reduce the earn-out payment. These were the primary drivers of the net income changes both for Q4 and for the year as a whole. We finished year-end 2025 with net debt of about CAD 345 million. That of course is up substantially from CAD 55 million that we had at Q3 2025 driven really by the acquisition of GEMS in Q4, which we used cash and consumed cash, and also we took on additional debt to get that transaction done. Net debt stays, we think, at quite a conservative level.

Tony Marino: It's an advantage for us in the structure of the earn-out allows us to have higher investment levels and a portion of that goes against the earn-out to reduce the earn-out payment. These were the primary drivers of the net income changes both for Q4 and for the year as a whole. We finished year-end 2025 with net debt of about CAD 345 million. That of course is up substantially from CAD 55 million that we had at Q3 2025 driven really by the acquisition of GEMS in Q4, which we used cash and consumed cash, and also we took on additional debt to get that transaction done.

To have higher investment levels and a portion of that goes against the earn out to reduce the earn out payment.

So these were the primary drivers of the net income changes both for Q4 and for the year as a whole.

We finished year end 25 with.

Net debt of about $345 million.

And that of course is up substantially from the $55 million that we had at Q3 25.

Driven really by the acquisition of Gems in Q4, which will use cash.

And.

Consumed cash and also we took on additional debt to get that transaction done.

Net debt stays we think.

Quite a conservative level, if you compare this $345 million to an annualized number using our Q4 <unk> the ratio would be one four times.

Tony Marino: Net debt stays, we think, at quite a conservative level. If you compare this CAD 345 million to an annualized number using our Q4 FFO, the ratio would be 1.4 times. If you look at it in terms of today's strip, that debt level would be around 1 times FFO. Okay, let's talk about our operations. Look at this first in terms of what we did in Netherlands in Q4 2025. On our operated assets, we had two major capital activities going.

Anthony Marino: If you compare this CAD 345 million to an annualized number using our Q4 FFO, the ratio would be 1.4 times. If you look at it in terms of today's strip, that debt level would be around 1 times FFO. Okay, let's talk about our operations. Look at this first in terms of what we did in Netherlands in Q4 2025. On our operated assets, we had two major capital activities going. The first is that we initiated a barge workover campaign, just working on the existing well stock, generally, pretty high rate of return activities that we'll do here because, of course, it requires much less capital to work on an existing well than to drill a new one.

If you look at it in terms of today's strip.

That debt level would be around one times.

<unk>.

Okay, Let's talk about our operations look at this first in terms of what we did in Netherlands in Q4, 25%.

On our operated assets, we had two major capital activities going the first is that we initiated a barge workover campaign.

Just working on the existing well stock generally.

Tony Marino: The first is that we initiated a barge workover campaign, just working on the existing well stock, generally, pretty high rate of return activities that we'll do here because, of course, it requires much less capital to work on an existing well than to drill a new one. Our estimate is that we restored about 13 million cubic feet a day gross production, as a result of doing these workovers. The second major activity was mobilizing the Shelf Drilling Winner rig. It arrived in November. We spudded our K07-FB-103 well in December.

The high rate of return activities that will do here is of course it requires much less capital to work on an existing well then to drill a new one.

Our estimate is that we restored about 13 million cubic feet a day gross production.

Anthony Marino: Our estimate is that we restored about 13 million cubic feet a day gross production, as a result of doing these workovers. The second major activity was mobilizing the Shelf Drilling Winner rig. It arrived in November. We spudded our K07-FB-103 well in December. That well, again, we're operator, and we have a 45.6% working interest. I'll talk more about the results of that well in just a minute. The non-operated activity, first at GEMS. The N-05-A platform was electrified to use power from the Riffgat Wind Farm on the German side of the maritime border.

As a result of doing these workovers.

The second major activity was <unk>.

<unk> the shelf drilling winter rig.

It arrived in November we spud it or K seven.

At the 103, well in December that well again, we're operator, and we have a 45, 6% working interest.

Tony Marino: That well, again, we're operator, and we have a 45.6% working interest. I'll talk more about the results of that well in just a minute. The non-operated activity, first at GEMS. The N-05-A platform was electrified to use power from the Riffgat Wind Farm on the German side of the maritime border.

And I'll talk more about the results of that well in just a minute.

The.

Non operated activity first a gems.

The <unk>.

<unk> platform was electrified to use power from the risk at wind farm on the German side of the maritime border.

The rig is well that is now they are the borrower prospector, one which arrived in December is also powered by the wind farm, giving us very very low emissions levels from this project.

Anthony Marino: The rig as well that is now there, the Borr Prospector 1, which arrived in December, is also powered by the wind farm, giving us very, very low emissions levels from this project. The other non-operated activity of significance was at the L10 license, where Eni spudded what we call the Malachite well, where we have a 21% working interest, spudding that well in December.

Tony Marino: The rig as well that is now there, the Borr Prospector 1, which arrived in December, is also powered by the wind farm, giving us very, very low emissions levels from this project. The other non-operated activity of significance was at the L10 license, where Eni spudded what we call the Malachite well, where we have a 21% working interest, spudding that well in December.

The other.

Other non operated activity of significance was at the <unk> license, where Eni spud.

What we call the malachite, well, where we have a 21% working interest.

Putting that well in December.

Yeah.

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Scroll forward to Q1 26 for the Netherlands activity.

Anthony Marino: Let's scroll forward to Q1 2026 for the Netherlands activity. We were able to drill and complete our operated well at K07. This was a well that was not in our reserve books as of the end of 2025. It was a exploratory well, a new fault block, and a prospective resource location. Well was successful. We encountered significant pay in the Rotliegend Sandstone. We tested that well at a rate up to 23 million cubic feet a day and about a 13 barrel per million condensate yield for not quite 300 barrels a day of condensate flow rate. We're quite happy with these results, and we're proceeding to tie into that well at that existing platform.

Tony Marino: Let's scroll forward to Q1 2026 for the Netherlands activity. We were able to drill and complete our operated well at K07. This was a well that was not in our reserve books as of the end of 2025. It was a exploratory well, a new fault block, and a prospective resource location. Well was successful. We encountered significant pay in the Rotliegend Sandstone. We tested that well at a rate up to 23 million cubic feet a day and about a 13 barrel per million condensate yield for not quite 300 barrels a day of condensate flow rate.

We were able to drill and complete our operated well at <unk> seven.

This was a well that was not in our reserve books as of the end of 'twenty five.

It was a exploratory well.

Fault block.

And a prospective resource location well was successful we encountered.

Significant pay in the <unk> sandstone.

We've tested that well.

At a rate up to 23 million cubic feet a day.

And about.

13 barrel per million.

Honda yield for not quite 300 barrels a day of condensate.

Right. So we're quite happy with these results and we're proceeding to tie into that well at that existing platform.

Tony Marino: We're quite happy with these results, and we're proceeding to tie into that well at that existing platform. I think it speaks to the quality of our resource book, our prospective resource book specifically here, in that well, even as of the end of 2025, was not on the reserve books, coming directly from prospective resource at a later date. We presume coming from prospective resource into booked reserves. We continue our barge workovers, as I related for Q4 2025. The first development well, infill well at GEMS, was drilled and is now being completed.

And again I think it speaks to the quality of our AR.

Resource book, our prospective resource book, specifically here and that that will even us as of the end of 'twenty five.

Anthony Marino: I think it speaks to the quality of our resource book, our prospective resource book specifically here, in that well, even as of the end of 2025, was not on the reserve books, coming directly from prospective resource at a later date. We presume coming from prospective resource into booked reserves. We continue our barge workovers, as I related for Q4 2025. The first development well, infill well at GEMS, was drilled and is now being completed. We have a one-third working interest in that well, operated by ONE-Dyas. This is a development well in the same pool as the existing N-5A producing well that is making around 75 million cubic feet a day.

Was not on the reserve books coming directly from perspective.

At a later date.

Presume coming from perspective.

Source into booked reserves.

We continue our barge workovers as.

Related for Q4 'twenty five.

The.

First development well.

Infill well at gems.

Was drilled and is now being completed we have a one third working interest in that well operated by <unk>.

Tony Marino: We have a one-third working interest in that well, operated by ONE-Dyas. This is a development well in the same pool as the existing N-5A producing well that is making around 75 million cubic feet a day. The Eni well, called Malachite, was drilled and is now being completed. The other area of activity, of course, is in Canada, and not much to report for Q4 there, but Q4 2025. In Q1 2026, we drilled and completed our two Ellerslie wells. These are multilaterals with no fracs. Those wells are just now going on production. Actually, we're now in the process of completing a single lateral horizontal.

This is a development well in the same pool is the existing <unk> producing well it is making around 75 million cubic feet a day.

The Eni well.

Called Malachite was drilled and is now being completed.

Anthony Marino: The Eni well, called Malachite, was drilled and is now being completed. The other area of activity, of course, is in Canada, and not much to report for Q4 there, but Q4 2025. In Q1 2026, we drilled and completed our two Ellerslie wells. These are multilaterals with no fracs. Those wells are just now going on production. Actually, we're now in the process of completing a single lateral horizontal. This will be a multi-stage frac well in the Sparky location, and we expect to complete that well this month. Now let's turn to our year-end 2025 reserves and resources.

The other area of activity of course is in Canada.

Not much to report for Q4, there, but Q4 'twenty five but in Q1 'twenty six.

We drilled and completed our two ehlers lease elderly wells. These are multi laterals with no fracs.

Those wells are just now going on production.

And we.

Begin drilling.

The actually we are now in the process of completing.

A single lateral horizontal this will be a multi stage frac well.

In the Sparky location, and we expect to complete that well this month.

Tony Marino: This will be a multi-stage frac well in the Sparky location, and we expect to complete that well this month. Now let's turn to our year-end 2025 reserves and resources. Looking at first of all at our PDP reserves, we got up to 32 million BOE as of the end of 2025, a manifold increase over the year-end 2024 report, of course that is driven by the acquisitions. That gave us, including the acquisitions, a 913% reserve replacement ratio. Again, a real large number given that we had a pretty small reserve base in the year-end 2024 report.

So now, let's turn to our year end 'twenty five reserves and resources.

Looking at first of all at our PDP reserves.

Got up to 32 million Boe.

Anthony Marino: Looking at first of all at our PDP reserves, we got up to 32 million BOE as of the end of 2025, a manifold increase over the year-end 2024 report, of course that is driven by the acquisitions. That gave us, including the acquisitions, a 913% reserve replacement ratio. Again, a real large number given that we had a pretty small reserve base in the year-end 2024 report. At what we think is a very good FD&A number, so both development and acquisition activities at CAD 16.76 per BOE and a recycle ratio of 2.8 times. If you look at...

As of the end of 'twenty five many fold increase over the.

Year end 'twenty four report of course that is driven by the acquisitions.

That gave us including the acquisitions.

913% reserve replacement ratio again, a real large number.

Given that we had a pretty small reserve base in the <unk>.

Year end 'twenty four report.

At what we think is a very good ft MD&A numbers, so both development and acquisition activities.

Tony Marino: At what we think is a very good FD&A number, so both development and acquisition activities at CAD 16.76 per BOE and a recycle ratio of 2.8 times. If you look at... I'll skip ahead of the 1P and just go to the 2P reserve book, reaching nearly 92 million BOE at the end of the year. Again, a manyfold increase over what we had in the year-end 2024 report. That is a 22x reserve replacement ratio, at a finding development and acquisition cost of about CAD 13.97 per BOE. A recycle ratio, again, we think quite strong at 3.4 times.

At <unk>.

$16 76 per Boe.

And a recycle ratio of two eight times.

If you look at I'll Skip ahead of the <unk> and just go to the to be preserved book, reaching nearly 92 million Boe.

Anthony Marino: I'll skip ahead of the 1P and just go to the 2P reserve book, reaching nearly 92 million BOE at the end of the year. Again, a manyfold increase over what we had in the year-end 2024 report. That is a 22x reserve replacement ratio, at a finding development and acquisition cost of about CAD 13.97 per BOE. A recycle ratio, again, we think quite strong at 3.4 times. Our reserve life index generally increased up substantially at the PDP level to 5.7 years. It was up at the 1P level, not quoted on this slide. The 2P RLI was actually flat at 16.2 years. We had a big increase in reserves, but we also had a big increase in 2P reserves.

At the end of the year again on many fold increase over what we had in the year end 'twenty four report.

That is a 22 ex reserve replacement ratio.

At a.

Finding finding development and acquisition cost.

Of about $13 97 per Boe.

A recycle ratio again, we think quite strong at three four times.

Our reserve life Index generally increased.

Up substantially at the PTP level 257 years, it was up at the <unk> level not quoted on this slide.

Tony Marino: Our reserve life index generally increased up substantially at the PDP level to 5.7 years. It was up at the 1P level, not quoted on this slide. The 2P RLI was actually flat at 16.2 years. We had a big increase in reserves, but we also had a big increase in 2P reserves. We also had a big increase in Q4 production, and that is why, with both of those going up by the same fold, we maintain the same RLI. A strong one, we think, at just over 16 years. The 2P after-tax NPV10 using the three consultants' average price deck reached CAD 1.68 billion.

The two P. RLI was actually flat at $16 two years, we had a big increase in.

Reserves, but we also had a.

<unk> and.

<unk> reserves, we also had a big increase in Q4 production and that is why with both of those going up by the same.

Anthony Marino: We also had a big increase in Q4 production, and that is why, with both of those going up by the same fold, we maintain the same RLI. A strong one, we think, at just over 16 years. The 2P after-tax NPV10 using the three consultants' average price deck reached CAD 1.68 billion. Of course, this is way up from a little bit over CAD 200 million that we had in the year-end 2024 report as the two major acquisitions in the Netherlands went on the books at year-end 2025. Our resource report is also quite important to us. The contingent resources, these are discovered pools, at the 2C level, were 24 million BOE roughly at the end of 2025.

So.

<unk>.

We maintain the same ROI a strong one we think at just over 16 years.

And the.

Two P. A tax NPV 10, using the three consultant average price deck.

Reached 168 billion of course, this way up from the little bit over $200 million that we had at year end 'twenty four report as the two major acquisitions in Netherlands.

Tony Marino: Of course, this is way up from a little bit over CAD 200 million that we had in the year-end 2024 report as the two major acquisitions in the Netherlands went on the books at year-end 2025. Our resource report is also quite important to us. The contingent resources, these are discovered pools, at the 2C level, were 24 million BOE roughly at the end of 2025. Included with this was an economic evaluation of about half of those contingent projects, done by our independent reserve and resource evaluator, McDaniel, with an NPV on those economically evaluated projects of about CAD 150 million.

Went on the books at year end 'twenty five.

Our resource report is also quite important to us.

The kantar.

Contingent resources these are discovered goals.

At the two C level.

Were 24 million barrels equivalent roughly at the end of <unk>.

25.

Included.

This was a economic <unk>.

Devaluation of about half of those contingent projects done by our independent reserve and resource Devaluated Mcdaniel.

Anthony Marino: Included with this was an economic evaluation of about half of those contingent projects, done by our independent reserve and resource evaluator, McDaniel, with an NPV on those economically evaluated projects of about CAD 150 million. Turning to the prospective resource book, at the end of 2025, we had prospective resources of 101 million barrels equivalent. Again, here, McDaniel did a full economic evaluation of about half of the prospective resource projects, those with an after-tax NPV estimated at about CAD 734 million.

With an NPV on those economically.

The weighted projects of about $150 million.

Turning to the risk perspective.

Prospective resource book at the end of 'twenty five.

Tony Marino: Turning to the prospective resource book, at the end of 2025, we had prospective resources of 101 million barrels equivalent. Again, here, McDaniel did a full economic evaluation of about half of the prospective resource projects, those with an after-tax NPV estimated at about CAD 734 million. We show in the two graphs on the right side of the slide just how reserves at all three levels, PDP, 1P, and 2P, have arisen significantly year after year and with the same kind of a trajectory for after-tax NPV10 in the year-end reports at each of those reserve categories.

We had prospective resources of 101 million barrels equivalent.

Again here Mcdaniel did a full economic evaluation of about half of the.

Perspective.

Resource projects those with a a tax NPV estimated at about 734.

<unk>.

We show on the two graphs on the right side of the slide just how reserves at both at all three levels PDP, <unk> and <unk> have risen significantly year after year and.

Anthony Marino: We show in the two graphs on the right side of the slide just how reserves at all three levels, PDP, 1P, and 2P, have arisen significantly year after year and with the same kind of a trajectory for after-tax NPV10 in the year-end reports at each of those reserve categories. Turn to slide 9 of the presentation. I'll just cover this very briefly. We show a buildup on a per share basis for the reserve categories PDP, 1P, and 2P. Volumes on the top half of the slide and the per share values, after-tax NPV10 in the independent report. This evaluated at the three consultant average price deck.

With the same.

Kind of.

Trajectory for.

<unk> NPV 10 in the year and reports at each of those.

Reserve categories.

Turn to slide nine of the presentation I'll just cover those very briefly we show a buildup.

Tony Marino: Turn to slide 9 of the presentation. I'll just cover this very briefly. We show a buildup on a per share basis for the reserve categories PDP, 1P, and 2P. Volumes on the top half of the slide and the per share values, after-tax NPV10 in the independent report. This evaluated at the three consultant average price deck. Keep in mind that these per share numbers do not have a deduction of debt, so they're not NAV numbers from the reserve report.

On a per share basis for the reserve categories PDP <unk>.

Volumes in the top half of the slide and the per share values.

<unk> PV 10, and the independent report.

<unk> evaluated at the three.

Three consultant average price deck.

Keep in mind that these per share numbers do not have a deduction of debt. So theyre not NAV numbers from the reserve report.

Anthony Marino: Keep in mind that these per share numbers do not have a deduction of debt, so they're not NAV numbers from the reserve report. We further show as you move to the right two columns, the quantities in the top, million barrels equivalent for 2C contingent resource and the risked mean prospective resource. We show in the bottom half the per share values associated with each of these contingent and prospective resource categories for the economically evaluated portion of the contingent and prospective projects. The point here is that roughly half, a little bit over half of the contingent projects and the prospective projects were taken all the way to an economic evaluation, with the resulting estimated per share values as indicated on this slide.

We further show as you move to the <unk>.

Right two columns.

Tony Marino: We further show as you move to the right two columns, the quantities in the top, million barrels equivalent for 2C contingent resource and the risked mean prospective resource. We show in the bottom half the per share values associated with each of these contingent and prospective resource categories for the economically evaluated portion of the contingent and prospective projects.

<unk>.

Quantities in the top 2 million barrels.

Evelyn for.

To see contingent resource.

And the risk mean prospective resource.

We show in the bottom half the.

Per share values.

Associated with each of these contingent and prospective resource categories for the value economically evaluated portion of the contingent perspective.

<unk> and the point here is that.

Roughly half a little bit over half of the contingent.

Tony Marino: The point here is that roughly half, a little bit over half of the contingent projects and the prospective projects were taken all the way to an economic evaluation, with the resulting estimated per share values as indicated on this slide.

Projects in the prospective projects were taken all the way to an economic evaluation.

With the resulting estimated.

Per share values as indicated on this slide.

Start to speak like a top manager three phrases that kill your first impression literally it's amazing to be honest I used to speak like that too I had strong ideas, but they came out wrapped in fluff hesitations filler words generic phrases in the worst part people stop listening have.

[Narrator 2]: Start to speak like a top manager. Three phrases that kill your first impression, literally. It's amazing. To be honest, I used to speak like that too. I had strong ideas, but they came out wrapped in fluff, hesitations, filler words, generic phrases, and the worst part, people stopped listening halfway.

[Video Narrator]: Start to speak like a top manager. Three phrases that kill your first impression, literally. It's amazing. To be honest, I used to speak like that too. I had strong ideas, but they came out wrapped in fluff, hesitations, filler words, generic phrases, and the worst part, people stopped listening halfway.

And the next section of this discussion I would like to turn to European gas fundamentals and really this is kind of an abridged section taken from our bigger corporate deck.

Anthony Marino: In the next section of this discussion, I'd like to turn to European gas fundamentals. Really, this is kind of an abridged section taken from our bigger corporate deck. Because of the outbreak of hostilities in the Middle East, felt that we should provide a little bit of update and discussion in this taping that we're doing for year-end 2025. The first exhibit that I show here is our storage plot for Europe. We came into the heating season in Europe last fall, beginning of winter, at a relatively low storage level. We had a pretty cold winter in the northern hemisphere, both Europe and North America.

Tony Marino: In the next section of this discussion, I'd like to turn to European gas fundamentals. Really, this is kind of an abridged section taken from our bigger corporate deck. Because of the outbreak of hostilities in the Middle East, felt that we should provide a little bit of update and discussion in this taping that we're doing for year-end 2025. The first exhibit that I show here is our storage plot for Europe. We came into the heating season in Europe last fall, beginning of winter, at a relatively low storage level. We had a pretty cold winter in the northern hemisphere, both Europe and North America.

Because of the <unk>.

Outbreak of hostilities in the.

The middle East.

Felt that we should provide a little bit of update and discussion in this.

And this taping that we're doing for year end 'twenty five.

So.

The first <unk>.

Exhibit that I show here is our storage cloth for Europe.

Yeah.

We came into the.

Heating season in Europe last fall are beginning of winter at a relatively low storage level and then we had a pretty cold winter in the northern hemisphere.

Both Europe, and North America, and as a result of that at present is were just I think beginning to exit the heating season in <unk>.

Anthony Marino: As a result of that, at present, as we're just, I think, beginning to exit the heating season and getting into the injection season, what would normally be the injection season, maybe a little bit more withdrawals to go. We're at a pretty low storage level compared to the previous nine years that are eight years before this that are shown on this graph. As we point out in the descriptions on the left side of this slide, storage is normally not quite the driver in Europe that it used to be, because there's so much LNG that has kinda become this just-in-time delivery of gas into Europe.

Tony Marino: As a result of that, at present, as we're just, I think, beginning to exit the heating season and getting into the injection season, what would normally be the injection season, maybe a little bit more withdrawals to go. We're at a pretty low storage level compared to the previous nine years that are eight years before this that are shown on this graph. As we point out in the descriptions on the left side of this slide, storage is normally not quite the driver in Europe that it used to be, because there's so much LNG that has kinda become this just-in-time delivery of gas into Europe.

Getting into the injection season, what would normally be the injection season, maybe.

Maybe a little bit.

More withdrawals to go but we're at a pretty low storage level compared to the previous.

Nine years that are <unk>.

Eight years before this that are shown on this graph.

As we pointed out in the.

Descriptions on the left side of this slide storage is not.

Probably quite the driver normally not quite the driver.

In Europe that it used to be.

Because theres so much LNG that has kind of become this just in time delivery of gas into.

Into Europe.

The pipeline supply in Europe really doesn't have much flexibility at this point too.

Anthony Marino: The pipeline supply in Europe really doesn't have much flexibility at this point to increase delivery. Really, it's all about LNG today to rebuild the storage level, which I think you can tell from the kind of winter that we had and the way it was led to a little bit higher prices. It's still important to have adequate storage levels. Now as we begin to point out here in the fourth bullet, we've got this quite significant event with the initiation of these attacks on Iran in the Middle East, and Iran's attacks on its Gulf neighbors, on Israel, and on US military facilities and military assets in the Middle East.

Tony Marino: The pipeline supply in Europe really doesn't have much flexibility at this point to increase delivery. Really, it's all about LNG today to rebuild the storage level, which I think you can tell from the kind of winter that we had and the way it was led to a little bit higher prices. It's still important to have adequate storage levels. Now as we begin to point out here in the fourth bullet, we've got this quite significant event with the initiation of these attacks on Iran in the Middle East, and Iran's attacks on its Gulf neighbors, on Israel, and on US military facilities and military assets in the Middle East.

Increased deliveries so really it's all about LNG today to rebuild the storage level, which I think you can tell from the kind of winter that we had and the way. It was led to a little bit higher prices, it's still important to have adequate storage levels.

But now as we begin to point out here in the fourth bullet.

We've got this quite significant event with the.

Initiation of these.

Attacks.

On Iran, and the middle East and runs.

Attacks on its gold Nabors and on.

Israel and on U S mill.

Military.

Facilities and.

Military assets in the Middle East.

We have at this time any way lost LNG.

LNG exports from Qatar and a much smaller volume from the UAE.

Anthony Marino: We have, at this time anyway, lost LNG exports from Qatar and a much smaller volume from the UAE. There's really no LNG transiting the Strait of Hormuz now. The big facility in Qatar is shut down. I think it's in the range of about 11 Bcf a day. We're gonna see in just a minute the impact that that has had on prices. I think we're all aware of the big increase and kind of the risk to supply that has been created as a result of this. The final point we make on this slide is that the EU has a mandate for storage to be 90 percent full.

Tony Marino: We have, at this time anyway, lost LNG exports from Qatar and a much smaller volume from the UAE. There's really no LNG transiting the Strait of Hormuz now. The big facility in Qatar is shut down. I think it's in the range of about 11 Bcf a day. We're gonna see in just a minute the impact that that has had on prices. I think we're all aware of the big increase and kind of the risk to supply that has been created as a result of this. The final point we make on this slide is that the EU has a mandate for storage to be 90 percent full.

Theres really.

No LNG transiting.

The Strait of Hormuz now and.

The big.

<unk> facility in Qatar shutdown I think it's in the range of about 11 Bcf a day. So we were going to see in just a minute the impact that that has had on prices I think we're all aware of the big increase in the kind of the risk to supply.

That has been created as a result of this the final.

Final point, we make on this slide is that the EU has a mandate for storage to be 90% full.

It's been waived for a couple of countries going several countries going into.

Anthony Marino: It's been waived for several countries going into this last heating season. That was one reason that EU did not reach the targeted storage level. Without Qatar, and if it stays off for quite a while, it will certainly be a challenge to get up to this 90% storage level that the EU was typically wanting to have, to ensure adequate gas supplies and kind of stabilize winter prices. It's kind of an unfortunate situation to enter the storage withdrawal season low, to be exiting the heating season at such a low level.

Tony Marino: It's been waived for several countries going into this last heating season. That was one reason that EU did not reach the targeted storage level. Without Qatar, and if it stays off for quite a while, it will certainly be a challenge to get up to this 90% storage level that the EU was typically wanting to have, to ensure adequate gas supplies and kind of stabilize winter prices. It's kind of an unfortunate situation to enter the storage withdrawal season low, to be exiting the heating season at such a low level.

This last heating season.

And that was one reason that.

Europe did not.

<unk> did not reach the.

Targeted storage level.

Without Qatar.

It stays off for quite a while it will certainly be a challenge to get up to this.

<unk>, 90% storage level that the EU was typically wanting to have to ensure adequate gas supplies and kind of stabilized winter prices. So.

It's kind of in a fortunate situation to <unk>.

Enter the storage.

The withdrawal season low to be exiting.

<unk>.

Heating season it.

Such a low level and to have this.

Worst start in the middle East and to lose this quite significant LNG.

Anthony Marino: To have this war start in the Middle East and to lose this quite significant LNG delivery that mainly would have gone into Asia but is gonna create competition in Europe to attract with Asia to attract LNG to rebuild the storage. If you look at the price impact on the next slide 12, here we've got several price indices shown here. These are all in US dollars per MMBtu. Typically, we put all our financial numbers in our presentations in Canadian dollars, unless we otherwise note. This one is in US dollars per MMBtu. One of the points of the slide is to compare TTF prices in the Netherlands to the prices in North America. Red curve is TTF.

Tony Marino: To have this war start in the Middle East and to lose this quite significant LNG delivery that mainly would have gone into Asia but is gonna create competition in Europe to attract with Asia to attract LNG to rebuild the storage. If you look at the price impact on the next slide 12, here we've got several price indices shown here. These are all in US dollars per MMBtu. Typically, we put all our financial numbers in our presentations in Canadian dollars, unless we otherwise note. This one is in US dollars per MMBtu.

Delivery.

Mainly would've gone into Asia.

But it is going to create competition in Europe to attract with Asia to attract LNG to rebuild the storage.

If you look at the price impact on the next slide Slide 12.

Here, we've got several.

Price indices shown here. These are all in U S dollars, Brent <unk> typically with solar.

Financial.

Numbers in our presentations in Canadian dollars unless we otherwise note. This one is in.

U S dollars per M of Btu.

And one of the points of the slide is to compare <unk> prices in the Netherlands to the prices in North America Red curve is tcf.

Tony Marino: One of the points of the slide is to compare TTF prices in the Netherlands to the prices in North America. Red curve is TTF. The forwards are shown in the dashed line. We've got quite an increase as a result of the war in the Middle East. The green curve is the price for Henry Hub, the light green curve, and then the lowest curve there, darker green curve, is the price for AECO. The one in the middle there shown in blue is the full cost or full cycle cost to deliver US Gulf Coast LNG into Europe, builds off of Henry Hub.

Forwards are shown in the Dash line.

We've got quite an increase as a result of the.

Anthony Marino: The forwards are shown in the dashed line. We've got quite an increase as a result of the war in the Middle East. The green curve is the price for Henry Hub, the light green curve, and then the lowest curve there, darker green curve, is the price for AECO. The one in the middle there shown in blue is the full cost or full cycle cost to deliver US Gulf Coast LNG into Europe, builds off of Henry Hub. If you refer to our corporate deck, we show a buildup of all the cost components, including Henry Hub, that lead to this delivered price for LNG in Europe. We update typically once a month, these materials in our corporate deck.

The war in the Middle East the.

The green curve is the.

Price for Henry hub.

The light Green curve and then the lowest curve there darker green curve is the price for echo.

The one in the middle there shown in Blue is the fulsome.

Full cost or full cycle cost to deliver.

U S Gulf Coast LNG into Europe builds off of Henry hub, if you refer to our corporate deck, we show a buildup of all the cost components.

Tony Marino: If you refer to our corporate deck, we show a buildup of all the cost components, including Henry Hub, that lead to this delivered price for LNG in Europe. We update typically once a month, these materials in our corporate deck. If you had looked at the previous couple of months, you would have seen the arb to deliver LNG into Europe, closing in 2027. Of course, now it's wide open in 2026. With this high price for TTF, it's wide open to JKM in Asia as well. That open arb continues into 2028. Although it's interesting that if you go out a couple of years in the forward curve, the arb closes.

Including Henry hub that lead to this delivered price for LNG in Europe.

We update typically once a month these.

These materials in our corporate deck and if you looked at had looked at the previous couple of months.

You would've seen the arb to deliver LNG into Europe.

Anthony Marino: If you had looked at the previous couple of months, you would have seen the arb to deliver LNG into Europe, closing in 2027. Of course, now it's wide open in 2026. With this high price for TTF, it's wide open to JKM in Asia as well. That open arb continues into 2028. Although it's interesting that if you go out a couple of years in the forward curve, the arb closes. Again, the forward curve for the very long term, not as of today, really offering much opportunity to guarantee the profitability of LNG deliveries. But certainly for the next couple of years in the forward curve that is there with the massive increase in prices. We discuss this a little bit more on slide 13.

<unk> in 2007.

Of course now it's wide open in 2006 with this high price for Tcf is wide open.

J P. A M in Asia, as well and that.

Open arm continues into 2008, although it's interesting that you go out a couple of years and the forward curve and the art closes so again the forward curve.

For the very long term not as of today really offering.

Tony Marino: Again, the forward curve for the very long term, not as of today, really offering much opportunity to guarantee the profitability of LNG deliveries. But certainly for the next couple of years in the forward curve that is there with the massive increase in prices. We discuss this a little bit more on slide 13. First of all, to describe the graph that we have here, again, in US dollars per MMBtu, we show the net back for Gulf Coast deliveries into Europe at TTF, shown in the red line, and using the forward price for TTF, the net back in the dashed red line.

Much opportunity to guarantee the profitability of LNG deliveries, but certainly for the next couple of years and the forward curve that is there with the massive increase in prices.

We discussed this a little bit more on slide 13.

First of all to describe the.

The graph that we have here.

Anthony Marino: First of all, to describe the graph that we have here, again, in US dollars per MMBtu, we show the net back for Gulf Coast deliveries into Europe at TTF, shown in the red line, and using the forward price for TTF, the net back in the dashed red line. We compare that to the net back to Asia in the black line and forward to Asia in the dashed black line. First of all, they are wide open, of course, for 2026 and 2027 into both markets. They have to compete with each other. They're quite close. It's interesting to see how efficient this market is in that competition, maybe offering a little bit higher net back to Asia right now.

Again in U S.

Dollars per M and Btu, we show the netback for Gulf Coast deliveries into.

Europe at TTM.

Shown in the Red.

Bread line and looking at using the forward price for TTS. The netback in the dashed Red line and then we compare that to the net back to Asia, and the Black line and forward to Asia and the dashed.

Tony Marino: We compare that to the net back to Asia in the black line and forward to Asia in the dashed black line. First of all, they are wide open, of course, for 2026 and 2027 into both markets. They have to compete with each other. They're quite close. It's interesting to see how efficient this market is in that competition, maybe offering a little bit higher net back to Asia right now. Again, as we point out in the bullets here, Qatar's LNG has been disrupted.

Black line. So first of all the Arb wide open of course for <unk>.

<unk> 26, and 27 into both markets they have to compete with each other quite closely.

Interesting to see how efficient this.

<unk> is in that competition.

Offering a little bit higher netback to Asia right now so again.

As we pointed out of the bullets here.

Anthony Marino: Again, as we point out in the bullets here, Qatar's LNG has been disrupted. It is gonna take time to ramp it up, whenever restart can occur, and that isn't happening yet because not only is the plant probably not safe, but it's certainly the case that vessels can't get through the Strait of Hormuz safely, unable and unwilling to go through there, and it's difficult, of course, practically impossible to insure. What this means for the global LNG market is that we've lost 20% of supply. Most of that supply was under contract sales to buyers in Asia, a lot of it oil indexed.

Qatar LNG has been disrupted.

It is going to take time to ramp it up whenever restart can occur in madison happening yet because.

Tony Marino: It is gonna take time to ramp it up, whenever restart can occur, and that isn't happening yet because not only is the plant probably not safe, but it's certainly the case that vessels can't get through the Strait of Hormuz safely, unable and unwilling to go through there, and it's difficult, of course, practically impossible to insure. What this means for the global LNG market is that we've lost 20% of supply. Most of that supply was under contract sales to buyers in Asia, a lot of it oil indexed.

Not only is the plant probably not safe, but it's certainly the case that vessels can't get through the Strait of Hormuz safely.

Unable and unwilling to go through there and it's difficult of course practically impossible to insure.

What this means for the global LNG market is that we've lost 20% of supply most of that supply was under contract sales to buyers in Asia a lot of it.

Oil indexed.

And the bottom line now is that there is going to have to be a competition and this is what this slide illustrates the forward curves.

Anthony Marino: The bottom line now is that there's gonna have to be a competition, and this is what this slide illustrates in the forward curves between Asia and Europe to get LNG vessels into each of those markets. They're also gonna have to absorb a lot higher vessel costs. These LNG carrier rates have gone up a lot, and I think we all would understand why that is the case. There's been a quite strong bearish narrative that growing LNG supplies, mostly out of the US Gulf Coast, but over the longer term, out of Qatar as well, were going to substantially reduce world gas prices. It may well still be the case, but the disruptions do call into question some of the timing.

Tony Marino: The bottom line now is that there's gonna have to be a competition, and this is what this slide illustrates in the forward curves between Asia and Europe to get LNG vessels into each of those markets. They're also gonna have to absorb a lot higher vessel costs. These LNG carrier rates have gone up a lot, and I think we all would understand why that is the case. There's been a quite strong bearish narrative that growing LNG supplies, mostly out of the US Gulf Coast, but over the longer term, out of Qatar as well, were going to substantially reduce world gas prices.

Between Asia, and Europe to get LNG.

Vessels into those each of those markets, they're also going to have to absorb a lot higher vessel costs.

These LNG carrier rates have gone up a lot and I think we all would understand why that is the case.

So theres been a alright.

Alright strong.

Bearish narrative that.

Growing LNG supplies, mostly out of the U S Gulf coast, but over the longer term out of Qatar as well.

Going to <unk>.

Substantially reduce.

Both gas prices.

<unk>.

It will still be the case, but.

Tony Marino: It may well still be the case, but the disruptions do call into question some of the timing. We don't have it in this deck, but you can refer to the corporate deck. Looking at, for example, the previous estimated timings of expansions from Qatar. Some of that is already expected to be delayed, and Qatar has made that kind of announcement already for something on the order of a 5 BCFD expansion. Some delay, we don't know how long it will last.

The disruptions do call into question some of the timing.

We don't have it in this deck that you can refer to the corporate deck.

Looking at for example, the.

Anthony Marino: We don't have it in this deck, but you can refer to the corporate deck. Looking at, for example, the previous estimated timings of expansions from Qatar. Some of that is already expected to be delayed, and Qatar has made that kind of announcement already for something on the order of a 5 BCFD expansion. Some delay, we don't know how long it will last. As far as the current supply situation, of course it's had an impact on prices already, and it is going to make it difficult to get to the mandated storage levels that the EU wants.

As to the previous estimate of timings of.

Expansions from Qatar some of that is already.

Expect it to be delayed in Qatar has made that kind of announcement already for something on the order of <unk> five Bcf expansion. Some delay we don't know how long it will last as far as the.

Current supply situation.

Of course, it's had an impact on prices already.

Tony Marino: As far as the current supply situation, of course it's had an impact on prices already, and it is going to make it difficult to get to the mandated storage levels that the EU wants. As we point out here, you can pick probably any term, but we say that if we have a two-month disruption, there would be a meaningful impact on Europe's summer storage injection. Keeping in mind that around 11 BCFD, 11 or 12 BCFD maybe between Qatar and UAE are currently off. Any disruption, of course, will have probably an impact on refilling that storage.

And it is going to make it difficult to get to the mandated storage levels.

That the EU.

Once and as we pointed out here you can pick probably any term, but we say that if we have a two month disruption there would be a meaningful impact on.

Anthony Marino: As we point out here, you can pick probably any term, but we say that if we have a two-month disruption, there would be a meaningful impact on Europe's summer storage injection. Keeping in mind that around 11 BCFD, 11 or 12 BCFD maybe between Qatar and UAE are currently off. Any disruption, of course, will have probably an impact on refilling that storage. The longer it goes, the less probable I think that we're gonna get to the kind of storage levels that Europe would be seeking. Hence the big increase in prices and this dynamic of buyers having to compete for LNG.

Europe's summer storage injection, keeping in mind that around 11 Bcf, the 11 or 12 years Cfd, maybe between Qatar and UAE are currently off.

Any disruption of course.

I'll have.

Probably an impact on refilling that storage, but the longer it goes the less probable I think that we're going to get to the kind of storage levels.

Tony Marino: The longer it goes, the less probable I think that we're gonna get to the kind of storage levels that Europe would be seeking. Hence the big increase in prices and this dynamic of buyers having to compete for LNG.

That Europe would be seeking.

Hence the big increase in prices and this dynamic of buyers.

Buyers having to compete for LNG.

If you want to learn how to master using al don't watch Youtube videos.

[Narrator 3]: If you want to learn how to master using AI, don't watch YouTube videos. Why? There's too much information online, and you'll feel like.

[Video Narrator]: If you want to learn how to master using AI, don't watch YouTube videos. Why? There's too much information online, and you'll feel like.

There's too much information on line and you will feel it.

So.

Final point, we're going to make in this section is just to take a look at our hedging position that we have.

Anthony Marino: Final point we're gonna make in this section is just to take a look at our hedging position that we have. As far as the strategy, we've enunciated this before. We do hedge a significant amount of our production. We did it at the time of our major transactions. We wanna ensure a certain level of cash flow. We want to lock in returns to the extent possible on our organic investment program. Typically, if we look at a 1 to 2-year period, we'd seek a base level of hedging of about 30 to 50% of our expected production. We would potentially optimize or add hedges opportunistically if the market opportunity is there, up to around 70% of the production that we expect.

Tony Marino: Final point we're gonna make in this section is just to take a look at our hedging position that we have. As far as the strategy, we've enunciated this before. We do hedge a significant amount of our production. We did it at the time of our major transactions. We wanna ensure a certain level of cash flow. We want to lock in returns to the extent possible on our organic investment program. Typically, if we look at a 1 to 2-year period, we'd seek a base level of hedging of about 30 to 50% of our expected production.

As far as the strategy we have.

Nancy I did this before.

We do hedge a significant amount of our production we did it at the time of our major transactions.

We want to ensure a certain level of cash flow, we want to lock in returns to the extent possible on our organic investment program.

Typically.

If we look at.

One to two year period, we'd be with <unk>.

Seek a base level of hedging of about 30% to 50% of our expected production and then we would potentially optimize or add hedges opportunistically as the market.

Tony Marino: We would potentially optimize or add hedges opportunistically if the market opportunity is there, up to around 70% of the production that we expect. You can see that we do have a hedge book in place today that is within this strategy. We have added a number of hedges to our position since the war started. We'll probably continue to hedge as we see opportunities. Of course, we try to stay abreast of the market dynamics and the military situation. We will, you know, in a series of increments, I think be adding to the hedge position that we have today.

The opportunity is there up to around 70% of our of the production that we expect and you can see that we do have a hedge book in place today.

That is.

Anthony Marino: You can see that we do have a hedge book in place today that is within this strategy. We have added a number of hedges to our position since the war started. We'll probably continue to hedge as we see opportunities. Of course, we try to stay abreast of the market dynamics and the military situation. We will, you know, in a series of increments, I think be adding to the hedge position that we have today. If you take a look at the subcomponents in the hedge position, on a volume basis, we're about 54% hedged in 2026 for TTF. TTF is 89% of our product mix, and it's the highest value product we have in our portfolio.

Within this strategy.

We have added a number of hedges too.

Two our position since the war started will probably continue to hedge as we see opportunities of course, we try to stay abreast of the market dynamics in the military situation.

And we will.

<unk>.

In a series of increments I think be adding to the hedge position that we have today.

If you take a look at the sub components in our hedge position.

On a volume basis were about 54% hedged in 2006 for TTS Tcf is.

Tony Marino: If you take a look at the subcomponents in the hedge position, on a volume basis, we're about 54% hedged in 2026 for TTF. TTF is 89% of our product mix, and it's the highest value product we have in our portfolio. It's gonna drive the you know revenue composition and it's gonna be the most important factor in our hedging program. Volumetrically, a little bit over half hedged. We quote here both in euros per megawatt hour and in Canadian dollars per Mcf or Mmbtu.

89% of our product mix and it's the highest value product we have in our portfolio. So.

It's going to drive the.

Revenue composition, and it's going to be the most important factor in our hedging program, so volumetric leak, a little bit over half hedged.

Anthony Marino: It's gonna drive the you know revenue composition and it's gonna be the most important factor in our hedging program. Volumetrically, a little bit over half hedged. We quote here both in euros per megawatt hour and in Canadian dollars per Mcf or Mmbtu. And some of these are swaps, some of these are collars, various structures using both forwards and options with the range that we have quoted there today. In 2027, we've hedged about 32% at similar levels to what we have in place for 2026. Again, the hedges that we placed today are going to improve these price levels. These levels do lock in very significant margins for us.

We quote here both in euros per megawatt hour.

And in Canadian dollars per Mcf or <unk> to you.

Yeah.

And some of these were swaps. Some of these are callers various structures using both forwards and options.

Tony Marino: And some of these are swaps, some of these are collars, various structures using both forwards and options with the range that we have quoted there today. In 2027, we've hedged about 32% at similar levels to what we have in place for 2026. Again, the hedges that we placed today are going to improve these price levels. These levels do lock in very significant margins for us. They're a multiple of our cash OpEx and transacts that we have in our Netherlands business. We have also hedged a lot of AECO.

With the range that we have quoted there today.

In 27, we've hedged about 32% at similar levels to what we had in.

Have in place for 26 again, the hedges that we place today.

<unk> going to improve these price levels.

These levels do lock in very significant.

Margins for us there.

Multiple of R.

Our cash opex in transact that we have.

Anthony Marino: They're a multiple of our cash OpEx and transacts that we have in our Netherlands business. We have also hedged a lot of AECO. These are almost entirely in the money, more than half the volume for 2026 and nearly half already for 2027. AECO hasn't really had that much response to the increase in worldwide prices. We have also hedged a fair amount of our WTI price exposure, and these prices shown here are in Canadian dollars per barrel. They're, you know, reasonable levels, I think, for us to hedge, and they too lock in quite a bit of cash flow for the oil portion of our Canadian unit.

Our Netherlands business.

We have also hedged a lot of.

Heiko these are.

Almost entirely in the money.

More than half the volume for 26% nearly half already for 27% <unk> hasn't really had that much response too.

Tony Marino: These are almost entirely in the money, more than half the volume for 2026 and nearly half already for 2027. AECO hasn't really had that much response to the increase in worldwide prices. We have also hedged a fair amount of our WTI price exposure, and these prices shown here are in Canadian dollars per barrel. They're, you know, reasonable levels, I think, for us to hedge, and they too lock in quite a bit of cash flow for the oil portion of our Canadian unit. If you put it all together, the corporate hedge position on a revenue basis today is about 45% for 2026.

The increase in worldwide prices.

We have also hedged.

A fair amount of RW Ti price exposure.

And these prices shown here are in Canadian dollars per.

Beryl.

So there.

Reasonable levels, I think for us to hedge and to lock in quite a bit of <unk>.

Cash flow.

For the oil portion of our Canadian unit, if you put it all together.

The corporate hedge position on a revenue basis today is about 45% for 26.

Anthony Marino: If you put it all together, the corporate hedge position on a revenue basis today is about 45% for 2026. That takes the strip, in this case, it's as of 10 March, as shown in the footnotes, applies that to the unhedged volumes and takes into account all the hedges that we already have in place. Same number on a revenue basis, doing the same methodology using the 2027 strip at 10 March, shows that we would have locked in 28% of our revenue if that forward curve actually materializes. The summary here is that we've got an important hedge program.

That takes the strip in this case, it's as of March 10, as shown in the footnotes applies that to the unhedged volumes and takes into account all the hedges that we already have in place.

Tony Marino: That takes the strip, in this case, it's as of 10 March, as shown in the footnotes, applies that to the unhedged volumes and takes into account all the hedges that we already have in place. Same number on a revenue basis, doing the same methodology using the 2027 strip at 10 March, shows that we would have locked in 28% of our revenue if that forward curve actually materializes. The summary here is that we've got an important hedge program.

Same number on a revenue basis doing the same methodology using the 27 strip at March 10.

It shows that we would have locked in 28% of our revenue.

That forward curve actually materializes. So the summary here is that we've got a.

An important hedge program, it's within our hedge strategy.

And we are.

Attempting to take advantage of the increase in prices that we've seen to add higher priced hedge positions to those that we had in place before the war started.

Anthony Marino: It's within our hedge strategy, and we are attempting to take advantage of the increase in prices that we've seen to add higher priced hedge positions to those that we had in place before the war started. The final topic I wanna cover is just our 2026 guidance. I can cover it very, very briefly.

Tony Marino: It's within our hedge strategy, and we are attempting to take advantage of the increase in prices that we've seen to add higher priced hedge positions to those that we had in place before the war started. The final topic I wanna cover is just our 2026 guidance. I can cover it very, very briefly.

The final topic I want to cover is just our 2026 guidance I can cover it very very briefly.

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[Video Narrator]: The more you stay home, the less you want to leave. The more you stay, the heavier everything feels. You think you're resting, but you're actually draining yourself. Your brain slows down. Your thoughts get louder. You stop wanting to do anything. This is how self-sabotage shows up in high IQ men. Your mind keeps spinning, stuck in the past, worried about the future, exhausted by the present. Time slips away. Motivation fades. Even simple tasks feel too hard. Every day, you disappoint yourself a little more. Not because you're lazy, but because you don't have the right system.

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We have not made any modification to our production or capex guidance.

Anthony Marino: We have not made any modification to our production or CapEx guidance. Production guidance midpoint remains 21,000 BOED and at a CapEx range of CAD 250 to 275 million. Subject to change based on project availability and as well as our cash flow generation. We run a program that will be 3 to 4, I would say, operated gross wells in Netherlands. If it's 3, it probably will be in the range of 1.6 net. We're gonna continue to run the barge campaign with its high rates of return. I'd point out that we're very, very encouraged by the results that we got on our first well, again, a well that was not a PUD.

Tony Marino: We have not made any modification to our production or CapEx guidance. Production guidance midpoint remains 21,000 BOED and at a CapEx range of CAD 250 to 275 million. Subject to change based on project availability and as well as our cash flow generation. We run a program that will be 3 to 4, I would say, operated gross wells in Netherlands. If it's 3, it probably will be in the range of 1.6 net. We're gonna continue to run the barge campaign with its high rates of return. I'd point out that we're very, very encouraged by the results that we got on our first well, again, a well that was not a PUD.

<unk> production guidance midpoint remains 21000 Boe.

And our Capex range of 250 to 275 million Canadian.

Subject to change based on <unk>.

Project availability and.

As well as our cash flow generation.

We run a program that will be three to four I would say operated gross wells in Netherlands, if its three it probably will be in the range of $1. Six net we're going to continue to run the barge campaign with its high rates of return I would point out that we're very very encouraged by the results that we got on our first well again.

Well that was not a pud it was coming off the.

Perspective.

Report and we are happy that we made the rot league in discovery that we did and generate if we think pretty good rates on test in.

Anthony Marino: It was coming off the prospective report, and we are happy that we made the Rotliegend discovery that we did and generated, we think, pretty good rates on test. In the non-operated program, we believe there will be 4 gross wells at GEMS drilled by operator ONE-Dyas, 1.4 net probably. The Eni-operated Malachite well is now being completed. Again, well, I think I discussed it earlier, 21% working interest. We've got the smaller Canadian program on the order of CAD 10 million of capital investment, 3 gross, 2.6 net wells, and I discussed that earlier. Product mix, again, we'll just remind you, is nearly 90% TTF, most of the remainder being Canadian oil, WCS grade.

Tony Marino: It was coming off the prospective report, and we are happy that we made the Rotliegend discovery that we did and generated, we think, pretty good rates on test. In the non-operated program, we believe there will be 4 gross wells at GEMS drilled by operator ONE-Dyas, 1.4 net probably. The Eni-operated Malachite well is now being completed. Again, well, I think I discussed it earlier, 21% working interest. We've got the smaller Canadian program on the order of CAD 10 million of capital investment, 3 gross, 2.6 net wells, and I discussed that earlier.

In the non operated program.

Believe there will be four gross wells at night at gems drill by operator, one Ddos one four net probably.

And.

The Eni operated <unk> well is now being completed again, well I think what I discussed earlier of 21% working interest we've got the smaller Canadian program on the order of $10 million of capital investment three grows to six net wells and I discussed that earlier.

Product mix again, we'll just remind you is.

Nearly 90% TTM most of the remainder being Canadian oil WCS grade.

Tony Marino: Product mix, again, we'll just remind you, is nearly 90% TTF, most of the remainder being Canadian oil, WCS grade.The final point on the slide on the upper right, when we run this level of capital program, we do think that it positions us for multiple years of organic growth, particularly in the Netherlands, and a moderate pace of growth continuing in our Canadian oil project. That concludes my presentation today. We thank you for your interest in Tenaz, and we look forward to talking to you at our next opportunity. Thank you.

And the final point on the slide on the upper right. When we run this level of capital program, we do think that it positions us for multiple years of organic growth.

Anthony Marino: The final point on the slide on the upper right, when we run this level of capital program, we do think that it positions us for multiple years of organic growth, particularly in the Netherlands, and a moderate pace of growth continuing in our Canadian oil project. That concludes my presentation today. We thank you for your interest in Tenaz, and we look forward to talking to you at our next opportunity. Thank you.

In.

Particularly in the Netherlands, and a moderate pace of growth continuing in our Canadian oil project.

So that concludes my presentation today, we thank you for your interest in <unk> and we look forward to talking to you at our next opportunity. Thank you.