Tamarack Valley Energy Ltd. announced production results for the year 2013. The company announced that it has surpassed its 2013 average production and 2013 exit production guidance as a result of continued success in the Cardium and Viking. Based on field production estimates for December 2013, the company averaged 4,718 boe/d (approximately 62% liquids), exceeding its exit production guidance rate of 4,200 boe/d to 4,300 boe/d. Based on these field estimates, the company's average production for 2013 was 3,276 boe/d, exceeding the original 2013 production guidance of 2,900 boe/d to 3,000 boe/d.

The company provided production guidance for the year 2014. By executing this drilling program, The company anticipates cash flow of $51 million to $52 million. Estimated 2014 year end debt to annualized fourth quarter of 2014 cash flow from operation of 1.6 times. In December 2013, Tamarack's Board of Directors approved a capital budget of up to $68 million for 2014, focused on drilling Cardium horizontal development and Viking oil development wells. The 2014 capital budget will allow the company to drill approximately 5.0 net Cardium 1-mile horizontals, 4.3 net Cardium long reach (1.5 to 2-miles) horizontals and 18.3 net Viking oil wells. The Board of Directors approved an increase to the 2014 capital budget to $90 million - $92 million for 2014, focused on drilling Cardium horizontal development and Viking oil development wells. The company's new 2014 production forecast is 5,300 boe/d - 5,500 boe/d with a 2014 exit rate of 6,500 boe/d to 6,700 boe/d (60% oil and natural gas liquids). This program will earn over 13 net sections of Cardium lands in the greater Pembina area and achieve approximately 65% of its total farm-in drilling commitment by the end of 2014.

The company provided Cardium Drilling Update. To date, Tamarack has drilled 6 (3.2 net) wells on the farm-in lands which includes a combination of 1-mile and 1.5-mile wells. Based on capital program, Tamarack expects to have drilled the equivalent of 7.4 net earning wells towards the farm-in commitment by March 31, 2014, well ahead of the farm-in drilling obligation. Of the 6 (3.2 net) wells drilled to date, 3 (1.6 net) are producing through permanent facilities, with another 2 (0.98 net) wells expected to commence production over the next week. The production contribution from the farm-in lands to the 2013 fourth quarter average was 286 bbls/d of oil. Based on field estimates, current production from the first three wells averaged 876 boe/d over the past 3 days. The early results of recent drilling on the farm-in lands has met or exceeded internal expectations. Tamarack is planning to drill up to 6 (2.1 net) Cardium wells on the farm-in lands and in the Garrington area during the first quarter of 2014. Through two additional farm-in agreements in the greater Pembina area, Tamarack has increased its Cardium land position by 7 (3.6 net) sections, bringing the total Cardium land position to over 116 net sections. These agreements increase Tamarack's drilling inventory of Cardium locations by 14 net low risk development locations. Tamarack will continue to expand its Cardium position in core areas by consolidating working interest on lands or through acquiring interests adjacent to lands. Management estimates a total inventory of 174 net Cardium locations.