Tenth Avenue Petroleum Announces Closing of Light Oil Acquisition

NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION IN THE UNITED STATES

CALGARY, AB / ACCESSWIRE / September 30, 2022 / Tenth Avenue Petroleum Corp. ("TPC" or the "Company") (TSXV:TPC) is pleased to announce that the Company has closed the acquisition of a light oil, high netback asset in Southern Alberta from Danzig Resources Ltd. (the "Acquisition" or "Acquired Assets").

SUMMARY ACQUISITION HIGHLIGHTS

• Production of 38 boe/d⁽¹⁾ (69% oil and natural gas liquids), including 26 bbls/d of light oil;
• Operating netback of $66.90/boe⁽²⁾ ;
• Estimated run-rate of approximately$698,000⁽³⁾ net operating income;
• Attractive purchase price of approximately1.1x run rate cash flow⁽³⁾ or approximately $20,000/flowing boe;
• Acquisition is accretive on a per share basis: 3.76% of additional shares issued, increasing production by 21%;
• Danzig Resources Ltd. will retain a three percent (3%) gross overriding royalty on production from a natural gas well located at 102/6-11-015-26W4/00, which is awaiting tie-in;
• Post Acquisition, the Company will have 39,844,100 issued and outstanding shares, on an undiluted basis.

Notes

1. Disclosure of production on a per boe basis in this press release consists of the constituent product types and their respective quantities disclosed elsewhere in this press release. Refer to Barrel of Oil Equivalency and Production and Product Type Information in this press release for additional disclosure.
2. Also referred to as "operating netback" for the period June 2022. Operating netback is a non-GAAP financial measure. Refer to Oil & Gas Advisories in this press release for additional disclosure and assumptions.
3. Disclosure of Net Operating Income is based on June 2022 actual production, prices, royalties and operating costs.Refer to Oil & Gas Advisories in this press release for additional disclosure and assumptions.

Consideration for the Acquisition was $760,000 subject to normal closing adjustments, payable with $400,000 cash and the issuance of 1,500,000 common shares of the Company ("Consideration Shares") at an ascribed price of $0.24 per share, which was the share price at closing.