Tenaz Energy Corp. ("Tenaz", "Our") is pleased to announce its 2025 guidance, prior to the closing of the acquisition of NAM Offshore BV ("NOBV"). Tenaz will update its 2025 guidance reflecting additional investment and production from NOBV after closing, which is projected to occur at mid-year 2025 or earlier.
Our Board of Directors has approved a drilling and development capital ("D&D CAPEX") budget of $30 to $34 million. We also intend to invest approximately $1.7 million in exploration and evaluation capital ("E&E CAPEX") to evaluate the potential CCS project at L10 in the Dutch North Sea. Production guidance for 2025 is 2,900 to 3,100 boe/d(1), reflecting growth of approximately 10% from 2024.
Capital and Production Guidance
Our planned D&D CAPEX program envisions a three (2.3 net) well drilling program in the Glauconitic and Ellerslie formations at Leduc-Woodbend, using unstimulated horizontal wells. We have a large number of additional development drilling opportunities in the Rex, Ellerslie, Glauconitic and Sparky formations, and have the flexibility to scale up activity during the year. Our planned Canadian program prioritizes what we believe to be our most capital efficient inventory while maintaining approximately 15% production growth at Leduc-Woodbend. D&D CAPEX in Canada is budgeted to be $9 to $11 million.
In our non-operated Dutch North Sea assets, we expect to invest in our share of minor production-adding activities on existing wells, facility maintenance, and a development well in the L10-hub area. The L10 Malachite extended-reach development well (Tenaz working interest of 21.43%) is expected to be drilled in the second half of 2025, with some timing uncertainty that may push this well into 2026. The L10 Malachite well targets a pool that was previously tested but not developed. Programmed total measured depth is 4,800 meters to reach a Rotliegend sand at a true vertical depth of 3,500 meters. The well is anticipated to be drilled from an existing platform and brought online within existing infrastructure to the L10-hub for processing and delivery to the NGT system. Expected gross production rate is expected to be approximately 25 MMcf/d, with first production in late 2025 or early 2026. Budgeted D&D CAPEX for our Netherlands non-operated assets is $21 to $23 million, including approximately $14 million for Malachite L10.
Annual consolidated production guidance for 2025 is 2,900 to 3,100 boe/d(1), approximately 10% higher than 2024. Our 2025 guidance reflects continuing growth at Leduc-Woodbend and a flat year-over-year production profile for our non-operated Dutch North Sea assets, after including a one-month contribution from Malachite at the end of 2025.
Transition activities to effect closing of the NOBV acquisition are underway with an anticipated completion date in line with our previously-reported expectations. In addition, we continue to evaluate and advance additional opportunities in our transaction pipeline.
Organizational Update
The scope of our activities continues to grow as we approach closing of the NOBV acquisition and pursue additional organic and M&A investment opportunities. Accordingly, we are announcing two key additions to the Tenaz team to add shareholder value in a number of aspects of our business plan.
We are pleased to announce the appointment of Adam Iwanicki as Vice President of Marketing. Mr. Iwanicki has more than twenty years of marketing, risk management and market research experience in global commodities and currencies, including design and execution of successful hedging programs for TTF gas. He most recently was Director of Marketing for Vermilion Energy, with earlier positions at Baytex Energy, ARC Resources, and BP p.l.c. Mr. Iwanicki has a Bachelor of Arts degree in Economics and International Relations from the University of Calgary and a Master's degree in International Relations from Jagiellonian University in Krakow, Poland.
We are also pleased to announce the appointment of Jamie Gagner as Vice President and General Counsel. Mr. Gagner has served as Corporate Secretary since the formation of Tenaz as a public company in 2021. He has over twenty-five years of experience in public markets securities, corporate governance and M&A through a wide range of engagements on international, Canadian and U.S. projects. Mr. Gagner was most recently a partner at Lawson Lundell LLP and previously at Norton Rose Fulbright LLP. He has a Bachelor of Laws degree from the University of Saskatchewan and Bachelor of Arts degree from the University of British Columbia (Political Science and History) and is a member of the Law Society of Alberta.
We are excited about the continued enhancement of the Tenaz team. It is ultimately the people in our company that will determine our long-term success. We are confident that these new officers will facilitate the execution of our business development activities, as well as improve the performance of our existing assets and the NOBV acquisition.
