/NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRES/ CALGARY, AB, April 16, 2024 /CNW/ - Highwood Asset Management Ltd. ("Highwood" or the "Company") (TSXV:HAM) is pleased to announce financial and operating results for the three and twelve months ended December 31, 2023 and to provide the results of its independent oil and gas reserves evaluation as of December 31, 2023, prepared by GLJ Petroleum Consultants Ltd. ("GLJ"). The Company also announces that its audited financial statements and associated Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2023, are available on Highwood's website at www.highwoodmgmt.com and on SEDAR+ at www.sedarplus.ca. Highlights Achieved record corporate production of 4,035 boe/d in the fourth quarter of 2023. As a result of an effective capital program in the fourth quarter of 2023 and early 2024, first quarter 2024 production is expected to average approximately 4,900 boe/d and current production is greater than 6,500 boe/d. During the first quarter of 2024, the Company executed a successful capital program of approximately $24 million, which included five additional wells, all of which were brought onstream in the first quarter. These five wells consisted of three fracture stimulated wells at Wilson Creek and two additional multi-lateral open hole wells, one in Brazeau and one in the Mannville horizon in eastern Alberta. The Company is encouraged by the initial results on the capital program executed to date in 2024, particularly with respect to the Wilson Creek wells, 100/12-05-043-05 (the "12-05 well"), 100/13-05-043-05 (the "13-05 well"), and the Brazeau well 02/08-33-047-14W5 (the "08-33 well"). Trailing and current production for the five wells drilled in the first quarter of 2024 are summarized below: Average Rate Since Online Current Rate Well Spud Rig Release BOPD BNGLD MCFD BOED BOPD BNGLD MCFD BOED Days Online Brazeau 08-33 well 2024-02-18 2024-03-03 310 6 127 337 393 8 180 431 30 Wilson 13-05 well 2024-01-24 2024-02-02 262 15 172 306 611 41 470 731 13 Wilson 12-05 well 2024-02-03 2024-02-15 241 14 159 282 518 41 467 637 12 Wilson 16-33 well 2024-01-06 2024-01-13 187 37 314 276 242 55 472 376 54 Viking 14-29 well 2024-02-06 2024-02-20 28 0 0 28 37 0 0 36 24 (1)      The test results are not necessarily indicative of long-term performance or of ultimate recovery. The five wells had associated average cycles times of 45 days and delivered capital efficiencies of less than $20,000 boe/d, an improvement of more than 20% versus the previous forecast. Significant intrinsic value recognized in Year-End 2023 Reserves. Realized before-tax net present value, after debt, of booked reserves(1): PDP BTNPV10 of $218.9 million representing NAV $8.06/share and $7.93/share fully diluted. Associated RLI of 10.8 years and delivered a recycle ratio of 2.34 1P BTNPV10 of $463.6 million representing NAV $24.25/share and $21.07/share fully diluted. Associated RLI of 15.2 years and recycle ratio of 2.9 2P BTNPV10 of $746.9 million representing NAV $43.00/share and $36.28/share fully diluted. Associated RLI of 21.8 years and recycle ratio of 3.6 At December 31, 2023, Highwood had over $300 million in tax pools, including more than $100 million in non-capital losses. Highwood does not anticipate being cash taxable for approximately three years. Highwood reiterates its 2024 production guidance of approximately 5,200 boe/d. Representing year-over-year growth of ‎approximately 25%. Forecast capital expenditures are estimated to be approximately $40–45 million. Further, the Company expects to reduce Net Debt by approximately 25%, reducing Net Debt / ‎‎2024E EBITDA to under 0.8x by the end of 2024.(1)(2). The Company will continue to evaluate our capital program, market conditions and associated guidance over the next 30 days. Notes to Highlights: (1) See ‎"Caution Respecting Reserves Information"‎ and ‎‎"Non-GAAP and other Specified Financial Measures"‎. (2) Based on Management's projections (not Independent Qualified Reserves Evaluators' forecasts) and applying the following pricing ‎assumptions: WTI: ‎‎US$78.00/bbl; ‎‎WCS Diff: ‎US$14.00/bbl; MSW Diff: ‎‎US$4.00/bbl; AECO: C$1.90/GJ; 0.74 CAD/USD‎. Management ‎projections are used in place of Independent Qualified Reserves Evaluators' ‎‎‎forecasts as Management believes it provides investors with valuable ‎‎information concerning the liquidity of the Company.‎ Summary of Financial & Operating Results  Three months ended December 31,  Year ended December 31, 2023 2022 % 2023 2022 %  Financial (in thousands)  Petroleum and natural gas sales $ 23,633 $ $ 1,027 2,201 $      41,212 $      4,438 829  Transportation pipeline revenues 757 769 (2) 2,867 3,255 (12)  Total revenues, net of royalties(1) 28,918 1,827 1,483 41,038 6,618 520  Income 47,785 62 76,973 46,144 2,246 1,954  Funds flow from operations(5) 7,813 433 1,704 13,873 1,519 813  Adjusted EBITDA(6) 10,261 322 3,087 17,667 1,608 999  Capital expenditures 14,737 362 3,971 18,767 2,045 818  Net debt (2) 97,051 (236) -  Shareholder's equity (end of period) 104,199 10,697 874  Shares outstanding (end of period) 15,114 6,037 150  Weighted-average basic shares 9,723 6,088 60   outstanding  Operations (3)  Production    Crude oil (bbls/d) 2,306 119 1,830 978 113 765    NGLs (boe/d) 526 - 100 210 - 100    Natural gas (mcf/d) 7,215 - 100