Canadian Oil & Gas Co. Closes Acquisition of Dutch E&P
Research Report

1. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
2.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Disclosures for Research Capital Corp., Tenaz Energy Corp., May 1, 2025

Analyst Certification I, Bill Newman, CFA, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. Relevant Disclosures Applicable to Companies Under Coverage Information about Research Capital Corporation's Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating catergories is available on our website at www.researchcapital.ca General Disclosures Research Capital Corporation publishes research and investment recommendations for the use of its clients. The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions. Distribution Policy Through www.researchcapital.com, our institutional and corporate clients can access our research as soon as it becomes available, 24-7. New reports are continually uploaded to the site as they become available throughout the day. Clients may also receive our research via Reuters, Bloomberg, FactSet, and Capital IQ. All of our research is made widely available at the same time to all Research Capital client groups entitled to our research. In addition, research reports are sent directly to our clients based on their delivery preference (mail, fax, e-mail). Fair Dissemination of Research Reports and Ratings To the extent reasonably practicable, Research Reports will be disseminated contemporaneously to all of Research Capital Corporation ("RCC") customers who are entitled to receive the firm's research. Until such time, Research Analysts will not discuss the contents of their reports with Sales and Trading or Investment Banking employees. RCC equity research is posted to our proprietary website to ensure eligible clients receive coverage initiations and changes in rating, targets and opinions in a timely manner. Additional distribution may be done by the sales personnel via email, fax or regular mail. Please contact your Investment Advisor or Portfolio Manager for more information regarding RCC research. Percentage Distribution of Research Ratings As required by the Canadian Investment Regulatory Organization, Research Capital provides a summary of the percentage of its recommendations that fall into each category of our ratings. Our distribution of ratings is available on our website at www.researchcapital.com Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Potential Conflicts of Interest All Research Capital Corporation ("RCC") Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. RC USA INC. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report. This report has been created by analysts who are employed by Research Capital Corporation, a Canadian Investment Dealer. US firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital USA Inc., a Broker – Dealer registered with the Financial Industry Regulatory Authority (FINRA). Member – Canadian Investor Protection Fund / membre – fonds canadien de protection des épargnants

Tenaz Energy Corp. (TNZ:TSX) closed its acquisition of NAM Offshore BV (NOBV) on May 1 and renamed it Tenaz Energy Netherlands BV, reported Bill Newman, Research Capital Corp. analyst, in a research note on the same day.

"The closing of the NOBV acquisition is a transformational milestone for Tenaz, providing a robust platform of low-risk development and high-impact exploration potential in the Dutch North Sea," Newman wrote. "Importantly, Tenaz is not resting on its success — management continues to pursue a pipeline of disciplined, value-accretive mergers and acquisitions (M&A) opportunities."

32% Uplift, Buy Rating

On the news, Research Capital reiterated its CA$21.70 per share target price on the Canadian oil and gas explorer-producer, trading at the time of the report at about CA$16.46 per share, noted Newman. The target implies a potential return for investors of 32%.

Tenaz remains a Buy.

"With a strong balance sheet, growing international scale and proven execution, we believe Tenaz is well-positioned to deliver continued growth and shareholder returns into 2025 and beyond," Newman commented.

The energy company has 27.4 million outstanding shares. Its market cap is CA$454.50 million (CA$454.50M). Its 52-week range is CA$3.01–7.56 per share.

Additions to Asset Portfolio

With the acquisition, Tenaz gained 600,000 net acres and six production hubs, having an average operated interest of 87% and as determined by Tenaz so far, offering 30 development drilling locations and 80 exploration leads. The assets have low decline rates of about 10%, a long reserve life of about 22 years and strong operating margins. Proven and Probable reserves are an estimated 55,700,000 barrels of oil equivalent (55.7 MMboe), 99% natural gas. Their after-tax net present value discounted at 10% is CA$0.97 billion.

Production from these assets during the first four months of 2025 averaged about 11,000 barrels of oil equivalent per day (11 Mboe/d), 99% natural gas, during the first four months of 2025, in line with expectations, Newman noted.

Tenaz also gained strategic infrastructure in the Dutch North Sea, including pipeline interests and three gas processing trains at the Den Helder gas plant.

Tenaz gained about US$16M in cash, at closing, indicating strong cash flow since January 2025, the acquisition effective date.  

Production, Capex Forecasts

Newman provided Tenaz's updated guidance. Production from the acquired assets is expected to average 10 Mboe/d for 2025. Between May 1 and year-end, they are forecasted to contribute 6.1–6.4 Mboe/d to company volumes. Thus total volumes for Tenaz are projected to average 9–9.5 M boe/d.

Capex for 2025 is estimated to be between CA$86.7M and CA$96.7M, and this takes into account the expected CA$55–61M spend on the new assets throughout the rest of 2025. Costs primarily will be from low-risk development, including well workovers, facility upgrades and development drilling. Internal cash flows from the company's Canadian and Dutch operations will fund this work.

Research Capital adjusted its 2025 model of Tenaz based on this post-acquisition guidance, Newman wrote. Specifically, the investment firm reduced its 2025 production forecast to 9.625 Mboe/d from 9.75 Mboe/d to reflect lower expectations from the Canadian assets. It also increased its funds flow estimate to CA$118M from CA$107M "driven by stronger margins from the [new] assets," wrote Newman.

On The Horizon

Tenaz is due to release its Q1/25 financial and operational results on May 9, reported Newman. Events that could boost the company's stock price include additional M&A activity.