Category: Canada

MIL-OSI New Zealand: Auckland Council’s intern adventures in Healthy Waters end

Source: Auckland Council

In December last year, 50 ambitious, wide-eyed twenty-somethings strode into Auckland Council, each wearing an outfit meticulously chosen to scream “hire me!” (or at least whisper it convincingly). Day one was a heady mix of excitement, nerves, and an almost audible chorus of imposter syndrome echoing off the walls. As we exchanged awkward smiles and first-day introductions, one question loomed large: why us?

For three of our interns, the answer lies in their unique stories and unstoppable passion.

Georgia Dennis: a life of green perspectives

Georgia Dennis is the person you’d want to sit next to on a plane — and not just because she’s clocked enough frequent flyer miles to rival a seasoned pilot. From backpacking across South America to attending high school in Italy, Georgia’s experiences have shaped her passion for sustainability.

A small Guatemalan town devoid of plastic opened her eyes to a world without mass production. A month-long conversation with a Venezuelan man in Ecuador taught her how privilege shapes opportunity. Canada showed her how New Zealand leads the way in environmental action. Her most important lesson? Perspective.

Now, pursuing a master’s in environmental management and armed with degrees in physics and philosophy, Georgia is bringing that perspective and purpose to her role.

“Working at Council feels like a way to repay the environment for all we’ve taken from it,” she says. Georgia believes the world isn’t black and white, but if we all embraced a little more “green”, it might just thrive.

Deshma Weerapperuma: passionate about rocks and ripple effects

“I love rocks,” Deshma declared at three, setting the stage for a lifelong passion that’s now guiding her through a degree in Earth Sciences.

Born in Botswana and raised in New Zealand, Deshma’s love for nature is as vast as her hobbies. She climbs mountains despite being terrified of heights, bakes stunning treats through her own pâtisserie business, and plays competitive tennis when she’s not sampling water as a Safeswim intern.

Driving to Auckland’s beaches and waterways for Safeswim makes her work feel like an adventure, blending her passion for the outdoors with meaningful environmental action. Whether she’s scaling rocks or analysing them, Deshma’s enthusiasm reminds us all to chase what we love — even if it’s scary sometimes.

Olivia Wentzell: where wildlife meets waterways

If animals, photography, and travel had a mascot, it would be Olivia Wentzell. Splitting her early years between Montana and Nelson, Olivia developed a “dream big” mindset. Now pursuing a degree in zoology, Olivia balances volunteering at Auckland Zoo and a wild bird hospital with her role on the Overland Flow Path Compliance Team.

Through site visits and stormwater projects, she’s learning how protecting waterways supports biodiversity and marine life. She sees her internship as more than a stepping stone — it’s a chance to make lasting connections while safeguarding New Zealand’s future ecosystems.

The answer to “why us?”

So, why us? Because we care. And that’s what makes all the difference.

It’s not about the miles we’ve travelled, the hobbies we’ve mastered, or the degrees we’re earning. It’s about our shared drive to make a difference. Every one of us, from bakers to backpackers, climbers to conservationists, brings passion to Auckland Council.

So, after 11 weeks packed with hard-work, meetings, and lots of laughter, the 2025 Intern Programme has come to a close.

Clarke Mckinney, Auckland Councils Healthy Waters Recourse Management Team Manager, and the interns work dad, thinks this group of interns has the potential to go far.

“The interns have exceeded all expectations: their curiosity, passion and skill have brought immense value to the council, and we look forward to repeating the success of this programme next year!”

More information on Auckland Council’s graduate programme is available via the Auckland Council Careers website.

Written by Auckland Council intern Kaavya Ghoshal of Healthy Waters.

MIL OSI New Zealand News –

February 13, 2025
MIL-OSI Security: Syracuse Man Sentenced to 30 Years in Prison for Sexual Exploitation of a Child and Distribution of Child Sexual Abuse Material

Source: Office of United States Attorneys

SYRACUSE, NEW YORK – William Seneca, Sr., age 65, was sentenced today to 30 years in federal prison to be followed by 15 years of supervised release for sexual exploitation of a child and distribution of child sexual abuse material. United States Attorney Carla B. Freedman and Erin Keegan, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

As part of his prior guilty plea, Seneca admitted that, from approximately 2000 through 2008, he engaged in sexual conduct with a minor male child, starting when the child was about seven years old. On several different occasions during that period, Seneca created sexually explicit images depicting that child. Seneca also admitted that, on at least one occasion, he distributed the material he created to someone in Canada.

In addition to the terms of imprisonment and supervised release, the district court also ordered Seneca to pay $1,141.14 in restitution to the victim, and he will have to register as a sex offender upon his release from prison.

This case was investigated by HSI with the assistance of the New York State Police and is being prosecuted by Assistant United States Attorney Michael D. Gadarian as part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

MIL Security OSI –

February 13, 2025
MIL-OSI USA: ICYMI: Tuberville in Yellowhammer: President Trump’s tariffs are Making America Great Again

US Senate News:

Source: United States Senator Tommy Tuberville (Alabama)

“President Trump is keeping his promises to strengthen and revitalize our nation’s economy”

WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) penned an op-ed in Yellowhammer praising President Donald Trump’s recent implementation of reciprocal tariffs to ensure fairness and bolster our national security.

Read excerpts from the piece below or here.

“The media is in full meltdown mode after President Trump imposed duties and retaliatory tariffs this week on countries who have been ripping us off for decades. Apparently, globalists and Democrats are just fine with other countries imposing tariffs on U.S. exports. But, when it comes to President Trump trying to establish a level playing field for domestic producers, well, that’s a bridge too far.

No one should be remotely surprised by President Trump’s actions. He campaigned on this platform three times and has been crystal clear on his intentions – now he is following through on his promises. He views tariffs both as a negotiating tool to get other countries to bend to his will and as a way to boost American manufacturing and put America First.

President Trump has his work cut out for him after the disastrous past four years under President Biden. The Biden administration made it clear to our friends and foes alike that the globalist agenda would take precedent over the safety and wellbeing of the American people.

Thankfully, those days are over. The American people gave President Donald J. Trump a clear mandate to restore our country’s superpower status and put America First. That starts with securing our borders. That’s why President Trump threatened to impose 25% tariffs on Mexico and Canada last week unless they start working with the U.S. to secure our borders and stop the flow of fentanyl into our nation.

Over the past four years, the Mexican government turned a blind eye while caravans of illegal aliens flowed through Mexico into the United States. Thousands of women and children were trafficked and raped along the way. Drug cartels were uninhibited from smuggling illicit drugs across the border. That is, until President Trump re-entered the White House on January 20.

President Trump correctly understands that Mexico’s economy is heavily dependent on its trade relationship with the U.S. In fact, more than 80 percent of Mexico’s exports come to the United States. Mexico’s economy would almost instantly feel the effects of a 25 percent tariff, leaving Mexico’s President Claudia Sheinbaum no choice but to come to the negotiating table with master dealmaker Donald Trump. As a result, within hours of President Trump’s announcement, Mexico caved by agreeing to start helping the United States secure the border and crack down on the cartel issue.

Our neighbor to the North also caved to President Trump after a 25 percent tariff was threatened on Canadian imports. Not only are illicit drugs like fentanyl coming into our country from Mexico, but there has also been a 2,050 percent increase from FY 2023 in drugs coming across our Northern Border. In the last fiscal year alone, enough fentanyl was seized at our Northern Border to kill 9.8 million Americans. This is a serious problem.

Thanks to President Trump, our North American neighbors to the North and South are making changes that will protect American citizens from deadly drugs, criminals, and human traffickers.

In addition to using tariffs as a negotiating tool, President Trump also views tariffs as a way to right the wrongs of past, ineffective trade deals. That’s why this week he is imposing a 25 percent tariff on steel and aluminum. Contrary to what the media would tell you, this isn’t unprecedented. […]

The tariffs being imposed this week are an important step in President Trump’s plan to restore fairness to trade, boost domestic manufacturing and put American consumers and producers first. America has some of the best and brightest manufacturers, producers, farmers, and businesses. We shouldn’t be going to other countries for products we can make right here at home.

Three weeks into his presidency, President Trump is keeping his promises to strengthen and revitalize our nation’s economy, stem the flow of illicit drugs and illegal immigration, and make sure our trade deals are fair for taxpayers and the American worker. President Trump is utilizing every tool at his disposal, including tariffs, to usher in the Golden Age of America.”

MORE:
Tuberville Speaks On Importance Of Boosting U.S. Economy To Help Struggling Seniors
Tuberville Praises President Trump For Making Tariffs Great Again
ICYMI: Tuberville Joins “The Bottom Line” on Fox Business
Tuberville Calls for Increase in Agricultural Exports
Tuberville Introduces Bill to End Reliance on Russia, Boost Alabama Businesses and Workers
Tuberville Cosponsors Legislation to Protect American Manufacturing
Tuberville Continues Advocating for Alabama’s Ag Interests in Farm Bill Hearing

Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

MIL OSI USA News –

February 13, 2025

MIL-OSI: Precision Drilling Announces 2024 Fourth Quarter and Year End Unaudited Financial Results

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Feb. 12, 2025 (GLOBE NEWSWIRE) — This news release contains “forward-looking information and statements” within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the “Cautionary Statement Regarding Forward-Looking Information and Statements” later in this news release. This news release contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings before income taxes, gain on acquisition, loss on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, loss on asset decommissioning, gain on asset disposals and depreciation and amortization), Funds Provided by (Used in) Operations, Net Capital Spending, Working Capital and Total Long-term Financial Liabilities. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) and may not be comparable to similar measures used by other companies. See “Financial Measures and Ratios” later in this news release.

Financial Highlights and 2025 Capital Allocation Plans

Revenue in the fourth quarter was $468 million, an 8% decrease from 2023 as activity increases in Canadian drilling, well servicing, and international were more than offset by lower activity and day rates in the U.S.
Adjusted EBITDA⁽¹⁾ was $121 million in the quarter and included $15 million of share-based compensation charges, $4 million for rig reactivation costs and $4 million of non-recurring charges. In 2023, fourth quarter Adjusted EBITDA was $151 million and included share-based compensation charges of $13 million.
Net earnings attributable to shareholders was $15 million or $1.06 per share in the fourth quarter compared to $147 million or $10.42 per share as net earnings in 2023 included an income tax recovery of $69 million and a gain on acquisition of $26 million.
In 2024, we invested $217 million into our fleet and infrastructure, including multiple contracted rig upgrades and the strategic purchase of drill pipe for use in 2025. We expect to invest $225 million into our fleet and infrastructure in 2025, which may fluctuate with activity levels and customer contract upgrade opportunities.
For the year ended December 31, 2024, we achieved our annual debt reduction and return of shareholder capital targets, reducing debt by $176 million and repurchasing $75 million of common shares while building cash by $20 million. Precision has consistently met or exceeded its capital allocation goals since implementation in 2016.
For 2025, we expect to reduce debt by at least $100 million in 2025 and have increased our long-term debt reduction target to $700 million and extended our debt reduction period to 2027. In 2025, we plan to increase direct shareholder returns to 35% to 45% of free cash flow, before debt repayments. To the extent excess cash is generated these allocations may be increased.

Operational Highlights

Demand for our services continues to be strong and in 2024 our Canadian and international drilling rig utilization days increased 12% and 37%, respectively, while our well servicing rig operating hours increased 26% over 2023.
In the fourth quarter, Canada’s activity averaged 65 active drilling rigs versus 64 in the same quarter last year. Our Super Triple and Super Single rigs remain in high demand and are nearly fully utilized. Canadian revenue per utilization day was $35,675, up from $34,616 in the fourth quarter of 2023.
Our U.S. activity has remained relatively consistent since mid-2024. We averaged 34 drilling rigs in the fourth quarter with revenue per utilization day of US$30,991 versus 45 drilling rigs at US$34,452 in 2023’s fourth quarter.
International activity increased 6% over the same period last year while revenue per utilization day was US$49,636 compared to US$49,872 in the fourth quarter of 2023.
Service rig operating hours in the fourth quarter totaled 59,834, representing a 6% increase over the same quarter last year partially driven by the CWC Energy Services Corp. (CWC) acquisition in November of 2023.

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

MANAGEMENT COMMENTARY

“Through 2024 Precision demonstrated remarkable market resilience despite weaker than expected U.S. customer demand and late year customer budget exhaustion in Canada. We continued our long-term record of meeting or exceeding our capital allocation targets every year since 2016 with $176 million of debt reduction, $75 million of share buybacks, while increasing our cash balance by $20 million. In the fourth quarter, approximately $8 million of reactivation costs and non-recurring items impacted our financial results, along with slightly lower than expected Canadian customer demand. Despite these fourth quarter headwinds we continued investing in our core business lines, including purchasing approximately $18 million of drill pipe in advance of potential tariffs, investing $3 million to begin reactivating two idle Canadian Super Single rigs to meet demand in 2025, and upgrading one rig for Canadian heavy oil pad drilling opportunities.

“The outlook for Canada remains very strong given robust heavy oil activity following the startup of the Trans Mountain pipeline expansion in May 2024 and the imminent startup of LNG Canada in mid-2025. My enthusiasm is further underpinned by the pace of rig reactivations following the seasonal Christmas break and the stable winter activity we have experienced to date with 81 rigs working since mid-January. The uncertainty introduced by potential U.S. tariffs on Canadian oil and gas exports, has been tempered and we have not experienced any change in customer demand or their longer-term capital spending plans.

“In Canada, our drilling utilization days increased 12% over 2023 and our Super Triple and Super Single rigs, which represent approximately 80% of our Canadian fleet, are nearly fully utilized. Demand for our Super Triple fleet, which is the preferred rig for Montney drilling, is driven by robust condensate fundamentals and the startup of LNG Canada this year. Demand for our Super Single fleet is driven by increased activity in heavy oil targeted areas as customers are benefiting from improved commodity pricing, following the startup of Trans Mountain, and a softening Canadian dollar.

“Internationally, our drilling utilization days increased 37% in 2024 following the recertification and reactivation of four rigs in 2023. In 2024, we had eight rigs working on term contracts, five in Kuwait and three in the Kingdom of Saudi Arabia. The majority of these rigs are under five-year term contracts that extend into 2027 and 2028, providing predictable cash flow for the next few years.

“In our Completion and Production Services business, our well servicing operating hours increased 26% over 2023 levels following the successful integration of CWC, where we achieved significant operating synergies. Our Completion and Production Services Adjusted EBITDA increased 30% year over year, which was slightly below our expectation due to late year customer budget exhaustion impacting our activity and rental business. I am very pleased with how we have transformed our Completion and Production Services business with two strategic tuck-in acquisitions. The High Arctic and CWC acquisitions more than doubled our Completion and Production revenue and Adjusted EBITDA since 2021 and solidified Precision as the premier well service provider in Canada.

“During the year, Precision generated $482 million of cash provided by operations, allowing us to meet our capital return targets and invest $217 million into our fleet and infrastructure, which included multiple drilling rig upgrades and the strategic purchase of drill pipe for use in 2025. We expect to invest approximately $225 million in 2025, which reflects a weaker Canadian dollar and includes expected customer funded upgrades across our North American operations, including approximately $30 million in US fleet upgrades for customers targeting extended reach laterals.

“With sustained free cash flow as a key differentiator of our business, we remain focused on reducing debt and increasing direct returns to shareholders. In 2025, we expect to reduce debt by at least $100 million, reinforcing our commitment to achieving a sustained Net Debt to Adjusted EBITDA ratio⁽¹⁾ of below 1.0 times. As we continue to realize the benefits of lower debt levels, we have increased our long-term debt reduction target by $100 million to $700 million and extended the debt reduction period by one year to 2027. In 2025, our goal is to increase our direct capital returns to shareholders by allocating 35% to 45% of free cash flow, before debt repayments, while continuing to move towards 50% of free cash flow thereafter, with excess cash potentially used to increase these allocations.

“I would like to thank our employees for their dedication and commitment to serving our customers, and our shareholders for their continued support. With positive long-term fundamentals associated with global oil and natural gas demand and particularly the unique fundamentals driving drilling activity in our core geographic markets, I am confident we will continue to drive shareholder value,” concluded Mr. Neveu.

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

SELECT FINANCIAL AND OPERATING INFORMATION
Financial Highlights

	For the three months ended December 31,								For the year ended December 31,
(Stated in thousands of Canadian dollars, except per share amounts)		2024		2023		% Change				2024		2023		% Change
Revenue		468,171		506,871			(7.6	)		1,902,328		1,937,854			(1.8	)
Adjusted EBITDA⁽¹⁾		120,526		151,231			(20.3	)		521,221		611,118			(14.7	)
Net earnings		14,930		146,722			(89.8	)		111,330		289,244			(61.5	)
Net earnings attributable to shareholders		14,795		146,722			(89.9	)		111,195		289,244			(61.6	)
Cash provided by operations		162,791		170,255			(4.4	)		482,083		500,571			(3.7	)
Funds provided by operations⁽¹⁾		120,535		145,189			(17.0	)		463,372		533,409			(13.1	)

Cash used in investing activities		61,954		57,627			7.5			202,986		214,784			(5.5	)
Capital spending by spend category⁽¹⁾
Expansion and upgrade		21,565		24,459			(11.8	)		52,066		63,898			(18.5	)
Maintenance and infrastructure		37,335		54,388			(31.4	)		164,632		162,851			1.1
Proceeds on sale		(8,570	)	(3,117	)		174.9			(30,395	)	(23,841	)		27.5
Net capital spending⁽¹⁾		50,330		75,730			(33.5	)		186,303		202,908			(8.2	)

Net earnings attributable to shareholders per share:
Basic		1.06		10.42			(89.8	)		7.81		21.03			(62.8	)
Diluted		1.06		9.81			(89.2	)		7.81		19.53			(60.0	)
Weighted average shares outstanding:
Basic		13,982		14,084			(0.7	)		14,229		13,754			3.5
Diluted		13,987		15,509			(9.8	)		14,234		15,287			(6.9	)

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}Operating Highlights

	For the three months ended December 31,							For the year ended December 31,
	2024		2023		% Change			2024		2023		% Change
Contract drilling rig fleet		214		214		–			214		214		–
Drilling rig utilization days:
U.S.		3,084		4,138		(25.5	)		12,969		17,961		(27.8	)
Canada		6,018		5,909		1.8			23,685		21,156		12.0
International		736		693		6.2			2,928		2,132		37.3
Revenue per utilization day:
U.S. (US$)		30,991		34,452		(10.0	)		32,531		35,040		(7.2	)
Canada (Cdn$)		35,675		34,616		3.1			34,797		33,151		5.0
International (US$)		49,636		49,872		(0.5	)		51,227		50,840		0.8
Operating costs per utilization day:
U.S. (US$)		21,698		21,039		3.1			22,009		20,401		7.9
Canada (Cdn$)		21,116		19,191		10.0			20,424		19,225		6.2

Service rig fleet		170		183		(7.1	)		170		183		(7.1	)
Service rig operating hours		59,834		56,683		5.6			254,224		201,627		26.1

Drilling Activity

	Average for the quarter ended 2023								Average for the quarter ended 2024
	Mar. 31		June 30		Sept. 30		Dec. 31			Mar. 31		June 30		Sept. 30		Dec. 31
Average Precision active rig count⁽¹⁾:
U.S.		60		51		41		45			38		36		35		34
Canada		69		42		57		64			73		49		72		65
International		5		5		6		8			8		8		8		8
Total		134		98		104		117			119		93		115		107

^{(1) Average number of drilling rigs working or moving.}

Financial Position

(Stated in thousands of Canadian dollars, except ratios)	December 31, 2024		December 31, 2023⁽²⁾
Working capital⁽¹⁾		162,592		136,872
Cash		73,771		54,182
Long-term debt		812,469		914,830
Total long-term financial liabilities⁽¹⁾		888,173		995,849
Total assets		2,956,315		3,019,035
Long-term debt to long-term debt plus equity ratio ⁽¹⁾		0.33		0.37

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}^{(2) Comparative period figures were restated due to a change in accounting policy. See “CHANGE IN ACCOUNTING POLICY.”}

Summary for the three months ended December 31, 2024:

Revenue decreased to $468 million compared with $507 million in the fourth quarter of 2023 as a result of lower U.S. activity and day rates, partially offset by higher Canadian and international activity.
Adjusted EBITDA was $121 million in the quarter and included $15 million of share-based compensation charges, $4 million for rig reactivation costs and $4 million of non-recurring charges. In 2023, fourth quarter Adjusted EBITDA was $151 million and included share-based compensation of $13 million. Please refer to “Other Items” later in this news release for additional information on share-based compensation charges.
Adjusted EBITDA as a percentage of revenue was 26% as compared with 30% in 2023.
Net earnings attributable to shareholders was $15 million compared to $147 million in the same quarter last year as net earnings in 2023 included an income tax recovery of $69 million and a gain on acquisition of $26 million.
Generated cash provided by operations of $163 million, reduced debt by $25 million through the partial redemption of our 2026 unsecured senior notes and repayment of our U.S. Real Estate Credit Facility, repurchased $25 million of common shares under our Normal Course Issuer Bid (NCIB), and ended the quarter with $74 million of cash and more than $575 million of available liquidity.
U.S. revenue per utilization day, excluding the impact of idle but contracted rigs was US$30,813 compared with US$32,819 in 2023, a decrease of 6%. Sequentially, revenue per utilization day, excluding idle but contracted rigs, was down 6% compared with the third quarter of 2024. Fourth quarter U.S. revenue per utilization day was US$30,991 compared with US$34,452 in 2023. The decrease was primarily the result of lower fleet average day rates, idle but contracted rig revenue and recoverable costs. We recognized US$1 million of revenue from idle but contracted rigs in the quarter as compared with US$7 million in 2023.
U.S. operating costs per utilization day increased to US$21,698 compared with US$21,039 in 2023. The increase was mainly due to higher rig operating costs and fixed costs spread over lower activity, offset by lower recoverable costs and repairs and maintenance. Sequentially, operating costs per utilization day were down 2% due to lower recoverable costs.
Canadian revenue per utilization day was $35,675, an increase from the $34,616 realized in 2023 due to higher average day rates and recoverable costs. Sequentially, revenue per utilization day increased $3,350 due to higher boiler revenue and higher fleet-wide average day rates.
Canadian operating costs per utilization day increased to $21,116, compared with $19,191 in 2023, resulting from higher repairs and maintenance, rig reactivation costs and impact of labour rate increases. Sequentially, daily operating costs increased $1,668 and were the result of higher labour expenses due to rate increases, recoverable expenses and repairs and maintenance.
Internationally, fourth quarter revenue increased 6% from 2023 as we realized revenue of US$37 million versus US$35 million in the prior year. Our higher revenue was primarily the result of a 6% increase in activity, which was negatively impacted by a planned rig recertification accounting for 21 non-billable utilization days in October. International revenue per utilization day was US$49,636 compared with US$49,872 in 2023.
Completion and Production Services revenue was $69 million, an increase of $6 million from 2023, as our fourth quarter service rig operating hours increased 6%, reflecting the successful integration of the CWC acquisition in November 2023.
General and administrative expenses were $35 million as compared with $39 million in 2023 primarily due to lower non-recurring costs associated with our CWC acquisition in 2023, partially offset by higher share-based compensation charges.
Net finance charges were $16 million, a decrease of $3 million compared with 2023 as a result of lower interest expense on our outstanding debt balance.
Capital expenditures were $59 million compared with $79 million in 2023 and by spend category included $22 million for expansion and upgrades and $37 million for the maintenance of existing assets, infrastructure, and intangible assets.
Income tax expense for the quarter was $6 million as compared with a recovery of $69 million in 2023. During the fourth quarter, we continue to not recognize deferred tax assets on certain international operating losses.

Summary for the year ended December 31, 2024:

Revenue for the year was $1,902 million, comparable with 2023.
Adjusted EBITDA was $521 million as compared with $611 million in 2023. Our lower Adjusted EBITDA was primarily attributed to decreased U.S. drilling results and $13 million of higher share-based compensation, partially offset by the strengthening of Canadian and international results.
Net earnings attributable to shareholders was $111 million compared to $289 million in the prior year. Our lower current year net earnings was due to the impact of decreased U.S. drilling results, higher income tax expense of $67 million and the gain on acquisition of $26 million recognized in 2023.
Cash provided by operations was $482 million as compared with $501 million in 2023. Funds provided by operations were $463 million, a decrease of $70 million from the comparative period.
General and administrative costs were $132 million, an increase of $10 million from 2023 primarily due to higher share-based compensation charges.
Net finance charges were $70 million, $14 million lower than 2023 due to our lower interest expense on our outstanding debt balance.
Capital expenditures were $217 million in 2024, a decrease of $10 million from 2023. Capital spending by spend category included $52 million for expansion and upgrades and $165 million for the maintenance of existing assets, infrastructure, and intangible assets.
Reduced debt by $176 million from the partial redemption of our 2026 unsecured senior notes and repayment of our Canadian and U.S. Real Estate Credit Facilities.
Repurchased $75 million of common shares under our NCIB.

STRATEGY

Precision’s vision is to be globally recognized as the High Performance, High Value provider of land drilling services. We work toward this vision by defining and measuring our results against strategic priorities that we establish at the beginning of every year.

Below we summarize the results of our 2024 strategic priorities:

Concentrate organizational efforts on leveraging our scale and generating free cash flow.
- Generated cash provided from operations of $482 million, allowing us to meet our debt reduction and share repurchase goals and build our cash balance by $20 million.
- Increased utilization of our Super Single and tele double rigs, driving Canadian drilling activity up 12% over 2023.
- Successfully integrated our 2023 CWC acquisition, increasing Completion and Production Services operating hours and Adjusted EBITDA 26% and 30%, respectively, year over year. Achieved our $20 million annual synergies target from the acquisition.
- Internationally, increased our activity 37% year over year and realized US$150 million of contract drilling revenue compared to US$108 million in 2023.
Reduce debt by between $150 million and $200 million and allocate 25% to 35% of free cash flow before debt repayments for share repurchases.
- Reduced debt by $176 million and ended the year with a Net Debt to Adjusted EBITDA ratio of approximately 1.4 times. On track to achieve a sustained Net Debt to Adjusted EBITDA ratio of below 1.0 times.
- Returned $75 million to shareholders through share repurchases, achieving the midpoint of our target range.
- Renewed our NCIB in September, allowing repurchases of up to 10% of the public float.
Continue to deliver operational excellence in drilling and service rig operations to strengthen our competitive position and extend market penetration of our Alpha^TMand EverGreen^TMproducts.
- Increased our Canadian drilling rig utilization days and well service rig operating hours year over year, maintaining our position as the leading provider of high-quality and reliable services in Canada.
- Invested $52 million in expansion and upgrade capital to enhance our drilling rigs.
- Nearly doubled our EverGreen^TM revenue year over year.
- Continued to expand our EverGreen^TM product offering on our Super Single rigs with LED mast lighting and hydrogen injection systems.

2025 Strategic Priorities

Maximize free cash flow through disciplined capital deployment and strict cost management.

Enhance shareholder returns through debt reduction and share repurchases.

Reduce debt by at least $100 million in 2025 and debt by $700 million between 2022 and 2027, while remaining committed to achieving a sustained Net Debt to Adjusted EBITDA ratio of below 1.0 times.
Allocate 35% to 45% of free cash flow, before debt repayments, directly to shareholders and continue moving direct shareholder capital returns toward 50% of free cash flow thereafter.
Grow revenue in existing service lines through contracted upgrades, optimized pricing and utilization, and opportunistic consolidating tuck-in acquisitions.

OUTLOOK

The long-term outlook for global energy demand remains positive with rising demand for all types of energy including oil and natural gas driven by economic growth, increasing demand from third-world regions, and emerging energy sources of power demand. Oil prices are constructive as OPEC+ continues to honour its production quotas, producers remain committed to returning capital to shareholders versus increasing production, and geopolitical issues continue to threaten supply. In Canada, the Trans Mountain pipeline expansion, which became operational in May of 2024, combined with the imminent startup of LNG Canada are projected to provide significant tidewater access for Canadian crude oil and natural gas, supporting additional Canadian drilling activity. In the U.S., the next wave of Liquefied Natural Gas (LNG) export terminals is expected to add approximately 11 bcf/d of export capacity from 2025 to 2028, supporting additional U.S. natural gas drilling activity. Coal retirements and a build-out of artificial intelligence data centers could provide further support for natural gas drilling.

Our Canadian drilling activity continues to be robust in 2025 and we currently have 81 rigs operating and expect this activity level to continue until spring breakup. Our Super Single fleet is near full utilization as heavy oil customers are benefiting from improved commodity pricing and a weak Canadian dollar. Our Super Triple fleet, the preferred rig for Montney drilling, is also nearly fully utilized, and with the expected startup of LNG Canada in mid-2025, rig demand could exceed supply. Overall, we expect our Canadian drilling activity to be up year over year with near full utilization of our Super Series rigs, which should support day rates and increase demand for term contracts as customers secure rigs to ensure fulfillment of their development programs. The uncertainty introduced by potential U.S. tariffs on Canadian oil and gas exports, has been tempered and we have not experienced any change in customer demand or their longer-term plans.

In the U.S., we currently have 34 rigs earning revenue, which has been relatively consistent since mid-2024. Drilling activity growth remains constrained as producers continue to focus on shareholder returns rather than growth, while volatile commodity prices, customer consolidation, and drilling and completion efficiencies have restricted activity growth. If commodity prices remain stable and around today’s level, we expect drilling demand to begin to improve in the second half and gain momentum through the remainder of 2025 as new LNG export capacity is added and customers seek to maintain or possibly increase production levels.

Internationally, we have eight rigs working on term contracts, five in Kuwait and three in the Kingdom of Saudi Arabia. The majority of these rigs are under five-year term contracts that extend into 2027 and 2028, providing predictable cash flow for the next few years. We continue to bid our remaining idle rigs within the region and remain optimistic in our ability to secure rig reactivations.

As the premier well service provider in Canada, the outlook for this business remains positive. We expect the Trans Mountain pipeline expansion and LNG Canada to drive more service-related activity, while increased regulatory spending requirements are expected to result in more abandonment work. Customer demand should remain strong, and with continued labour constraints, we expect firm pricing into the foreseeable future.

Contracts

The following chart outlines the average number of drilling rigs under term contract by quarter as at February 12, 2025. For those quarters ending after December 31, 2024, this chart represents the minimum number of term contracts from which we will earn revenue. We expect the actual number of contracted rigs to vary in future periods as we sign additional term contracts.

As at February 12, 2025	Average for the quarter ended 2024								Average		Average for the quarter ended 2025								Average
	Mar. 31		June 30		Sept. 30		Dec. 31		2024		Mar. 31		June 30		Sept. 30		Dec. 31		2025
Average rigs under term contract:
U.S.		20		17		17		16		18		15		13		8		6		11
Canada		24		22		23		23		23		20		19		18		14		18
International		8		8		8		8		8		8		8		7		7		8
Total		52		47		48		47		49		43		40		33		27		37

SEGMENTED FINANCIAL RESULTS

Precision’s operations are reported in two segments: Contract Drilling Services, which includes our drilling rig, oilfield supply and manufacturing divisions; and Completion and Production Services, which includes our service rig, rental and camp and catering divisions.

	For the three months ended December 31,									For the year ended December 31,
(Stated in thousands of Canadian dollars)		2024		2023			% Change				2024		2023			% Change
Revenue:
Contract Drilling Services		402,610			446,503			(9.8	)		1,617,735			1,704,265			(5.1	)
Completion and Production Services		68,830			62,459			10.2			294,817			240,716			22.5
Inter-segment eliminations		(3,269	)		(2,091	)		56.3			(10,224	)		(7,127	)		43.5
		468,171			506,871			(7.6	)		1,902,328			1,937,854			(1.8	)
Adjusted EBITDA:⁽¹⁾
Contract Drilling Services		125,683			162,459			(22.6	)		532,345			630,761			(15.6	)
Completion and Production Services		15,895			12,193			30.4			66,681			51,224			30.2
Corporate and Other		(21,052	)		(23,421	)		(10.1	)		(77,805	)		(70,867	)		9.8
		120,526			151,231			(20.3	)		521,221			611,118			(14.7	)

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

SEGMENT REVIEW OF CONTRACT DRILLING SERVICES

	For the three months ended December 31,								For the year ended December 31,
(Stated in thousands of Canadian dollars, except where noted)		2024		2023		% Change				2024		2023		% Change
Revenue		402,610		446,503			(9.8	)		1,617,735		1,704,265			(5.1	)
Expenses:
Operating		264,858		270,303			(2.0	)		1,041,068		1,030,053			1.1
General and administrative		12,069		13,741			(12.2	)		44,322		43,451			2.0
Adjusted EBITDA⁽¹⁾		125,683		162,459			(22.6	)		532,345		630,761			(15.6	)
Adjusted EBITDA as a percentage of revenue⁽¹⁾		31.2	%	36.4	%					32.9	%	37.0	%

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

United States onshore drilling statistics:⁽¹⁾	2024				2023
	Precision		Industry⁽²⁾		Precision		Industry⁽²⁾
Average number of active land rigs for quarters ended:
March 31		38		602		60		744
June 30		36		583		51		700
September 30		35		565		41		631
December 31		34		569		45		603
Year to date average		36		580		49		670

^{(1) United States lower 48 operations only.}
^{(2) Baker Hughes rig counts.}

Canadian onshore drilling statistics:⁽¹⁾	2024				2023
	Precision		Industry⁽²⁾		Precision		Industry⁽²⁾
Average number of active land rigs for quarters ended:
March 31		73		208		69		221
June 30		49		134		42		117
September 30		72		207		57		188
December 31		65		194		64		181
Year to date average		65		186		58		177

^{(1) Canadian operations only.}
^{(2) Baker Hughes rig counts.}

SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES

	For the three months ended December 31,								For the year ended December 31,
(Stated in thousands of Canadian dollars, except where noted)		2024		2023		% Change				2024		2023		% Change
Revenue		68,830		62,459			10.2			294,817		240,716			22.5
Expenses:
Operating		50,714		48,297			5.0			217,842		181,622			19.9
General and administrative		2,221		1,969			12.8			10,294		7,870			30.8
Adjusted EBITDA⁽¹⁾		15,895		12,193			30.4			66,681		51,224			30.2
Adjusted EBITDA as a percentage of revenue⁽¹⁾		23.1	%	19.5	%					22.6	%	21.3	%
Well servicing statistics:
Number of service rigs (end of period)		170		183			(7.1	)		170		183			(7.1	)
Service rig operating hours		59,834		56,683			5.6			254,224		201,627			26.1
Service rig operating hour utilization		38	%	38	%					42	%	42	%

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

OTHER ITEMS

Share-based Incentive Compensation Plans

We have several cash and equity-settled share-based incentive plans for non-management directors, officers, and other eligible employees. Our accounting policies for each share-based incentive plan can be found in our 2023 Annual Report.

A summary of expense amounts under these plans during the reporting periods are as follows:

For the three months ended
December 31,

For the year ended
December 31,

(Stated in thousands of Canadian dollars)

2024

2023

2024

2023

Cash settled share-based incentive plans

14,018

11,972

42,828

32,063

Equity settled share-based incentive plans

1,071

697

4,588

2,531

Total share-based incentive compensation plan expense

15,089

12,669

47,416

34,594

Allocated:

Operating

3,709

2,765

11,868

9,497

General and Administrative

11,380

9,904

35,548

25,097

15,089

12,669

47,416

34,594

FINANCIAL MEASURES AND RATIOS

Non-GAAP Financial Measures

We reference certain Non-Generally Accepted Accounting Principles (Non-GAAP) measures that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.

Adjusted EBITDA

We believe Adjusted EBITDA (earnings before income taxes, gain on acquisition, loss on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, loss on asset decommissioning, gain on asset disposals and depreciation and amortization), as reported in our Condensed Interim Consolidated Statements of Net Earnings and our reportable operating segment disclosures, is a useful measure because it gives an indication of the results from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.

The most directly comparable financial measure is net earnings.

	For the three months ended December 31,					For the year ended December 31,
(Stated in thousands of Canadian dollars)		2024		2023			2024		2023
Adjusted EBITDA by segment:
Contract Drilling Services		125,683		162,459			532,345		630,761
Completion and Production Services		15,895		12,193			66,681		51,224
Corporate and Other		(21,052	)	(23,421	)		(77,805	)	(70,867	)
Adjusted EBITDA		120,526		151,231			521,221		611,118
Depreciation and amortization		82,210		78,734			309,314		297,557
Gain on asset disposals		(1,913	)	(8,883	)		(16,148	)	(24,469	)
Loss on asset decommissioning		—		9,592			—		9,592
Foreign exchange		1,487		(773	)		2,259		(1,667	)
Finance charges		16,281		19,468			69,753		83,414
Gain on repurchase of unsecured notes		—		—			—		(137	)
Loss on investments and other assets		1,814		735			1,484		6,810
Gain on acquisition		—		(25,761	)		—		(25,761	)
Incomes taxes		5,717		(68,603	)		43,229		(23,465	)
Net earnings		14,930		146,722			111,330		289,244
Non-controlling interests		135		—			135		—
Net earnings attributable to shareholders		14,795		146,722			111,195		289,244


*Funds Provided by (Used in) Operations*	We believe funds provided by (used in) operations, as reported in our Condensed Interim Consolidated Statements of Cash Flows, is a useful measure because it provides an indication of the funds our principal business activities generate prior to consideration of working capital changes, which is primarily made up of highly liquid balances. The most directly comparable financial measure is cash provided by (used in) operations.

*Net Capital Spending*	We believe net capital spending is a useful measure as it provides an indication of our primary investment activities. The most directly comparable financial measure is cash provided by (used in) investing activities. Net capital spending is calculated as follows:
		For the three months ended December 31,					For the year ended December 31,
(Stated in thousands of Canadian dollars)			2024		2023			2024		2023
Capital spending by spend category
Expansion and upgrade			21,565		24,459			52,066		63,898
Maintenance, infrastructure and intangibles			37,335		54,388			164,632		162,851
			58,900		78,847			216,698		226,749
Proceeds on sale of property, plant and equipment			(8,570	)	(3,117	)		(30,395	)	(23,841	)
Net capital spending			50,330		75,730			186,303		202,908
Business acquisitions			—		646			—		28,646
Proceeds from sale of investments and other assets			—		—			(3,623	)	(10,013	)
Purchase of investments and other assets			718		61			725		5,343
Receipt of finance lease payments			(208	)	(191	)		(799	)	(255	)
Changes in non-cash working capital balances			11,114		(18,619	)		20,380		(11,845	)
Cash used in investing activities			61,954		57,627			202,986		214,784

Working Capital

We define working capital as current assets less current liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

Working capital is calculated as follows:

	December 31,		December 31,
(Stated in thousands of Canadian dollars)		2024		2023
Current assets		501,284		510,881
Current liabilities		338,692		374,009
Working capital		162,592		136,872

Total Long-term Financial Liabilities

We define total long-term financial liabilities as total non-current liabilities less deferred tax liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

Total long-term financial liabilities is calculated as follows:

	December 31,		December 31,
(Stated in thousands of Canadian dollars)		2024		2023
Total non-current liabilities		935,624		1,069,364
Deferred tax liabilities		47,451		73,515
Total long-term financial liabilities		888,173		995,849

Non-GAAP Ratios
We reference certain additional Non-GAAP ratios that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.

*Adjusted EBITDA % of Revenue*			We believe Adjusted EBITDA as a percentage of consolidated revenue, as reported in our Condensed Interim Consolidated Statements of Net Earnings, provides an indication of our profitability from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.

*Long-term debt to long-term debt plus equity*			We believe that long-term debt (as reported in our Condensed Interim Consolidated Statements of Financial Position) to long-term debt plus equity (total shareholders’ equity as reported in our Condensed Interim Consolidated Statements of Financial Position) provides an indication of our debt leverage.

*Net Debt to Adjusted EBITDA*			We believe that the Net Debt (long-term debt less cash, as reported in our Condensed Interim Consolidated Statements of Financial Position) to Adjusted EBITDA ratio provides an indication of the number of years it would take for us to repay our debt obligations.

Supplementary Financial Measures
We reference certain supplementary financial measures that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.

*Capital Spending by Spend Category*			We provide additional disclosure to better depict the nature of our capital spending. Our capital spending is categorized as expansion and upgrade, maintenance and infrastructure, or intangibles.

CHANGE IN ACCOUNTING POLICY

Precision adopted Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants – Amendments to IAS 1, as issued in 2020 and 2022. These amendments apply retrospectively for annual reporting periods beginning on or after January 1, 2024 and clarify requirements for determining whether a liability should be classified as current or non-current. Due to this change in accounting policy, there was a retrospective impact on the comparative Statement of Financial Position pertaining to the Corporation’s Deferred Share Unit (DSU) plan for non-management directors which are redeemable in cash or for an equal number of common shares upon the director’s retirement. In the case of a director retiring, the director’s respective DSU liability would become payable and the Corporation would not have the right to defer settlement of the liability for at least twelve months. As such, the liability is impacted by the revised policy. The following changes were made to the Statement of Financial Position:

As at January 1, 2023, accounts payable and accrued liabilities increased by $12 million and non-current share-based compensation liability decreased by $12 million.
As at December 31, 2023, accounts payable and accrued liabilities increased by $8 million and non-current share-based compensation liability decreased by $8 million.

The Corporation’s other liabilities were not impacted by the amendments. The change in accounting policy will also be reflected in the Corporation’s consolidated financial statements as at and for the year ending December 31, 2024.

PARTNERSHIP

On September 26, 2024, Precision formed a strategic Partnership with two Indigenous partners to provide well servicing operations in northeast British Columbia. Precision contributed $4 million in assets to the Partnership. Profit attributable to Non-Controlling Interests (NCI) was $0.1 million in 2024.

Precision holds a controlling interest in the Partnership and the portions of the net earnings and equity not attributable to Precision’s controlling interest are shown separately as NCI in the Consolidated Statements of Net Earnings and Consolidated Statements of Financial Position.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

Certain statements contained in this release, including statements that contain words such as “could”, “should”, “can”, “anticipate”, “estimate”, “intend”, “plan”, “expect”, “believe”, “will”, “may”, “continue”, “project”, “potential” and similar expressions and statements relating to matters that are not historical facts constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking information and statements”).

In particular, forward-looking information and statements include, but are not limited to, the following:

our strategic priorities for 2025;
our capital expenditures, free cash flow allocation and debt reduction plans for 2025 through to 2027;
anticipated activity levels, demand for our drilling rigs, day rates and daily operating margins in 2025;
the average number of term contracts in place for 2025;
customer adoption of Alpha^TM technologies and EverGreen^TM suite of environmental solutions;
timing and amount of synergies realized from acquired drilling and well servicing assets; and
potential commercial opportunities and rig contract renewals.

These forward-looking information and statements are based on certain assumptions and analysis made by Precision in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These include, among other things:

our ability to react to customer spending plans as a result of changes in oil and natural gas prices;
the status of current negotiations with our customers and vendors;
customer focus on safety performance;
existing term contracts are neither renewed nor terminated prematurely;
our ability to deliver rigs to customers on a timely basis;
the impact of an increase/decrease in capital spending; and
the general stability of the economic and political environments in the jurisdictions where we operate.

Undue reliance should not be placed on forward-looking information and statements. Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from our expectations. Such risks and uncertainties include, but are not limited to:

volatility in the price and demand for oil and natural gas;
fluctuations in the level of oil and natural gas exploration and development activities;
fluctuations in the demand for contract drilling, well servicing and ancillary oilfield services;
our customers’ inability to obtain adequate credit or financing to support their drilling and production activity;
changes in drilling and well servicing technology, which could reduce demand for certain rigs or put us at a competitive advantage;
shortages, delays and interruptions in the delivery of equipment supplies and other key inputs;
liquidity of the capital markets to fund customer drilling programs;
availability of cash flow, debt and equity sources to fund our capital and operating requirements, as needed;
the impact of weather and seasonal conditions on operations and facilities;
competitive operating risks inherent in contract drilling, well servicing and ancillary oilfield services;
ability to improve our rig technology to improve drilling efficiency;
general economic, market or business conditions;
the availability of qualified personnel and management;
a decline in our safety performance which could result in lower demand for our services;
changes in laws or regulations, including changes in environmental laws and regulations such as increased regulation of hydraulic fracturing or restrictions on the burning of fossil fuels and greenhouse gas emissions, which could have an adverse impact on the demand for oil and natural gas;
terrorism, social, civil and political unrest in the foreign jurisdictions where we operate;
fluctuations in foreign exchange, interest rates and tax rates; and
other unforeseen conditions which could impact the use of services supplied by Precision and Precision’s ability to respond to such conditions.

Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision’s Annual Information Form for the year ended December 31, 2023, which may be accessed on Precision’s SEDAR+ profile at www.sedarplus.ca or under Precision’s EDGAR profile at www.sec.gov. The forward-looking information and statements contained in this release are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Stated in thousands of Canadian dollars)	December 31, 2024			December 31, 2023⁽¹⁾			January 1, 2023⁽¹⁾
ASSETS
Current assets:
Cash	$	73,771		$	54,182		$	21,587
Accounts receivable		378,712			421,427			413,925
Inventory		43,300			35,272			35,158
Assets held for sale		5,501			—			—
Total current assets		501,284			510,881			470,670
Non-current assets:
Income tax recoverable		—			682			1,602
Deferred tax assets		6,559			73,662			455
Property, plant and equipment		2,356,173			2,338,088			2,303,338
Intangibles		12,997			17,310			19,575
Right-of-use assets		66,032			63,438			60,032
Finance lease receivables		4,806			5,003			—
Investments and other assets		8,464			9,971			20,451
Total non-current assets		2,455,031			2,508,154			2,405,453
Total assets	$	2,956,315		$	3,019,035		$	2,876,123

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	314,355		$	350,749		$	404,350
Income taxes payable		3,778			3,026			2,991
Current portion of lease obligations		20,559			17,386			12,698
Current portion of long-term debt		—			2,848			2,287
Total current liabilities		338,692			374,009			422,326

Non-current liabilities:
Share-based compensation		13,666			16,755			47,836
Provisions and other		7,472			7,140			7,538
Lease obligations		54,566			57,124			52,978
Long-term debt		812,469			914,830			1,085,970
Deferred tax liabilities		47,451			73,515			28,946
Total non-current liabilities		935,624			1,069,364			1,223,268
Equity:
Shareholders’ capital		2,301,729			2,365,129			2,299,533
Contributed surplus		77,557			75,086			72,555
Deficit		(900,834	)		(1,012,029	)		(1,301,273	)
Accumulated other comprehensive income		199,020			147,476			159,714
Total equity attributable to shareholders		1,677,472			1,575,662			1,230,529
Non-controlling interest		4,527			—			—
Total equity		1,681,999			1,575,662			1,230,529
Total liabilities and equity	$	2,956,315		$	3,019,035		$	2,876,123

^{(1) Comparative period figures were restated due to a change in accounting policy. See “CHANGE IN ACCOUNTING POLICY.”}

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (UNAUDITED)

	Three Months Ended December 31,						Year Ended December 31,
(Stated in thousands of Canadian dollars, except per share amounts)	2024			2023			2024			2023


Revenue	$	468,171		$	506,871		$	1,902,328		$	1,937,854
Expenses:
Operating		312,303			316,509			1,248,686			1,204,548
General and administrative		35,342			39,131			132,421			122,188
Earnings before income taxes, loss on investments and other assets, gain on acquisition, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, loss on asset decommissioning, gain on asset disposals, and depreciation and amortization		120,526			151,231			521,221			611,118
Depreciation and amortization		82,210			78,734			309,314			297,557
Gain on asset disposals		(1,913	)		(8,883	)		(16,148	)		(24,469	)
Loss on asset decommissioning		—			9,592			—			9,592
Foreign exchange		1,487			(773	)		2,259			(1,667	)
Finance charges		16,281			19,468			69,753			83,414
Gain on repurchase of unsecured senior notes		—			—			—			(137	)
Gain on acquisition		—			(25,761	)		—			(25,761	)
Loss on investments and other assets		1,814			735			1,484			6,810
Earnings before income taxes		20,647			78,119			154,559			265,779
Income taxes:
Current		2,811			486			7,470			4,494
Deferred		2,906			(69,089	)		35,759			(27,959	)
		5,717			(68,603	)		43,229			(23,465	)
Net earnings	$	14,930		$	146,722		$	111,330		$	289,244
Attributable to:
Shareholders of Precision Drilling Corporation	$	14,795		$	146,722		$	111,195		$	289,244
Non-controlling interests	$	135		$	—		$	135		$	—
Net earnings per share attributable to shareholders:
Basic	$	1.06		$	10.42		$	7.81		$	21.03
Diluted	$	1.06		$	9.81		$	7.81		$	19.53

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended December 31,						Year Ended December 31,
(Stated in thousands of Canadian dollars)	2024			2023			2024			2023
Net earnings	$	14,930		$	146,722		$	111,330		$	289,244
Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency		89,412			(36,755	)		119,821			(33,433	)
Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt		(49,744	)		22,679			(69,027	)		21,195
Tax related to net investment hedge of long-term debt		750			—			750			—
Comprehensive income	$	55,348		$	132,646		$	162,874		$	277,006
Attributable to:
Shareholders of Precision Drilling Corporation	$	55,213		$	132,646		$	162,739		$	277,006
Non-controlling interests	$	135		$	—		$	135		$	—

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three Months Ended December 31,						Year Ended December 31,
(Stated in thousands of Canadian dollars)	2024			2023			2024			2023
Cash provided by (used in):
Operations:
Net earnings	$	14,930		$	146,722		$	111,330		$	289,244
Adjustments for:
Long-term compensation plans		4,398			(2,541	)		18,888			6,659
Depreciation and amortization		82,210			78,734			309,314			297,557
Gain on asset disposals		(1,913	)		(8,883	)		(16,148	)		(24,469	)
Loss on asset decommissioning		—			9,592			—			9,592
Foreign exchange		1,477			(853	)		2,442			(866	)
Finance charges		16,281			19,468			69,753			83,414
Income taxes		5,717			(68,603	)		43,229			(23,465	)
Other		(392	)		(9	)		(272	)		(229	)
Loss on investments and other assets		1,814			735			1,484			6,810
Gain on acquisition		—			(25,761	)		—			(25,761	)
Gain on repurchase of unsecured senior notes		—			—			—			(137	)
Income taxes paid		(1,617	)		(708	)		(6,459	)		(3,103	)
Income taxes recovered		27			17			85			24
Interest paid		(2,806	)		(3,335	)		(72,241	)		(83,037	)
Interest received		409			614			1,967			1,176
Funds provided by operations		120,535			145,189			463,372			533,409
Changes in non-cash working capital balances		42,256			25,066			18,711			(32,838	)
Cash provided by operations		162,791			170,255			482,083			500,571

Investments:
Purchase of property, plant and equipment		(58,900	)		(78,582	)		(216,647	)		(224,960	)
Purchase of intangibles		—			(265	)		(51	)		(1,789	)
Proceeds on sale of property, plant and equipment		8,570			3,117			30,395			23,841
Proceeds from sale of investments and other assets		—			—			3,623			10,013
Business acquisitions		—			(646	)		—			(28,646	)
Purchase of investments and other assets		(718	)		(61	)		(725	)		(5,343	)
Receipt of finance lease payments		208			191			799			255
Changes in non-cash working capital balances		(11,114	)		18,619			(20,380	)		11,845
Cash used in investing activities		(61,954	)		(57,627	)		(202,986	)		(214,784	)

Financing:
Issuance of long-term debt		17,078			—			27,978			162,649
Repayments of long-term debt		(41,813	)		(86,699	)		(204,319	)		(375,237	)
Repurchase of share capital		(25,023	)		(17,004	)		(75,488	)		(29,955	)
Issuance of common shares from the exercise of options		—			—			686			—
Debt amendment fees		(46	)		—			(1,363	)		—
Lease payments		(3,266	)		(3,010	)		(13,271	)		(9,423	)
Funding from non-controlling interest		—			—			4,392			—
Cash used in financing activities		(53,070	)		(106,713	)		(261,385	)		(251,966	)
Effect of exchange rate changes on cash		1,700			(798	)		1,877			(1,226	)
Increase in cash		49,467			5,117			19,589			32,595
Cash, beginning of period		24,304			49,065			54,182			21,587
Cash, end of period	$	73,771		$	54,182		$	73,771		$	54,182

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

	Attributable to shareholders of the Corporation
(Stated in thousands of Canadian dollars)	Shareholders’ Capital			Contributed Surplus			Accumulated Other Comprehensive Income		Deficit			Total			Non- controlling interest		Total Equity
Balance at January 1, 2024	$	2,365,129		$	75,086		$	147,476	$	(1,012,029	)	$	1,575,662		$	—	$	1,575,662
Net earnings for the period		—			—			—		111,195			111,195			135		111,330
Other comprehensive income for the period		—			—			51,544		—			51,544			—		51,544
Share options exercised		978			(292	)		—		—			686			—		686
Settlement of Executive Performance and Restricted Share Units		21,846			(1,479	)		—		—			20,367			—		20,367
Share repurchases		(86,570	)		—			—		—			(86,570	)		—		(86,570	)
Redemption of non-management directors share units		346			(346	)		—		—			—			—		—
Share-based compensation expense		—			4,588			—		—			4,588			—		4,588
Funding from non-controlling interest		—			—			—		—			—			4,392		4,392
Balance at December 31, 2024	$	2,301,729		$	77,557		$	199,020	$	(900,834	)	$	1,677,472		$	4,527	$	1,681,999

	Attributable to shareholders of the Corporation
(Stated in thousands of Canadian dollars)	Shareholders’ Capital			Contributed Surplus		Accumulated Other Comprehensive Income			Deficit			Total			Non- controlling interest		Total Equity
Balance at January 1, 2023	$	2,299,533		$	72,555	$	159,714		$	(1,301,273	)	$	1,230,529		$	—	$	1,230,529
Net earnings for the period		—			—		—			289,244			289,244			—		289,244
Other comprehensive income for the period		—			—		(12,238	)		—			(12,238	)		—		(12,238	)
Acquisition share consideration		75,588			—		—			—			75,588			—		75,588
Settlement of Executive Performance and Restricted Share Units		19,206			—		—			—			19,206			—		19,206
Share repurchases		(29,955	)		—		—			—			(29,955	)		—		(29,955	)
Redemption of non-management directors share units		757			—		—			—			757			—		757
Share-based compensation expense		—			2,531		—			—			2,531			—		2,531
Balance at December 31, 2023	$	2,365,129		$	75,086	$	147,476		$	(1,012,029	)	$	1,575,662		$	—	$	1,575,662

2024 FOURTH QUARTER AND YEAR-END RESULTS CONFERENCE CALL AND WEBCAST

Precision Drilling Corporation has scheduled a conference call and webcast to begin promptly at 11:00 a.m. MT (1:00 p.m. ET) on Thursday, February 13, 2025.

To participate in the conference call please register at the URL link below. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions.

https://register.vevent.com/register/BI9168b4c0516f4409ab4f297340994ebc

The call will also be webcast and can be accessed through the link below. A replay of the webcast call will be available on Precision’s website for 12 months.

https://edge.media-server.com/mmc/p/8hij84aa

About Precision

Precision is a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha™ that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Our drilling services are enhanced by our EverGreen™ suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel.

Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange under the trading symbol “PDS”.

Additional Information

For further information, please contact:

Lavonne Zdunich, CPA, CA
Vice President, Investor Relations
403.716.4500

800, 525 – 8th Avenue S.W.
Calgary, Alberta, Canada T2P 1G1
Website: www.precisiondrilling.com

The MIL Network –

February 13, 2025

MIL-OSI Global: Inflation is heating up again, putting pressure on Trump to cool it on tariffs

Source: The Conversation – USA – By Jason Reed, Associate Teaching Professor of Finance, University of Notre Dame

Inflation is building again; but the housing industry may find it harder to do so as a result of Trump tariffs. Win McNamee/Getty Images

Inflation figures released on Feb. 12, 2025, will come as a disappointment to Americans who hoped President Donald Trump would be true to his word on bringing down prices “on Day One.” It will also put pressure on the new administration to be wary of policies that may heat up inflation – and that includes tariffs.

The consumer price index, which measures the change in prices paid by consumers for a representative basket of goods and services, rose unexpectedly from December to January by 0.5%. It means consumers are paying around 3% more on item prices than they were a year ago.

Economists had been expecting the pace of inflation to slow in January.

The news isn’t good for anyone concerned. It means inflation remains above the Federal Reserve’s long-run target of 2% – making it harder for the central bank to cut rates at its next meeting on March 19. At its last meeting, the rate-setting Federal Open Market Committee kept its benchmark federal funds rate unchanged at a range of 4.25-4.50%.

Following the release of the latest inflation data, markets have a stronger conviction that the Fed will again hold rates steady when it meets in March.

It also means more pain for consumers. Higher interest rates set by the Fed play a large role in determining rates for mortgages, credit cards and auto loans. If January’s rate of inflation were to continue throughout 2025, consumers would see a painful 6.2% annualized inflation rate.

And although it would be churlish to link the latest jump in inflation to an administration just weeks old, it does put into focus the current slate of Trump economic policies. Economists have long warned that imposing tariffs on imports and cutting taxes does little to curb inflation – rather, they may contribute to faster price increases.

Already, China has been hit by a 10% tariff on all products. Trump has also proposed a 25% tariff on all steel and aluminum imports, and he mulled imposing new tariffs on Canada and Mexico – two of the United States’ largest trading partners.

I believe that if these wide-ranging tariffs come into effect, the Federal Reserve will have no choice but to keep rates elevated for the remainder of 2025.

Revving up for higher car costs

One of the largest drivers of inflation in January was rent increases, which accounted for nearly 30% of all items increase. Rents jumped 4.6% from a year earlier.

If Trump’s tariffs on Canadian imports, like lumber, take effect, Americans can expect continued price increases in the homebuilding sector. Supply and demand imbalances remain a key driver for higher prices, so fewer houses being built due to higher materials cost will likely lead to higher rents.

Consumers saw better news on new vehicle prices, which remained flat over the month and showed slight declines from a year ago.

This is even as demand for new cars increased 2.5% over 2024. In January 2025, the number of new vehicles sold topped the same month a year earlier for the fifth month in a row.

But as with homebuilding, any tariffs on the import of car parts or materials will impact the auto industry. Carmakers may have breathed an immediate breath of relief when Trump delayed new tariffs on Canada and Mexico. But if deals aren’t reached by the March 1 deadline, industry analysts expect immediate impacts on top sellers.

And any higher cost of new cars will have a knock-on effect on used cars, which saw prices jump 2.2% in January – it’s largest increase since May 2023.

Increased prices are no yoke! (groan)

Of course, not all inflationary pressures are in the purview of government.

The transportation sector, which includes insurance and parking fees, increased by 8% over the year. Insurance prices soared almost 12%, on the back of last year’s 20.6% increase in prices, while parking fees increased by almost 5% as a result of more expensive repairs and more dangerous driving behaviors.

Meanwhile, with bird flu continuing to spread, egg prices rose a shocking 15.2% in January, and are 53% more expensive than at this time last year.

All in all, voters who cited inflation as the main reason they were backing Trump may be feeling a little uneasy – the administration is only a few weeks old, but for one reason or other, Americans are experiencing ever higher prices with little relief in sight.

Jason Reed does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Inflation is heating up again, putting pressure on Trump to cool it on tariffs – https://theconversation.com/inflation-is-heating-up-again-putting-pressure-on-trump-to-cool-it-on-tariffs-249815

MIL OSI – Global Reports –

February 13, 2025
MIL-OSI Security: Whitehorse — Repeat offender arrested and charged with numerous property related offences
Source: Royal Canadian Mounted Police

Whitehorse RCMP have charged an individual with multiple charges, including break and enter of three downtown Whitehorse businesses.

On February 3, 2025 Whitehorse RCMP located Christopher Schafer in possession of a stolen vehicle. Mr. Schafer was arrested and charged with possession of stolen property over $5000 and fail to comply with a probation order. He was held in custody for court February 3, 2025, and was released from custody.

Between February 4 and February 6, 2025, Whitehorse RCMP responded to four separate calls for service related to incidents of break and enter, mischief under $5000, and uttering threats. Evidence gathered from the scenes led police in identifying a suspect.

On February 8, 2025, RCMP arrested Christopher Schafer. Mr. Schafer appeared in court on February 12, 2025 and has been remanded until February 26, 2025. He has been charged with the following offences:
- Possession of property obtained by crime over $5000
- Possession of break-in instruments with intent to be used (3 counts)
- Possession of weapon for a dangerous purpose
- Uttering threats to cause bodily harm (2 counts)
- Fail to comply with a probation order (5 counts)
- Disguise with intent to commit an indictable offence (3 counts)
- Break and enter to business (3 counts)
- Mischief under $5000
If you were a witness to a crime or have information about any crimes, please contact the RCMP at 867-667-5555.

MIL Security OSI –
February 13, 2025
MIL-OSI: Partners Value Investments Inc. Announces Normal Course Issuer Bids

Source: GlobeNewswire (MIL-OSI)

TORONTO, Feb. 12, 2025 (GLOBE NEWSWIRE) — Partners Value Investments Inc. (the “Corporation”) (TSXV: PVF.WT. PVF.PR.V), a subsidiary of Partners Value Investments L.P. announced today that it has received approval from the TSX Venture Exchange (the “Exchange”) for normal course issuer bids (the “Bids”) to purchase up to 1,396,407 of its share purchase warrants (the “Warrants”), representing approximately 5% of its currently outstanding Warrants; and to purchase up to 3,533,558 of its Class A preferred shares, series 1 (the “Preferred Shares”), representing approximately 5% of its currently outstanding Preferred Shares. The Bids will be effective from February 14, 2025 to February 13, 2026, or such earlier date that the Corporation completes its purchases.

Purchases by the Corporation pursuant to the Bids will be made by its designated broker, RBC Capital Markets, through the facilities of the Exchange, other designated exchanges and alternative trading systems in Canada. The price which the Corporation will pay for any Warrants or Preferred Shares purchased will be the market price of the Warrants and Preferred Shares at the time of acquisition. Any Warrants and Preferred Shares acquired through the Bids will be cancelled. As of January 31, 2025, there were 27,928,149 Warrants and 70,671,137 Preferred Shares outstanding.

The Corporation believes that, from time to time, the market price of the Warrants and Preferred Shares may not adequately reflect their value. In such circumstances, the Corporation believes that its outstanding Warrants and Preferred Shares may represent an appropriate and desirable use of its available funds.

In connection with the Bids, the Corporation will enter into an automatic purchase plan with its designated broker on February 13, 2025. The automatic purchase plan will allow for the purchase of Warrants and Preferred Shares when the Corporation would not ordinarily be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Outside of these periods, Warrants and Preferred Shares will be repurchased in accordance with management’s discretion and in compliance with applicable law.

For further information, contact Investor Relations at ir@pvii.ca or 416‐643-7621.

Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. Expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify forward-looking information and forward-looking statements.

Although the Corporation believes that its anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond its control, which may cause the actual results, performance or achievements of the Corporation to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements and information include, but are not limited to: the financial performance of Brookfield Corporation and Brookfield Asset Management Ltd., the impact or unanticipated impact of general economic, political and market factors; the behavior of financial markets, including fluctuations in interest and foreign exchanges rates; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation; changes in tax laws, catastrophic events, such as earthquakes, hurricanes, or pandemics/epidemics; the possible impact of international conflicts and other developments including terrorist acts; and other risks and factors detailed from time to time in the Partnership’s documents filed with the securities regulators in Canada.

The Corporation cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on the Corporation’s forward-looking statements and information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, the Corporation undertakes no obligation to publicly update or revise any forward-looking statements and information, whether written or oral, that may be as a result of new information, future events or otherwise.

The MIL Network –

February 13, 2025
MIL-OSI Security: Torrington Man Pleads Guilty to Child Exploitation Offense

Source: Office of United States Attorneys

Marc H. Silverman, Acting U.S. Attorney of the District of Connecticut, announced that CHRISTOPHER JESUS CONSTANZO, 22, of Torrington, pleaded guilty today in Hartford federal court to an offense stemming from his sexual exploitation of three different minors, including kidnapping and sexual assault of a 16-year-old girl, enticement and sexual assault of another 16-year-old girl, and production of child pornography involving a 17-year-old girl.

According to court documents and statements made in court, on December 2, 2021, at approximately 7:27 a.m., Constanzo and a 16-year-old female arrived by car at the U.S. Port of Entry at Highgate Springs, Vermont. Just prior to their arrival, officials at the St-Armand/Philipsburg Border Crossing in Canada had refused Constanzo and the minor victim entry into Canada. After U.S. Customs and Border Protection (“CBP”) officers separated Constanzo from the minor victim, the victim reported that she met Constanzo the night before at Stillwater Pond State Park in Torrington. Constanzo then sexually assaulted the minor victim, forced her into the trunk of the minor victim’s car, restrained her with a shoelace, and began driving. At some point during the night, Constanzo removed the minor victim from the trunk and sexually assaulted her again. As they neared the Canadian border, Constanzo had the minor victim sit in the front passenger seat of the car. Constanzo instructed her to “act normal” and “go along with the story.” Constanzo then told Canadian Border Services Agency officials that the minor victim was his sister and they intended to go into Canada for four days to visit friends. However, due to their lack of COVID tests, Constanzo and the minor victim were denied entry into Canada. Costanzo was arrested by CBP on December 2, 2021.

In July 2021, Costanzo used SnapChat to coerce a 16-year-old female to go to an abandoned warehouse in Torrington to record herself having sex with Constanzo, and, posing as two fictitious individuals on SnapChat, he threatened to kill the minor victim and kill her boyfriend if she did not comply. At the warehouse, Constanzo sexually assaulted the minor victim at knifepoint.

Also in July 2021, Costanzo used his iPhone to record sexually explicit Facetime videos of a 17-year-old female.

Costanzo pleaded guilty to production of child pornography and, as part of his plea agreement, admitted his conduct against all three victims. Costanzo is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on May 7, at which time he faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years.

Costanzo has been detained since his arrest.

State charges against Costanzo are pending.

This matter has been investigated by Homeland Security Investigations (HSI), U.S. Customs and Border Protection, the Vermont State Police, and the Torrington Police Department. The case is being prosecuted by Assistant U.S. Attorneys Nancy V. Gifford and Neeraj N. Patel.

Acting U.S. Attorney Silverman thanked the U.S. Attorney’s Office for the District of Vermont and the State’s Attorney for the Litchfield Judicial District for their assistance in the investigation and prosecution of this matter.

This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

To report cases of child exploitation, please visit www.cybertipline.com.

MIL Security OSI –

February 13, 2025
MIL-OSI: Petrus Resources Announces 2025 Budget Guidance
Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Feb. 12, 2025 (GLOBE NEWSWIRE) — Petrus Resources Ltd. (“Petrus” or the “Company“) (TSX: PRQ) is pleased to announce its 2025 capital guidance.

2025 BUDGET GUIDANCE

In 2025, Petrus will build on its strategy of disciplined capital investment by targeting projects designed to maintain production, increase liquids weighting, enhance capital efficiency and generate free funds flow. The Board of Directors has approved a $40 million to $50 million capital program, with approximately 70% allocated toward high-impact development drilling in its core Ferrier and North Ferrier areas. The remaining capital will be invested in strategic infrastructure, including a 12-kilometer expansion of the North Ferrier pipeline, and land acquisitions. The budget is based on price assumptions of USD$68.50/bbl WTI for oil, CAD$2.04/GJ AECO for natural gas and a USD/CAD exchange rate of $0.70. Through the execution of this capital program, Petrus expects to:
- Achieve 2025 annual average daily production of 9,000 to 10,000 boe¹ per day – 65% gas and 35% total liquids
- Generate $45 million to $55 million in annual funds flow² for 2025
- Pay a monthly dividend of $0.01/share – annually this represents approximately 9% of the current share price
- Maintain net debt flat² at $60 million
Given the inherent volatility of commodity prices, the Company recognizes it is prudent to remain disciplined and flexible from an operational and financial perspective. For 2025, the Company has hedged approximately 54% of its forecasted production at an average price of $2.78/GJ for natural gas and CAD $94.37/bbl for oil. Petrus will continue to monitor Canadian oil and natural gas prices and will evaluate the capital program on an ongoing basis.

The Company remains well-positioned to navigate changing market dynamics while delivering consistent value to shareholders. By leveraging operational efficiencies and maintaining financial discipline, Petrus continues to strengthen its financial position and reinforce long-term sustainability. As market conditions evolve, the Company is prepared to adapt and respond quickly to capture opportunities and maximize returns.

ABOUT PETRUS
Petrus is a public Canadian oil and gas company focused on property exploitation, strategic acquisitions and risk-managed exploration in Alberta.

For further information, please contact:

Ken Gray
President and Chief Executive Officer
T: 403-930-0889
E: kgray@petrusresources.com

_____________________________

¹ Disclosure of production on a per boe basis consists of the constituent product types and their respective quantities. Refer to “BOE Presentation” and “Production and Product Type Information” for further details.

² Non-GAAP financial measure. During the year ended December 31, 2023, funds flow was $78.0 million. As at September 30, 2024, net debt was $60.4 million. Refer to “Non-GAAP and Other Financial Measures”.

READER ADVISORIES

Non-GAAP and Other Financial Measures

This press release refers to the terms “funds flow” and “net debt”. These non-GAAP and other financial measures are not recognized measures under GAAP (IFRS) and do not have a standardized meaning prescribed by GAAP (IFRS). Accordingly, the Company’s use of these terms may not be comparable to similarly defined measures presented by other companies. These non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS as indicators of our performance. Management uses these non-GAAP and other financial measures for the reasons set forth below.

Funds Flow

Funds flow is a common non-GAAP financial measure used in the oil and natural gas industry that evaluates the Company’s profitability at the corporate level. Management believes that funds flow provides information to assist a reader in understanding the Company’s profitability relative to current commodity prices. The most directly comparable financial measure that is disclosed in the Company’s primary financial statements is oil and natural gas revenue, which was $125.6 million for the year ended December 31, 2023. For additional information regarding funds flow (including a reconciliation of funds flow to oil and natural gas revenue), see the disclosure under “Non-GAAP and Other Financial Measures – Corporate Netback and Funds Flow” in the Company’s Management’s Discussion & Analysis for the year ended December 31, 2023 which is available on SEDAR+ at www.sedarplus.ca, which disclosure is incorporated by reference herein.

Net Debt
Net debt is a non-GAAP financial measure and is calculated as the sum of long-term debt and working capital (current assets and current liabilities), excluding the current financial derivative contracts, the current portion of the lease obligation and the current portion of the decommissioning obligation. Petrus uses net debt as a key indicator of its leverage and strength of its balance sheet. As at September 30, 2024, long-term debt was $25 million. For additional information regarding net debt (including a reconciliation of net debt to long-term debt), see the disclosure under “Non-GAAP and Other Financial Measures – Net Debt” in the Company’s Management’s Discussion & Analysis for the three- and nine-month periods ended September 30, 2024 which is available on SEDAR+ at www.sedarplus.ca, which disclosure is incorporated by reference herein.

Forward-Looking Statements and FOFI

Certain information regarding Petrus set forth in this press release contains forward-looking statements within the meaning of applicable securities law, that involve substantial known and unknown risks and uncertainties. Such statements represent Petrus’ internal projections, estimates, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements are only predictions and actual events or results may differ materially. Although Petrus believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Petrus’ actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Petrus. In particular, forward-looking statements included in this press release include, but are not limited to, statements with respect to: our intention in 2025 to build on our strategy of disciplined capital investment by targeting projects designed to maintain production, increase liquids weighting, enhance capital efficiency and generate free funds flow; the range of our capital program in 2025, with approximately 70% allocated toward high-impact development drilling in our core Ferrier and North Ferrier areas, and that the remaining capital will be invested in strategic infrastructure, including a 12-kilometer expansion of the North Ferrier pipeline, and land acquisitions; our belief that through the execution of our 2025 capital program we will achieve 2025 annual average daily production of 9,000 to 10,000 boe per day (65% gas and 35% total liquids), generate $45 million to $55 million in annual funds flow, pay a monthly dividend of $0.01/share, and maintain net debt flat at $60 million; our intention to remain disciplined and flexible from an operational and financial perspective; that for 2025 we have hedged approximately 54% of ours forecasted production, and the details thereof; our intention to continue to monitor Canadian oil and natural gas prices and evaluate our capital program on an ongoing basis; our belief that we are well-positioned to navigate changing market dynamics while delivering consistent value to shareholders; our belief that by leveraging operational efficiencies and maintaining financial discipline, we continues to strengthen our financial position and reinforce long-term sustainability; and that we are prepared to adapt and respond quickly to capture opportunities and maximize returns. These forward-looking statements are subject to numerous risks and uncertainties, most of which are beyond the Company’s control, including: the risk that (i) negotiations between the U.S. and Canadian governments are not successful and one or both of such governments implements announced tariffs, increases the rate or scope of announced tariffs, or imposes new tariffs on the import of goods from one country to the other, including on oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the tariffs imposed by the U.S. on other countries and responses thereto could have a material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Company; the risk that we do not generate sufficient funds flow and free funds flow to maintain our dividend at current levels and/or to maintain net debt flat; the impact of general economic conditions; volatility in market prices for crude oil, NGL and natural gas; industry conditions; currency fluctuation; changes in interest rates and inflation rates; imprecision of reserve estimates; liabilities inherent in crude oil and natural gas operations; environmental risks; incorrect assessments of the value of acquisitions and exploration and development programs; competition; the lack of availability of qualified personnel or management; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; hazards such as fire, explosion, blowouts, cratering, and spills, or extreme weather events, such as wild fires, floods, drought and extreme cold or warm temperatures, each of which could result in substantial damage to wells, production facilities, other property and the environment or in personal injury and/or increase our costs, decrease our production, or otherwise impede our ability to operate our business; stock market volatility; ability to access sufficient capital from internal and external sources; that the amount of dividends that we pay may be reduced or suspended entirely; that we reduce or suspend the repurchase of shares under our NCIB; and the other risks and uncertainties described in our Annual Information Form. With respect to forward-looking statements contained in this press release, Petrus has made assumptions regarding: that the tariffs that have been publicly announced by the U.S. and Canadian governments (but which are not yet in effect) do not come into effect, but that if such tariffs do come into effect, the potential impact of such tariffs, and that other than the tariffs that have been announced, neither the U.S. nor Canada (i) increases the rate or scope of such tariffs, or imposes new tariffs, on the import of goods from one country to the other, including on oil and natural gas, and/or (ii) imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas; the amount of dividends that we will pay; the number of shares that we will repurchase under our NCIB; future commodity prices (including as disclosed herein) and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates (including as disclosed herein); the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment and services; effects of regulation by governmental agencies; the effects of inflation on our profitability; future interest rates; and future operating costs. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide investors with a more complete perspective on Petrus’ future operations and such information may not be appropriate for other purposes. Petrus’ actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. Readers are cautioned that the foregoing lists of factors are not exhaustive. This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about Petrus’ prospective results of operations including, without limitation, our forecasts for our 2025 capital spending program, 2025 annual average daily production rate, 2025 annual funds flow, 2025 monthly dividend, and 2025 net debt, which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI. Petrus’ actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI, or if any of them do so, what benefits Petrus will derive therefrom. Petrus has included the FOFI in order to provide readers with a more complete perspective on Petrus’ future operations and such information may not be appropriate for other purposes.

These forward-looking statements and FOFI are made as of the date of this press release and the Company disclaims any intent or obligation to update any forward-looking statements and FOFI, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

BOE Presentation

The oil and natural gas industry commonly expresses production volumes and reserves on a barrel of oil equivalent (“boe”) basis whereby natural gas volumes are converted at the ratio of six thousand cubic feet to one barrel of oil. The intention is to sum oil and natural gas measurement units into one basis for simplified measurement of results and comparisons with other industry participants. Petrus uses the 6:1 boe measure which is the approximate energy equivalence of the two commodities at the burner tip. Boe’s do not represent an economic value equivalence at the wellhead and therefore may be a misleading measure if used in isolation.

Production and Product Type Information

The Company’s forecast 2025 annual average daily production rate disclosed in this press release (9,000 to 10,000 boe per day) consists of the following product types, as defined in National Instrument 51-101 and using the conversion ratio described above, where applicable: 15% light oil and condensate, 20% natural gas liquids and 65% conventional natural gas.

The MIL Network –
February 13, 2025
MIL-OSI Security: Carry the Kettle Nakoda Nation — Update on Suspicious Deaths on Carry the Kettle Nakoda Nation

Source: Royal Canadian Mounted Police

Identities of victims released

The Saskatchewan Coroner’s Service, in conjunction with the Saskatchewan RCMP and in collaboration with the families of the deceased victims, are releasing the names of the people who died as a result of the homicides on Carry the Kettle Nakoda Nation on February 4, 2025. Their identities are being released to help further the investigation.

We share our condolences with the families and community members impacted by this tragedy.

The Saskatchewan RCMP Major Crimes Family Liaison team and Victim Services continue to communicate with the victim’s families.

With this in mind and to assist ongoing reporting, families of the deceased have provided photographs of their loved ones which they have permitted us to share with news partners. They are the highest quality photographs we have available. The families have asked for privacy during this difficult time.

The deceased victims are identified as:

34-year-old Tracey Hotomani of Carry the Kettle Nakoda Nation
44-year-old Sheldon Quewezance of Zagime Anishinabek
47-year-old Shauna Fay of Indian Head
51-year-old Terry Jack of Carry the Kettle Nakoda Nation

Investigation has determined the homicide victims were injured by firearm. We are investigating the deaths as homicides. Initial investigation suggests the residence may have been targeted.

The investigation continues, which includes investigators speaking with individuals who may have relevant information to share, as well as evidence analysis. Neighbourhood canvasses have also occurred on Carry the Kettle Nakoda Nation.

At this time no arrests have been made in relation to the deaths of the four victims.

“We are actively investigating this tragedy to piece together the details of what happened – this takes time. We must be mindful that releasing more specific details could impact the overall investigation,” says Inspector Ashley St. Germaine, Senior Investigative Officer of Saskatchewan RCMP Major Crimes. “I reiterate: if you have information to share about this investigation, please speak directly with the police so it can be examined thoroughly. Rumours can spread quickly. Please remember the loss the victim’s loved ones have experienced. Misinformation can impact an investigation by rerouting investigators in false directions. Investigations must follow evidence and our investigators are trained to do just that.”

Report all tips to the RCMP by calling 911 in an emergency and 310-RCMP in non-emergencies. Information can be submitted anonymously by contacting Saskatchewan Crime Stoppers at 1-800-222-TIPS (8477) or www.saskcrimestoppers.com.

MIL Security OSI –

February 13, 2025

MIL-OSI: Clairvest Reports Fiscal 2025 Third Quarter Results

Source: GlobeNewswire (MIL-OSI)

TORONTO, Feb. 12, 2025 (GLOBE NEWSWIRE) — Clairvest Group Inc. (TSX: CVG) today reported results for the fiscal 2025 third quarter and nine months ended December 31, 2024. (All figures are in Canadian dollars unless otherwise stated)

Highlights

December 31, 2024 book value was $1,234.3 million or $86.78 per share compared with $1,196.9 million or $84.06 per share as at September 30, 2024
Net income for the quarter ended December 31, 2024 was $38.5 million or $2.70 per share
Net income for the nine months ended December 31, 2024 was $101.3 million of $7.00 per share
Clairvest and Clairvest Equity Partners VII (“CEP VII”) invested in Redstone Food Group
Clairvest and Clairvest Equity Partners III (“CEP III”) sold its investment in Chilean Gaming Holdings

Clairvest’s book value was $1,234.3 million or $86.78 per share as at December 31, 2024, compared with $1,196.9 million or $84.06 per share as at September 30, 2024. For the quarter ended December 31, 2024, Clairvest recorded net income of $38.5 million, or $2.70 per share, which was driven by the realization of its investment in Chilean Gaming Holdings, a net increase in the valuation of Clairvest’s private equity investment portfolio and net foreign exchange gains due to material weakness in the Canadian dollar as the Company has various assets in foreign currencies which are not hedged against the Canadian dollar.

For the nine months ended December 31, 2024, the net income was $101.3 million, or $7.00 per share.

In November 2024, and as previously announced, Clairvest together with CEP VII made a $42.1 million minority preferred equity investment in Redstone Food Group, a leading commercial bakery of bread and bakery products, focused on the in-store bakery segment. Clairvest’s portion of the investment was $10.5 million. Redstone Food Group is the first investment of CEP VII’s US$1.2 billion investment program, which commenced on April 1, 2024.

In November 2024, Chilean Gaming Holdings, an acquisition entity for Clairvest, CEP III and other co-investors, sold its ownership interests in various casino properties in Chile. Proceeds on the sale totalled $41 million for Clairvest, compared with a cost of $28 million. There may be additional cash proceeds on this realization which are subject to certain conditions and are not expected to be material. Clairvest made its initial investment in Chilean Gaming Holdings in January 2008, and its realization represents the sale of the last investment of CEP III.

“This past quarter was a productive one for Clairvest, highlighted by a new investment and a portfolio realization. We are pleased to partner with Rob Wheeler, an entrepreneur who shares our vision for growth, and we look forward to supporting Redstone Food Group in its next chapter. Additionally, we completed the sale of a legacy portfolio company, enabling our team to focus on value creation within our existing investments and on the strategic deployment of capital in CEP VII. This sale also concluded the CEP III investment program which generated a net return of 2.5x and a 17% IRR for our third-party investors, making this another top quartile fund for Clairvest,” said Ken Rotman, CEO of Clairvest.

Summary of Financial Results – Unaudited

Financial Results	Quarter ended			Nine months ended
	December 31			December 31
	2024	2023		2024	2023
($000’s, except per share amounts)	$	$		$	$
Net investment gain (loss)	22,304	(19,116	)	3,810	(41,409	)
Net carried interest from Clairvest Equity Partners III and IV	2,930	892		4,461	2,695
Distributions, interest income, dividends and fees	27,250	14,319		137,678	40,439
Total expenses, excluding income taxes	6,154	2,168		28,194	38,232
Net income (loss) and comprehensive income (loss)	38,450	(4,950	)	101,321	(29,456	)
Basic and fully diluted net income (loss) per share	2.70	(0.34	)	7.00	(1.97	)

Financial Position	December 31	March 31,
Financial Position	2024	2024
($000’s, except share information and per share amounts)	$	$
Total assets	1,408,658	1,342,139
Total cash, cash equivalents, temporary investments and restricted cash	305,444	330,193
Carried interest from Clairvest Equity Partners III and IV	48,809	52,188
Corporate investments⁽¹⁾	927,853	870,660
Total liabilities	174,309	165,842
Management participation from Clairvest Equity Partners III and IV	37,764	41,506
Book value⁽²⁾	1,234,349	1,176,297
Common shares outstanding	14,223,531	14,673,701
Book value per share⁽²⁾	86.78	80.16

⁽¹⁾ Includes carried interest of $133,597 (March 31: $143,617) and management participation of $98,788 (March 31: $103,740) from Clairvest Equity Partners V and VI, and $168,351 (March 31: $90,973) in cash, cash equivalents and temporary investments held by Clairvest’s acquisition entities.
⁽²⁾ Book value is a Non-IFRS measure calculated as the value of total assets less the value of total liabilities.

Clairvest’s third quarter fiscal 2025 financial statements and MD&A are available on the SEDAR website at www.sedar.com and the Clairvest website at www.clairvest.com.

About Clairvest
Clairvest’s mission is to partner with entrepreneurs to help them build strategically significant businesses. Founded in 1987 by a group of successful Canadian entrepreneurs, Clairvest is a top performing private equity management firm with over CAD $4.6 billion of capital under management. Clairvest invests its own capital and that of third parties through the Clairvest Equity Partners limited partnerships in owner-led businesses. Under the current management team, Clairvest has initiated investments in 67 different platform companies and generated top quartile performance over an extended period.

Contact Information
Stephanie Lo
Director of Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753
stephaniel@clairvest.com

Forward-looking Statements
This news release contains forward-looking statements with respect to Clairvest Group Inc., its subsidiaries, its CEP limited partnerships and their investments. These statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Clairvest, its subsidiaries, its CEP limited partnerships and their investments to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general and economic business conditions and regulatory risks. Clairvest is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

www.clairvest.com

The MIL Network –

February 13, 2025

MIL-OSI Global: The Paris summit marks a tipping point on AI’s safety and sustainability

Source: The Conversation – Canada – By Robert Diab, Professor, Faculty of Law, Thompson Rivers University

United States Vice President JD Vance made headlines this week by refusing to sign a declaration at a global summit in Paris on artificial intelligence.

In his first appearance on the world stage, Vance made clear that the U.S. wouldn’t be playing ball. The Donald Trump administration believes that “excessive regulation of the AI sector could kill a transformative industry just as it’s taking off,” he said. “We’ll make every effort to encourage pro-growth AI policies.”

His remarks confirmed a widespread fear that Trump’s return to the White House will signal a sharp turn in tech policy. American tech companies and their billionaire owners will now be shielded from effective oversight.

But upon a closer look, events this week point to signs that just the opposite may be unfolding. A host of nations took notable steps towards address growing safety and environmental concerns about AI, indicating that a regulatory tipping point has been reached.

Prime Minister Justin Trudeau delivered the keynote address at the AI Action Summit in Paris, France.

Wide consensus

The two-day global summit in Paris, chaired by France and India, led to broad consensus. Some 60 countries signed on to a Statement on Inclusive and Sustainable AI. This included Canada, the European Commission, India and China.

Both the U.S. and the United Kingdom declined to sign on. But the prevailing winds are against them.

The meeting in Paris was the third global summit on AI, following meet-ups at Bletchley Park in the U.K. in 2023 and in Seoul, South Korea, in 2024. Each of them ended with similar declarations widely endorsed.

The Paris communiqué calls for an “inclusive approach” to AI, seeking to “narrow inequalities” in AI capabilities among countries. It encourages “avoiding market concentration” and affirms the need for openness and transparency in building and sharing technology and expertise.

The document is not binding. It does little more than tout principles, or affirm a collective sentiment among the parties. One of these — perhaps the most important — is to keep talking, meeting and working together on the common concerns that AI raises.

Environmental challenges

Meanwhile, a smaller group of countries at the Paris summit, along with 37 tech companies, agreed to form a Coalition for Sustainable AI — setting out a series of goals and deliverables.

While nothing is binding on the parties, the goals are notably specific. They include coming up with standards for measuring AI’s environmental impact and more effective ways for companies to report on the impact. Parties also aim to “optimize algorithms to reduce computational complexity and minimize data usage.”

Even if most of this turns out to be merely aspirational, it’s important that the coalition offers a platform for collaboration on these initiatives. At the very least, it signals a likelihood that sustainability will be at the forefront of debate about AI moving forward.

Read more:
AI is bad for the environment, and the problem is bigger than energy consumption

Signing the first international treaty on AI

A further notable event at the summit was that Canada signed the Council of Europe’s Framework Convention on Artificial Intelligence and Human Rights, Democracy and the Rule of Law. In recent months, 12 other countries had signed, including the U.S. (under former president Joe Biden), the U.K., Israel and the European Union.

The convention commits parties to pass domestic laws on AI that deal with privacy, bias and discrimination, safety, transparency and environmental sustainability.

The treaty has been criticized for containing no more than “broad affirmations” and imposing few clear obligations. But it does show that countries are committed to passing law to ensure that AI development unfolds within boundaries — and they’re eager to see more countries do the same.

If Canada were to ratify the treaty, Parliament would likely revive Bill C-27, which contained the AI and Data Act.

Read more:
The federal government’s proposed AI legislation misses the mark on protecting Canadians

The act aimed to do much of what Canada agrees to do under the convention: impose greater oversight of the development and use of AI. This includes transparency and disclosure requirements on AI companies, and stiff penalties for failure to comply.

What does this really mean?

While the U.S. signed the convention on AI and human rights, democracy and rule of law in the fall of 2024, it likely won’t be implemented by a Republican Congress. The same might happen in Canada under a Conservative government led by Pierre Poilievre. He could also decide not to fulfil commitments made under other agreements about AI.

And if Poilievre comes to power by the time Canada hosts the next G7 meeting in June, he might decline to honour the Trudeau government’s commitment to make AI regulation a central focus of the meeting.

The Trump administration may have ushered in a period of more lax tech regulation in the U.S., and Silicon Valley is indeed a key player in tech — especially AI. But it’s a wide world, with many other important players in this space, including China, Europe and Canada.

The events in Paris have revealed a strong interest among nations around the globe to regulate AI, and specifically to foster ideas about inclusion and sustainability. If the Paris summit was any indication, the hope of sheltering AI from effective regulation won’t last long.

Robert Diab does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. The Paris summit marks a tipping point on AI’s safety and sustainability – https://theconversation.com/the-paris-summit-marks-a-tipping-point-on-ais-safety-and-sustainability-249706

MIL OSI – Global Reports –

February 13, 2025
MIL-OSI Security: Beauval — Beauval RCMP asking public to report sightings of Christopher Blyan

Source: Royal Canadian Mounted Police

Beauval RCMP are asking the public to report sightings and information on the whereabouts of 46-year old Christopher Blyan.

Christopher Blyan is wanted for charges including the possession of cocaine, failure to attend court, and failure to comply with release conditions.

Christopher Blyan is described as 5’10” tall and 190 pounds with hazel colored eyes and brown hair.

He is known to travel in the Beauval and Meadow Lake areas.

Beauval RCMP continue to investigate.

Report all sightings and information about the whereabouts of Christopher Blyan to your local police at 310-RCMP. Information can also be submitted anonymously by contacting Saskatchewan Crime Stoppers at 1-800-222-TIPS (8477) or www.saskcrimestoppers.com.

MIL Security OSI –

February 13, 2025
MIL-OSI: QXO Proposes Full Slate of Independent Directors for Election at Beacon Roofing Supply’s 2025 Annual Meeting

Source: GlobeNewswire (MIL-OSI)

GREENWICH, Conn., Feb. 12, 2025 (GLOBE NEWSWIRE) — QXO, Inc. (NYSE: QXO) announced today that it has informed Beacon Roofing Supply, Inc. (Nasdaq: BECN) that it will propose 10 independent director nominees at Beacon’s 2025 Annual Meeting of Shareholders to replace Beacon’s Board of Directors.

The slate of independent nominees includes current and former senior executives and directors of leading global companies who were selected for their deep expertise with large-scale corporate transformations, extensive knowledge of the building products and distribution sectors, and track records of unlocking shareholder value.

“We are proposing a slate of high-caliber, independent director nominees who are astute at delivering value to shareholders of large public companies,” said Brad Jacobs, chairman and chief executive officer of QXO. “If elected, our nominees would give Beacon’s shareholders a direct voice in advocating for an independent evaluation of QXO’s proposal.”

On January 27, 2025, QXO commenced a tender offer to purchase all outstanding shares of Beacon for $124.25 per share in cash for an aggregate enterprise value of approximately $11 billion, representing a 37% premium to Beacon’s 90-day unaffected volume-weighted average price per share as of November 15, 2024, when news of QXO’s offer was first brought to public attention. QXO’s offer price of $124.25 per share is higher than Beacon’s shares have ever traded. QXO’s tender offer will be outstanding until 12:00 midnight (New York City time) at the end of February 24, 2025. QXO has received antitrust clearance for the acquisition in both the U.S. and Canada and is prepared to complete it shortly after the offer expires, subject to the terms of the offer.

QXO intends to solicit proxies from Beacon stockholders by filing a proxy statement and universal WHITE proxy voting card for Beacon’s 2025 Annual Meeting. Beacon stockholders can choose to replace Beacon’s current directors and elect the 10 new directors proposed by QXO by voting “FOR” on the universal WHITE proxy card. Stockholders can cast their vote prior to or at Beacon’s 2025 Annual Meeting, which is expected to be held in May.

Nominees

QXO’s independent nominees for Beacon’s Board of Directors are:

Sheree Bargabos: Sheree Bargabos served as president, roofing and asphalt for over a decade with Owens Corning (NYSE: OC), a global manufacturer of building and composite material systems. During her 37-year tenure with the company, she held a variety of leadership roles, including vice president, customer experience, roofing. More recently, Ms. Bargabos was a non-executive director of the board and member of the governance committee of PGT Innovations, Inc. (formerly NYSE: PGTI), a manufacturer of high-performance windows and doors, until the company was acquired by MITER Brands in 2024. Since 2018, she has served on the board of Steel Dynamics, Inc. (Nasdaq: STLD), a leading steel producer in the U.S., where she sits on the audit and compensation committees.

Paul Camuti: Paul Camuti is the former executive vice president and chief technology and sustainability officer of Trane Technologies plc (NYSE: TT), a global leader in HVAC and refrigeration solutions for residential, commercial, and industrial markets, which separated from Ingersoll Rand, Inc. (NYSE: IR) in 2020. Prior to that, Mr. Camuti served as chief technology officer, corporate sustainability, and senior vice president, innovation, at Ingersoll Rand for nine years. Earlier, he spent 13 years at Siemens AG (OTC: SIEGY), holding various divisional executive leadership roles. Mr. Camuti currently serves on the board of Garrett Motion, Inc. (Nasdaq: GTX) and previously served on the board of The ExOne Company (formerly Nasdaq: XONE).

Karel Czanderna: Karel Czanderna is the former president, chief executive officer and a board director of Flexsteel Industries, Inc. (Nasdaq: FLXS), a global leader in the design and production of residential furniture. Prior to Flexsteel, she was group president of the building materials division of Owens Corning (NYSE: OC) and earlier held divisional executive leadership roles with Whirlpool Corp. (NYSE: WHR). Ms. Czanderna serves on the boards of Cibo Vita, Inc. and Soteria Flexibles, and previously served on the board of BlueLinx Holdings Inc. (NYSE: BXC), a wholesale distributor of building and industrial products.

Jonathan Foster: Jonathan Foster is the founder and a managing director of Current Capital Partners, an independent advisory and merchant banking firm. His 35-year career in financial and investment services includes 10 years with Lazard, Inc. (NYSE: LAZ), where he rose to managing director. He has served on more than 40 corporate boards, including current roles on the boards of Berry Global Group, Inc. (NYSE: BERY), Five Point Holdings, LLC (NYSE: FPH), and Lear Corp. (NYSE: LEA). Previously, he was a director and the audit committee chair of door manufacturer Masonite International Corp. for 15 years and served on the special transaction committee during the company’s sale to Owens Corning (NYSE: OC).

Mauro Gregorio: Mauro Gregorio is the former president of Performance Materials & Coatings at Dow Inc. (NYSE: DOW), a global leader in materials science. He previously served as chief executive officer of Dow Silicones Corp., formerly Dow Corning, and president of Dow Consumer Solutions. Mr. Gregorio serves on the board of Eagle Materials, Inc. (NYSE: EXP), a construction products manufacturer, and sits on the audit and corporate governance, nominating and sustainability committees. Mr. Gregorio also serves on the board of Radius Recycling, Inc. (Nasdaq: RDUS), formerly Schnitzer Steel Industries, Inc., and sits on the audit and compensation and human resources committees.

Michael Lenz: Michael Lenz is the former chief financial officer of FedEx Corp. (NYSE: FDX), overseeing all financial functions within its portfolio of transportation, e-commerce and supply chain management services. He held a variety of senior roles during his 18-year tenure with FedEx, including senior vice president and treasurer. Prior to FedEx, he was with American Airlines Group, Inc. (NYSE: AAL) for 11 years in investor relations, international network, and strategic planning roles. Mr. Lenz serves on the board of Methodist Le Bonheur Healthcare.

Teresa May: Teresa May is the president and owner of H+G Advisory, LLC and an advisor for portfolio operations at private equity firm KPS Capital Partners. Her 25-year career as an international growth and strategic marketing executive includes prior positions as chief marketing officer for American Woodmark Corp. (Nasdaq: AMWD), head of global strategic marketing for Owens Corning (NYSE: OC), and president of healthcare and chief strategy officer of security solutions for Stanley Black & Decker, Inc. (NYSE: SWK). Ms. May is a member of the board of Fluidmaster, Inc., a global leader in water management, and previously served on the boards of American Woodmark and Transcendia, Inc.

Stephen Newlin: Stephen Newlin is the former president, chief executive officer and chairman of the board of Univar Solutions, Inc. (NYSE: UNVR), a global chemicals distributor. Prior to Univar, he was president, chief executive officer and chairman of PolyOne Corp., now Avient Corp. (NYSE: AVNT), a specialty polymer manufacturer and distributor. Mr. Newlin is currently chairman of the board of Oshkosh Corp. (NYSE: OSK), a global equipment manufacturer, where he also sits on the audit, governance, and human resource committees. He previously served on the boards of The Chemours Company (NYSE: CC) and Valspar Corp (NYSE: VAL), prior to its acquisition by Sherwin Williams in 2017.

Joseph Reitmeier: Joseph Reitmeier is the former chief financial officer of Lennox International, Inc. (NYSE: LII), a global manufacturer of residential and commercial climate control solutions and refrigeration systems. Since 2016, he has served on the board of Watts Water Technologies, Inc. (NYSE: WTS), a global leader of water quality solutions. Mr. Reitmeier currently sits on the board’s audit committee, the governance and sustainability committees, and previously served on the nominating and corporate governance committee.

Wendy Whiteash: Wendy Whiteash is the former executive vice president, integration and strategic priorities, for US LBM Holdings, LLC, a leading distributor of roofing, siding, windows, doors, decking, and engineered components. Earlier, she served as US LBM’s chief human resources officer. Ms. Whiteash spent the first 17 years of her career with Ferguson Enterprises, Inc. (NYSE: FERG), the largest U.S. value-added distributor of plumbing, heating, ventilation, air conditioning and MRO solutions, where she held various roles in finance, operations and human resources.

Advisors

Morgan Stanley & Co. LLC is acting as lead financial advisor to QXO, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel.

About QXO

QXO provides technology solutions, primarily to clients in the manufacturing, distribution and service sectors. The company provides consulting and professional services, including specialized programming, training and technical support, and develops proprietary software. As a value-added reseller of business application software, QXO offers solutions for accounting, financial reporting, enterprise resource planning, warehouse management systems, customer relationship management, business intelligence and other applications. QXO plans to become a tech-forward leader in the $800 billion building products distribution industry. The company is targeting tens of billions of dollars of annual revenue in the next decade through accretive acquisitions and organic growth. Visit www.qxo.com for more information.

Forward-Looking Statements

This communication contains forward-looking statements. Statements that are not historical facts, including statements about beliefs, expectations, targets, goals, regulatory approval timing and nominating directors are forward-looking statements. These statements are based on plans, estimates, expectations and/or goals at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as “may,” “will,” “should,” “expect,” “opportunity,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal,” or “continue,” or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. Such factors include but are not limited to: the ultimate outcome of any possible transaction between QXO, Inc. (“QXO”) and Beacon Roofing Supply, Inc. (“Beacon”), including the possibility that the parties will not agree to pursue a business combination transaction or that the terms of any definitive agreement will be materially different from those proposed; uncertainties as to whether Beacon will cooperate with QXO regarding the proposed transaction; the ultimate result should QXO commence a proxy contest for election of directors to Beacon’s Board of Directors; QXO’s ability to consummate the proposed transaction with Beacon; the conditions to the completion of the proposed transaction, including the receipt of any required shareholder approvals and any required regulatory approvals; QXO’s ability to finance the proposed transaction; the substantial indebtedness QXO expects to incur in connection with the proposed transaction and the need to generate sufficient cash flows to service and repay such debt; that operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers or suppliers) may be greater than expected following the proposed transaction or the public announcement of the proposed transaction; QXO’s ability to retain certain key employees; and general economic conditions that are less favorable than expected. QXO cautions that forward-looking statements should not be relied on as predictions of future events, and these statements are not guarantees of performance or results. Forward-looking statements herein speak only as of the date each statement is made. QXO does not assume any obligation to update any of these statements in light of new information or future events, except to the extent required by applicable law.

Important Additional Information and Where to Find It

This communication is for informational purposes only and does not constitute a recommendation, an offer to purchase or a solicitation of an offer to sell Beacon securities. QXO and Queen MergerCo, Inc. (the “Purchaser”) filed a Tender Offer Statement on Schedule TO with the Securities and Exchange Commission (the “SEC”) on January 27, 2025, and Beacon filed a Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the tender offer with the SEC on February 6, 2025. Investors and security holders are urged to carefully read the Tender Offer Statement (including the Offer to Purchase, the related Letter of Transmittal and certain other tender offer documents, as each may be amended or supplemented from time to time) and the Solicitation/Recommendation Statement as these materials contain important information that investors and security holders should consider before making any decision regarding tendering their common stock, including the terms and conditions of the tender offer. The Tender Offer Statement, Offer to Purchase, Solicitation/Recommendation Statement and related materials are filed with the SEC, and investors and security holders may obtain a free copy of these materials and other documents filed by QXO and Beacon with the SEC at the website maintained by the SEC at www.sec.gov. In addition, the Tender Offer Statement and other documents that QXO and the Purchaser file with the SEC will be made available to all investors and security holders of Beacon free of charge from the information agent for the tender offer: Innisfree M&A Incorporated, 501 Madison Avenue, 20th Floor, New York, NY 10022, toll-free telephone: +1 (888) 750-5834.

QXO and the other participants intend to file a preliminary proxy statement and accompanying WHITE universal proxy card with the SEC to be used to solicit proxies for, among other matters, the election of its slate of director nominees at the 2025 Annual Meeting of stockholders of Beacon. QXO strongly advises all stockholders of Beacon to read the preliminary proxy statement, any amendments or supplements to such proxy statement, and other proxy materials filed by QXO with the SEC as they become available because they will contain important information. Such proxy materials will be available at no charge on the SEC’s website at www.sec.gov and at QXO’s website at investors.qxo.com. In addition, the participants in this proxy solicitation will provide copies of the proxy statement, and other relevant documents, without charge, when available, upon request. Requests for copies should be directed to the participants’ proxy solicitor.

Certain Information Concerning the Participants

The participants in the proxy solicitation are anticipated to be QXO, Brad Jacobs, Ihsan Essaid, Matt Fassler, Mark Manduca, Sheree Bargabos, Paul Camuti, Karel Czanderna, Jonathan Foster, Mauro Gregorio, Michael Lenz, Teresa May, Stephen Newlin, Joseph Reitmeier and Wendy Whiteash. As of the date of this communication, QXO owns 100 shares of common stock of Beacon in record name and Ms. Czanderna may be deemed to beneficially own 10 shares of common stock of Beacon held in a trust, for which Ms. Czanderna’s husband serves as trustee. As of the date of this communication, none of the other participants has any direct or indirect interest, by security holdings or otherwise, in Beacon.

Media Contacts

Joe Checkler
joe.checkler@qxo.com
203-609-9650

Steve Lipin / Lauren Odell
Gladstone Place Partners
212-230-5930

Investor Contacts

Mark Manduca
mark.manduca@qxo.com
203-321-3889

Scott Winter / Jonathan Salzberger
Innisfree M&A Incorporated
212-750-5833

The MIL Network –

February 13, 2025
MIL-OSI Canada: New appointments to Agricultural Products Marketing Council
The council is a public agency that oversees agricultural marketing boards and commissions to ensure they are implementing governance best practices, provides policy advice to the minister of Agriculture and Irrigation, and administers legislation for the agricultural industry and government.

“This is an important board, whose membership includes people with excellent agricultural credentials and experience. It provides the government with advice to ensure our ag industry remains competitive and innovative, while attracting investment, creating jobs and putting food on the tables of Alberta families and families across the country and around the world.”

RJ Sigurdson, Minister of Agriculture and Irrigation

Three appointees are returning for a second term, including the new council chair, John Buckley, and vice-chair, Henricus Bos. The new chair and vice-chair will assume their executive positions effective March 21, 2025. The third appointment for a second term is council member John Guelly.

Susan Novak continues to serve as the government’s representative.

“I am honoured to be appointed chair of the Marketing Council board. I’ve enjoyed the past three years on council, particularly helping amalgamate the former wheat and barley commissions and our continued focus on marketing board and commission bylaws. I look forward to working with my fellow council members, our boards and commissions and Minister Sigurdson to help ensure agriculture remains a strong and thriving sector in Alberta.”

John Buckley, chair of the Alberta Agricultural Products Marketing Council

Three other members are either completing their terms or have decided to resign due to other priorities. They will be replaced by three new council members, who will infuse new ideas and perspectives into the council. They are:
- Ian Chitwood
- Susan Schafers
- David Moss
The new council members will start their first term on March 21, 2025.

The government appoints council members using an open and competitive application and members are chosen based on experience and credentials.

Quick facts
- The Alberta Agricultural Products Marketing Council is established under the Marketing of Agricultural Products Act. The council currently has seven members, including a Government of Alberta representative.
- Council members can serve a maximum of two consecutive terms (one term is three years) and are appointed by an order-in-council.
Related information – Biographies

John Buckley: John and his wife operate a cow-calf operation southwest of Cochrane. John has 40 years of experience in the livestock industry. John has been active in his community and industry and continues to be involved with a number of organizations and groups. His passion for rangelands, specifically grasslands, fuels his desire to operate in such a way that leaves the land in a better state than when he started operating on it, creating opportunity for future generations.

Henricus Bos: Hennie is a farmer, on-farm processor and industry leader. He has filled many leadership roles in the Alberta and Canadian dairy industry as director and chair of Alberta Milk, as well as commissioner at the Canadian Dairy Commission. Being involved provincially and nationally in the dairy industry, combined with Bles-Wold yogurt processing experience, Hennie knows the industry and supply management well. Hennie holds a bachelor of science in dairy science and has completed several governance and business courses.

John Guelly: John is a third-generation grain and oilseed farmer from north-central Alberta. He, his wife and two children have been farming for more than 30 years. John was a regional director for Alberta Canola from 2015-2021 (chair from 2019-2021), and has served on numerous other local, provincial, and national boards and committees in the agricultural industry. John graduated from the University of Alberta with a B.Sc. in agricultural engineering and previously worked full-time in manufacturing, as well as consulting while operating the farm.

Ian Chitwood: Ian is a farmer and a professor who works with students to advance agriculture. Ian has extensive board experience with Alberta Canola, Agsafe Alberta and Verb Theatre. Ian has a PhD in business from Athabasca University, a MBA, a M.A., and a B.Comm from the University of Alberta.

Susan Schafers: Susan is a second-generation pullet and cattle farmer who is past chair for Egg Farmers of Alberta and current chair for Parkland County’s Agricultural Service Board. Susan has broad experience serving on local, provincial and national boards as well as various committees. She has strong governance training and experience in facilitation and consensus building. She holds a B.Sc. in agriculture and food business management from the University of Alberta.

David Moss: David is the director of business development (Animal Agriculture) for TELUS Agriculture. Previously, he was the general manager of the Canadian Cattle Association where he led the animal health file and worked closely with the Government of Canada and the Canadian Food Inspection Agency on numerous files, including co-chairing the working group responsible for Canada regaining negligible-risk status for bovine spongiform encephalopathy (BSE) by the World Organization for Animal Health. He was co-founder and vice-president of AgriClear LP, an enterprise level online agri-business marketplace joint venture with the TMX Group. He has also held executive roles at ITS Global and Livestock Identification Services. An entrepreneur by nature, David has been in the agriculture industry his entire career. He helped build ranch-to-retail alliances in the United States, Australia and South America and brings a focus on innovation, data technology, and international business knowledge and experience. David holds a master of arts in Leadership Studies from the University of Guelph, a bachelor of management from the University of Lethbridge, and a master’s certificate in project management from York University. He serves on numerous industry committees and is an active volunteer in his Okotoks community.

Susan Novak: Susan has a wealth of experience in leading policy, programs and people. She received her PhD in animal science from the University of Alberta and completed a post-doctoral fellowship at Laval University. Susan started her career at Agriculture and Irrigation as the provincial horse specialist, and now is the executive director of the animal health and assurance branch. She also has a wealth of experience delivering agriculture research funding programming to support a competitive and sustainable agriculture industry in Alberta.

Frank Robinson: Frank has a PhD from the University of Guelph and has been a University of Alberta professor for 35 years. He has worked with broiler breeder chickens to improve reproductive fitness. He has taught introductory animal science classes to more than 1,000 students with a focus on experiential learning. Frank has served as vice-provost and dean of students at the University of Alberta. He has fulfilled leadership roles in several agricultural and academic boards and associations. He was inducted into the Alberta Agriculture Hall of Fame in 2006.

MIL OSI Canada News –
February 13, 2025

MIL-OSI: Birchcliff Energy Ltd. Announces Unaudited 2024 Full-Year and Fourth Quarter Results and 2024 Reserves Highlights

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Feb. 12, 2025 (GLOBE NEWSWIRE) — Birchcliff Energy Ltd. (“Birchcliff” or the “Corporation”) (TSX: BIR) is pleased to announce its unaudited 2024 full-year and fourth quarter financial and operational results and highlights from its independent reserves evaluation effective December 31, 2024.

“Due to the success of our 2024 capital program and driven by our improved capital efficiencies, we delivered annual average production of 76,695 boe/d and adjusted funds flow⁽¹⁾ of $236.8 million and returned $107.8 million to shareholders through common share dividends in 2024,” commented Chris Carlsen, President and Chief Executive Officer of Birchcliff. “The 27 wells we brought on production as part of the 2024 capital program delivered strong PDP reserves additions of 34.1 MMboe, which highlights the quality of our assets. We believe that there is significant intrinsic shareholder value embedded in Birchcliff’s asset base that is not reflected in our current share price, as demonstrated by our PDP reserves net asset value per common share⁽²⁾ of $6.35 and $13.79 and $18.09 for our proved and proved plus probable reserves, respectively.⁽³⁾ In addition, our Elmworth asset, which is largely unbooked from a reserves basis, provides us with significant inventory and a large potential future development area consisting of approximately 145 net sections of Montney lands.”

“Our strategy for 2025 builds off of the operational momentum from 2024, maintaining our focus on capital efficiency improvements and further driving down costs. Our 2025 capital program has been designed to ensure that our capital is strategically deployed throughout the year, providing us with the flexibility to adjust our capital spending if necessary in response to the commodity price volatility we expect during 2025, including as a result of the potential for U.S. and Canadian tariffs and the start-up of LNG Canada.”

2024 Financial and Operational Highlights

Delivered annual average production of 76,695 boe/d (82% natural gas and 18% liquids) in 2024 and quarterly average production of 77,623 boe/d (82% natural gas and 18% liquids) in Q4 2024.
Generated annual adjusted funds flow of $236.8 million in 2024 and quarterly adjusted funds flow of $71.8 million in Q4 2024. Cash flow from operating activities was $203.7 million in 2024 and $45.6 million in Q4 2024.
Reported annual net income to common shareholders of $56.1 million in 2024 and quarterly net income to common shareholders of $35.2 million in Q4 2024.
F&D capital expenditures were $273.1 million in 2024 and $58.3 million in Q4 2024. Birchcliff drilled 29 (29.0 net) wells and brought 27 (27.0 net) wells on production in 2024.
Returned $107.8 million to shareholders in 2024 through common share dividends.

2024 Reserves Highlights⁽⁴⁾

Birchcliff brought 27 new wells on production as part of its 2024 F&D capital program with strong PDP reserves additions of 34.1 MMboe (1.26 MMboe per well) and delivered PDP F&D costs⁽⁵⁾ of $8.01/boe, resulting in a PDP F&D operating netback recycle ratio⁽²⁾ of 1.4x in 2024 on such additions.
Birchcliff added an aggregate of 23.7 MMboe of PDP reserves on an F&D basis in 2024, after adding back 2024 actual production of 28.1 MMboe⁽⁶⁾ and including all other applicable PDP reserves adjustments in 2024. Birchcliff’s PDP reserves totalled 217.1 MMboe at December 31, 2024.
Birchcliff delivered PDP F&D costs of $11.52/boe and a PDP F&D operating netback recycle ratio of 1.0x on its aggregate 23.7 MMboe of PDP reserves additions, notwithstanding $18.8 million in F&D capital expenditures spent on strategic priorities in Elmworth for which there was no production or reserves assigned at year-end 2024.
At December 31, 2024, the net present value of future net revenue (before income taxes, discounted at 10%) was $2.3 billion for Birchcliff’s PDP reserves, $4.4 billion for its proved reserves and $5.6 billion for its proved plus probable reserves.
The net asset value per common share of Birchcliff’s PDP, proved and proved plus probable reserves at December 31, 2024 was $6.35, $13.79 and $18.09, respectively, which is 9%, 136% and 210% higher than the closing price of its common shares on the TSX on February 10, 2025 of $5.84.
Reserves life index⁽⁵⁾ at December 31, 2024 of 7.7 years on a PDP basis, 23.6 years on a proved basis and 34.3 years on a proved plus probable basis.

Birchcliff anticipates filing its annual information form and audited financial statements and related management’s discussion and analysis for the year ended December 31, 2024 on March 12, 2025.

^{This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. For further information regarding the forward-looking statements and forward-looking information contained herein, see “Advisories – Forward-Looking Statements”. With respect to the disclosure of Birchcliff’s reserves and related reserves metrics contained in this press release, see “2024 Year-End Reserves”, “Presentation of Oil and Gas Reserves” and “Advisories – Oil and Gas Metrics”. With respect to the disclosure of Birchcliff’s production contained in this press release, unless otherwise stated herein, production volumes have been disclosed on a “gross” basis as such term is defined in National Instrument 51-101– Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). For further information regarding the disclosure of Birchcliff’s production contained herein, see “Advisories – Production”. In addition, this press release uses various “non-GAAP financial measures”, “non-GAAP ratios” and “capital management measures” as such terms are defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”). Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under GAAP and might not be comparable to similar financial measures disclosed by other issuers. For further information regarding the non-GAAP and other financial measures used in this press release, see “Non-GAAP and Other Financial Measures”.}

______________________________

^{(1) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures”.}

^{(2) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.}

^{(3) Net asset value per common share is at December 31, 2024 and before income taxes (discounted at 10%). See “2024 Year-End Reserves – Net Asset Value”.}

^{(4) Deloitte LLP (“Deloitte”) prepared an independent evaluation of the Corporation’s reserves effective December 31, 2024 as contained in their report dated February 12, 2025 (the “Deloitte Report”). The forecast commodity prices, inflation and exchange rates utilized in the Deloitte Report were computed using the average of forecasts from Deloitte, McDaniel & Associates Consultants Ltd. (“McDaniel”), GLJ Ltd. (“GLJ”) and Sproule Associates Limited (“Sproule”) effective January 1, 2025 (the “2024 Price Forecast”). See “2024 Year-End Reserves” and “Presentation of Oil and Gas Reserves”.}

^{(5) See “Advisories – Oil and Gas Metrics”.}

^{(6) Consists of 738.2 Mbbls of light oil, 1,619.6 Mbbls of condensate, 2,591.3 Mbbls of NGLs and 138,728.6 MMcf of natural gas.}

2024 UNAUDITED FINANCIAL AND OPERATIONAL SUMMARY

	Three months ended December 31,				Twelve months ended December 31,
	2024		2023		2024		2023
OPERATING
Average production
Light oil (bbls/d)	1,993		1,649		2,017		1,849
Condensate (bbls/d)	4,310		5,145		4,425		5,202
NGLs (bbls/d)	7,748		7,653		7,080		6,306
Natural gas (Mcf/d)	381,433		372,594		379,040		374,052
Total (boe/d)	77,623		76,546		76,695		75,699
Average realized sales prices (CDN$)⁽¹⁾
Light oil (per bbl)	95.18		100.07		98.90		99.07
Condensate (per bbl)	95.79		103.80		99.66		103.76
NGLs (per bbl)	26.20		26.95		26.37		26.92
Natural gas (per Mcf)	2.27		2.92		2.05		3.03
Total (per boe)	21.53		26.02		20.90		26.79

NETBACK AND COST ($/boe)
Petroleum and natural gas revenue⁽¹⁾	21.53		26.03		20.91		26.80
Royalty expense	(1.26	)	(2.75	)	(1.41	)	(2.54	)
Operating expense	(2.91	)	(3.81	)	(3.24	)	(3.83	)
Transportation and other expense⁽²⁾	(5.26	)	(5.53	)	(5.24	)	(5.69	)
Operating netback⁽²⁾	12.10		13.94		11.02		14.74
G&A expense, net	(2.00	)	(1.80	)	(1.45	)	(1.52	)
Interest expense	(1.40	)	(0.95	)	(1.31	)	(0.74	)
Lease interest expense	(0.33	)	–		(0.16	)	–
Realized gain (loss) on financial instruments	1.68		(0.38	)	0.33		(1.35	)
Other cash income (expense)	0.01		0.01		0.01		(0.03	)
Adjusted funds flow⁽²⁾	10.06		10.82		8.44		11.10
Depletion and depreciation expense	(8.96	)	(8.44	)	(8.79	)	(8.20	)
Unrealized gain (loss) on financial instruments	5.95		(1.58	)	3.51		(1.38	)
Other expenses⁽³⁾	(0.75	)	(1.88	)	(0.52	)	(0.95	)
Deferred income tax (expense) recovery	(1.37	)	0.29		(0.64	)	(0.22	)
Net income (loss) to common shareholders	4.93		(0.79	)	2.00		0.35

FINANCIAL
Petroleum and natural gas revenue ($000s)⁽¹⁾	153,741		183,295		586,856		740,359
Cash flow from operating activities ($000s)	45,641		79,006		203,710		320,529
Adjusted funds flow ($000s)⁽⁴⁾	71,838		76,215		236,794		306,827
Per basic common share ($)⁽²⁾	0.27		0.29		0.88		1.15
Free funds flow ($000s)⁽⁴⁾	13,528		18,049		(36,290	)	2,190
Per basic common share ($)⁽²⁾	0.05		0.07		(0.13	)	0.01
Net income (loss) to common shareholders ($000s)	35,216		(5,533	)	56,100		9,780
Per basic common share ($)	0.13		(0.02	)	0.21		0.04
End of period basic common shares (000s)	271,304		267,156		271,304		267,156
Weighted average basic common shares (000s)	270,185		266,667		269,081		266,465
Dividends on common shares ($000s)	27,126		53,390		107,833		213,344
F&D capital expenditures ($000s)⁽⁵⁾	58,310		58,166		273,084		304,637
Total capital expenditures ($000s)⁽⁴⁾	66,673		59,541		282,745		307,916
Revolving term credit facilities ($000s)	566,857		372,097		566,857		372,097
Total debt ($000s)⁽⁶⁾	535,557		382,306		535,557		382,306

^{(1) Excludes the effects of financial instruments but includes the effects of any physical delivery contracts.}

^{(2) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.}

^{(3) Includes non-cash items such as compensation, accretion, amortization of deferred financing fees and other gains and losses.}

^{(4) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures”.}

^{(5) See “Advisories – F&D Capital Expenditures”.}

^{(6) Capital management measure. See “Non-GAAP and Other Financial Measures”.}

FULL-YEAR AND Q4 2024 UNAUDITED FINANCIAL AND OPERATIONAL RESULTS

Production

Birchcliff’s production averaged 76,695 boe/d in 2024, a 1% increase from 2023. Production averaged 77,623 boe/d in Q4 2024, a 1% increase from Q4 2023. Birchcliff’s annual average production for 2024 was at the high-end of its guidance range of 75,000 to 77,000 boe/d.
The increases were primarily due to the strong performance of the Corporation’s capital program and the successful drilling of new Montney/Doig wells brought on production, partially offset by natural production declines. Full-year production in 2023 was negatively impacted by an unplanned system outage on Pembina’s Northern Pipeline system, which reduced the Corporation’s NGLs sales volumes in 2023.
Liquids accounted for 18% of Birchcliff’s total production in both 2024 and 2023, which was in line with Birchcliff’s guidance of 19%. Liquids accounted for 18% of Birchcliff’s total production in Q4 2024 as compared to 19% in Q4 2023.

Adjusted Funds Flow and Cash Flow From Operating Activities

Birchcliff generated adjusted funds flow of $236.8 million in 2024, or $0.88 per basic common share, both of which decreased by 23% from 2023. Adjusted funds flow was $71.8 million in Q4 2024, or $0.27 per basic common share, a 6% and 7% decrease from Q4 2023, respectively. Birchcliff’s full-year adjusted funds flow in 2024 was higher than its guidance of $230 million primarily due to lower than expected royalty and G&A expenses.
Birchcliff’s cash flow from operating activities was $203.7 million in 2024, a 36% decrease from 2023. Cash flow from operating activities was $45.6 million in Q4 2024, a 42% decrease from Q4 2023.
The decreases in adjusted funds flow and cash flow from operating activities were primarily due to lower natural gas revenue, which was largely the result of a 32% and 22% decrease in the average realized sales price Birchcliff received for its natural gas production in the full-year and Q4 2024, respectively, as compared to 2023, and higher interest expenses. Birchcliff’s adjusted funds flow and cash flow from operating activities were positively impacted by lower royalty expenses and realized gains on financial instruments of $9.3 million and $12.0 million in the full-year and Q4 2024, respectively, as compared to realized losses on financial instruments of $37.3 million and $2.6 million in 2023.

Net Income (Loss) to Common Shareholders

Birchcliff earned net income to common shareholders of $56.1 million in 2024, or $0.21 per basic common share, as compared to $9.8 million and $0.04 per basic common share in 2023. The increases were primarily due to an unrealized mark-to-market gain on financial instruments of $98.6 million in 2024 as compared to an unrealized mark-to-market loss on financial instruments of $38.2 million in 2023, partially offset by lower adjusted funds flow in 2024.
Birchcliff earned net income to common shareholders of $35.2 million in Q4 2024, or $0.13 per basic common share, as compared to a net loss to common shareholders of $5.5 million and $0.02 per basic common share in Q4 2023. The change to a net income position was primarily due to an unrealized mark-to-market gain on financial instruments of $42.5 million in Q4 2024 as compared to an unrealized mark-to-market loss on financial instruments of $11.1 million in Q4 2023.

Debt and Credit Facilities

Total debt at December 31, 2024 was $535.6 million, a 40% increase from December 31, 2023. Birchcliff’s 2024 year-end total debt was at the high-end of its guidance range of $515 million to $535 million.
At December 31, 2024, Birchcliff had a balance outstanding under its extendible revolving credit facilities (the “Credit Facilities”) of $570.9 million (December 31, 2023: $374.1 million) from available Credit Facilities of $850.0 million (December 31, 2023: $850.0 million), leaving the Corporation with $279.1 million (33%) of unutilized credit capacity after adjusting for outstanding letters of credit and unamortized deferred financing fees. This unutilized credit capacity provides Birchcliff with significant financial flexibility and available capital resources. The Credit Facilities have a maturity date of May 11, 2027 and do not contain any financial maintenance covenants.

Marketing and Natural Gas Market Diversification

Birchcliff’s physical natural gas sales exposure primarily consists of the AECO, Dawn and Alliance markets. In addition, the Corporation has various financial instruments outstanding that provide it with exposure to NYMEX HH pricing.

The following table sets forth Birchcliff’s effective sales, production and average realized sales price for natural gas and liquids for Q4 2024, after taking into account the Corporation’s financial instruments:

Three months ended December 31, 2024
	Effective sales (CDN$000s)	Percentage of total sales (%)	Effective production (per day)	Percentage of total natural gas production (%)	Percentage of total corporate production (%)	Effective average realized sales price (CDN$)
Market
AECO⁽¹⁾⁽²⁾	11,831	6	82,345 Mcf	21	18	1.56/Mcf
Dawn⁽³⁾	48,281	26	162,555 Mcf	43	35	3.23/Mcf
NYMEX HH⁽¹⁾⁽⁴⁾	53,015	28	136,533 Mcf	36	29	4.22/Mcf
Total natural gas⁽¹⁾	113,127	60	381,433 Mcf	100	82	3.22/Mcf
Light oil	17,450	10	1,993 bbls		3	95.18/bbl
Condensate	37,985	20	4,310 bbls		5	95.79/bbl
NGLs	18,679	10	7,748 bbls		10	26.20/bbl
Total liquids	74,114	40	14,051 bbls		18	57.33/bbl
Total corporate⁽¹⁾	187,241	100	77,623 boe		100	26.22/boe

^{(1) Effective sales and effective average realized sales price on a total natural gas and total corporate basis and for the AECO and NYMEX HH markets are non-GAAP financial measures and non-GAAP ratios, respectively. See “Non-GAAP and Other Financial Measures”.}

^{(2) Birchcliff has short-term physical sales agreements with third-party marketers to sell and deliver into the Alliance pipeline system. All of Birchcliff’s short-term physical Alliance sales and production during Q4 2024 received AECO premium pricing and have therefore been included as effective sales and production in the AECO market.}

^{(3) Birchcliff has agreements for the firm service transportation of an aggregate of 175,000 GJ/d of natural gas on TransCanada PipeLines’ Canadian Mainline, whereby natural gas is transported to the Dawn trading hub in Southern Ontario.}

^{(4) NYMEX HH effective sales and production include financial NYMEX HH/AECO 7A basis swap contracts for an aggregate of 147,500 MMBtu/d at an average contract price of NYMEX HH less US$1.12/MMBtu during Q4 2024.
Birchcliff’s effective average realized sales price for NYMEX HH of CDN$4.22/Mcf (US$2.76/MMBtu) was determined on a gross basis before giving effect to the average NYMEX HH/AECO 7A fixed contract basis differential price of CDN$1.71/Mcf (US$1.12/MMBtu) and includes any realized gains and losses on financial NYMEX HH/AECO 7A basis swap contracts during Q4 2024.
After giving effect to the NYMEX HH/AECO 7A fixed contract basis differential price and including any realized gains and losses on financial NYMEX HH/AECO 7A basis swap contracts during Q4 2024, Birchcliff’s effective average realized net sales price for NYMEX HH was CDN$2.51/Mcf (US$1.64/MMBtu) in Q4 2024.}

The following table sets forth Birchcliff’s physical sales, production, average realized sales price, transportation costs and natural gas sales netback by natural gas market for the periods indicated, before taking into account the Corporation’s financial instruments:

Three months ended December 31, 2024
Natural gas market	Natural gas sales⁽¹⁾ (CDN$000s)	Percentage of natural gas sales (%)	Natural gas production (Mcf/d)	Percentage of natural gas production (%)	Average realized natural gas sales price⁽¹⁾ (CDN$/Mcf)	Natural gas transportation costs⁽²⁾ (CDN$/Mcf)	Natural gas sales netback⁽³⁾ (CDN$/Mcf)
AECO	31,027	39	216,321	57	1.57	0.38	1.19
Dawn	48,281	60	162,555	42	3.23	1.43	1.80
Alliance⁽⁴⁾	307	1	2,557	1	1.30	–	1.30
Total	79,615	100	381,433	100	2.27	0.83	1.44
Three months ended December 31, 2023
Natural gas market	Natural gas sales⁽¹⁾ (CDN$000s)	Percentage of natural gas sales (%)	Natural gas production (Mcf/d)	Percentage of natural gas production (%)	Average realized natural gas sales price⁽¹⁾ (CDN$/Mcf)	Natural gas transportation costs⁽²⁾ (CDN$/Mcf)	Natural gas sales netback⁽³⁾ (CDN$/Mcf)
AECO	50,508	51	203,024	55	2.72	0.38	2.33
Dawn	47,433	47	161,119	43	3.20	1.42	1.78
Alliance⁽⁴⁾	2,016	2	8,451	2	2.59	–	2.59
Total	99,957	100	372,594	100	2.92	0.83	2.09

^{(1) Excludes the effects of financial instruments but includes the effects of any physical delivery contracts.}

^{(2) Reflects costs to transport natural gas from the field receipt point to the delivery sales trading hub.}

^{(3) Natural gas sales netback denotes the average realized natural gas sales price less natural gas transportation costs.}

^{(4) Birchcliff has short-term physical sales agreements with third-party marketers to sell and deliver into the Alliance pipeline system. Alliance sales are recorded net of transportation tolls.}

Capital Activities and Investment

F&D capital expenditures were $273.1 million in 2024, as compared to Birchcliff’s guidance of $250 million to $270 million.
In 2024, the Corporation achieved a significant year-over-year improvement in capital efficiency⁽⁷⁾ for its wells of approximately 24% compared to 2023. The following table sets forth the wells that were drilled and brought on production in 2024:

			Number of wells drilled in 2024⁽¹⁾	Number of wells brought on production in 2024
Pouce Coupe

	04-30 (5-well pad)	Montney D1	0⁽²⁾	5

	16-17 (5-well pad)	BD/UM	1	1
		Montney D1	3	3
		Montney D4	1	1

	16-15 (6-well pad)	Montney D1	6	6

	10-22 (5-well pad)	Montney D1	5	5

	04-05 (5-well pad)	Montney D1	5	0⁽³⁾

Gordondale

	02-27 (2-well pad)	Montney D1	1	1
		Montney D2	1	1

	01-10 (4-well pad)	Montney D1	4	4

Elmworth

	13-09 vertical	Montney	1	0

	01-28 horizontal	Montney	1	0

TOTAL			29	27

^{(1) All wells are natural gas wells, except for the 4-well 01-10 pad, which are light oil wells.}

^{(2) The five wells drilled on the 04-30 pad were drilled in December 2023.}

^{(3) The five wells drilled on the 04-05 pad are scheduled to come on production later in February 2025.}

^{______________________________}

^{(7) See “Advisories – Oil and Gas Metrics”.}

UPDATE ON 2025 CAPITAL PROGRAM

As disclosed in Birchcliff’s press release dated January 22, 2025, the Corporation’s board of directors (the “Board”) approved a disciplined F&D capital budget of $260 million to $300 million for 2025. Benefitting from the learnings gained from the Corporation’s 2024 capital program, the wells in Birchcliff’s 2025 capital program are expected to yield strong production, using the Corporation’s latest field development practices and wellbore design, which incorporates longer lateral lengths, reduced cluster spacing and increased proppant loading where appropriate.
The Corporation successfully completed drilling its 5-well 04-05 pad in Pouce Coupe in December 2024. Completions operations are currently underway on the pad, with the wells scheduled to come on production later in February 2025. The pad was drilled in the Lower Montney targeting high-rate natural gas wells.
The Corporation is currently drilling its 3-well 07-10 pad in Pouce Coupe. The pad is targeting condensate-rich natural gas wells in the Lower Montney. The wells are anticipated to be brought on production at the end of Q1 2025.
The Corporation successfully completed drilling its 4-well 02-27 pad in Gordondale in February 2025, with completions operations scheduled to begin in March 2025. The pad is targeting condensate-rich natural gas wells in the Lower Montney. The wells are anticipated to be brought on production in early Q2 2025.
In Elmworth, the Corporation completed a horizontal land retention well and has commenced a short clean-up test. As disclosed in the Corporation’s press release on January 22, 2025, this well is not currently planned to be tied in.

U.S. AND CANADIAN TARIFFS

While Birchcliff hopes that there will not be a trade dispute between the United States and Canada, the Corporation believes that Canada’s over-reliance on exporting its energy into the U.S. must be addressed through the reduction of red tape and government interference in the construction of critical infrastructure such as oil and gas pipelines to the east and west coasts of Canada, LNG terminals on each coast and an increase in refining capacity within Canada, in order to diversify Canada’s energy export market. The Corporation continues to actively monitor this situation.
Birchcliff believes that its ongoing strategy of maintaining significant natural gas market diversification for 2025 will continue to protect the Corporation from volatility in the North American natural gas pricing environment, including as it relates to potential tariffs. Approximately 41% of Birchcliff’s natural gas production is physically delivered to the Dawn trading hub in Ontario, which is priced in U.S. dollars, and the Corporation also has U.S. denominated financial contracts that expose approximately 35% of its natural gas production to NYMEX HH pricing on a financial basis, without physical delivery into the United States.

2024 YEAR-END RESERVES

The reserves data set forth below at December 31, 2024 is based upon the Deloitte Report, which has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”) and NI 51-101.

The reserves data provided in this press release presents only a portion of the disclosure required under NI 51-101. The disclosure required under NI 51-101 will be contained in Birchcliff’s annual information form for the year ended December 31, 2024, which is expected to be filed on SEDAR+ (www.sedarplus.ca) on March 12, 2025.

In some of the tables below, numbers may not add due to rounding. The estimates of future net revenue contained herein do not represent fair market value. For additional information regarding the presentation of Birchcliff’s reserves disclosure contained herein, see “Presentation of Oil and Gas Reserves” and “Advisories” in this press release.

Reserves Summary

The following table summarizes the estimates of Birchcliff’s gross reserves at December 31, 2024 and December 31, 2023, estimated using the forecast price and cost assumptions in effect as at the effective date of the applicable reserves evaluation:

Reserves Category	December 31, 2024 (Mboe)	December 31, 2023⁽¹⁾ (Mboe)	% Change
Proved Developed Producing	217,076	220,536	(2)
Total Proved	667,390	691,886	(4)
Total Proved Plus Probable	969,636	993,897	(2)

^{(1) Deloitte prepared an independent evaluation of the Corporation’s reserves effective December 31, 2023 as contained in their report dated February 14, 2024 (the “2023 Deloitte Report”). The forecast commodity prices, inflation and exchange rates utilized in the 2023 Deloitte Report were computed using the average of forecasts from Deloitte, McDaniel, GLJ and Sproule effective January 1, 2024 (the “2023 Price Forecast”).}

The following table sets forth Birchcliff’s light crude oil and medium crude oil, conventional natural gas, shale gas and NGLs reserves at December 31, 2024, estimated using the 2024 Price Forecast:

Reserves Category		Light Crude Oil and Medium Crude Oil		Conventional Natural Gas		Shale Gas		NGLs⁽¹⁾		Total Oil Equivalent
Reserves Category		*Gross* (Mbbls)	*Net* (Mbbls)	*Gross* (MMcf)	*Net* (MMcf)	*Gross* (MMcf)	*Net* (MMcf)	*Gross* (Mbbls)	*Net* (Mbbls)	*Gross* (Mboe)	*Net* (Mboe)
Proved
	Developed Producing	4,889	3,946	6,051	5,707	1,053,238	971,102	35,639	29,058	217,076	195,805
	Developed Non-Producing	9	9	0	0	4,840	4,537	239	203	1,054	968
	Undeveloped	7,089	5,747	2,858	2,625	2,320,235	2,094,569	54,988	42,966	449,259	398,246
Total Proved		11,987	9,701	8,909	8,332	3,378,312	3,070,208	90,866	72,227	667,390	595,019
Total Probable		9,083	6,933	5,270	4,911	1,442,846	1,272,820	51,811	39,640	302,246	259,529
Total Proved Plus Probable		21,070	16,635	14,179	13,243	4,821,158	4,343,028	142,676	111,868	969,636	854,547

^{(1) NGLs includes condensate.}

Net Present Values of Future Net Revenue

The following table sets forth the net present values of future net revenue attributable to Birchcliff’s reserves at December 31, 2024, estimated using the 2024 Price Forecast, before deducting future income tax expenses and calculated at various discount rates:

Reserves Category	Before Income Taxes Discounted At (%/year)					Unit Value Discounted at 10%/year ($/boe)⁽¹⁾
Reserves Category	0 ($000s)	5 ($000s)	10 ($000s)	15 ($000s)	20 ($000s)	Unit Value Discounted at 10%/year ($/boe)⁽¹⁾
Proved
Developed Producing	3,670,971	2,851,081	2,277,750	1,892,104	1,621,811	11.63
Developed Non-Producing	13,717	9,900	7,499	5,888	4,750	7.75
Undeveloped	7,083,864	3,707,943	2,073,919	1,199,557	694,944	5.21
Total Proved	10,768,552	6,568,924	4,359,168	3,097,549	2,321,504	7.33
Total Probable	6,210,051	2,553,082	1,204,663	632,630	361,133	4.64
Total Proved Plus Probable	16,978,602	9,122,005	5,563,831	3,730,179	2,682,638	6.51

^{(1) Unit values are based on net reserves volumes.}

Net Asset Value

Net asset value reflects the estimated long-term fair value of Birchcliff’s underlying reserves assets after settling its outstanding financial obligations at a point in time. The net present value of the Corporation’s reserves can vary significantly depending on the oil and natural gas price assumptions used by Deloitte and assumes only the reserves identified in the applicable reserves report, with no further acquisitions or incremental development.

The following table sets forth Birchcliff’s net asset value for its PDP, total proved and total proved plus probable reserves for the periods indicated:

($000s, except per share amounts)	Proved Developed Producing						Total Proved						Total Proved Plus Probable
As at December 31,		2024			2023			2024			2023			2024			2023
Reserves, NPV10%⁽¹⁾		2,277,750			2,620,064			4,359,168			5,405,617			5,563,831			6,835,417
Total debt⁽²⁾		(535,557	)		(382,306	)		(535,557	)		(382,306	)		(535,557	)		(382,306	)
Unexercised securities⁽³⁾		34,961			16,717			34,961			16,717			34,961			16,717
Net asset value⁽⁴⁾⁽⁵⁾		1,777,154			2,254,475			3,858,572			5,040,028			5,063,235			6,469,828
Net asset value (per common share)^(4)(5)(6)	$6.35			$8.22			$13.79			$18.38			$18.09			$23.60

^{(1) Represents the net present value of the future net revenue (before income taxes, discounted at 10%) of Birchcliff’s PDP, total proved and total proved plus probable reserves, as applicable, as estimated by Deloitte effective December 31, 2024 and December 31, 2023, using forecast prices and costs.}

^{(2) Capital management measure. See “Non-GAAP and Other Financial Measures”.}

^{(3) Represents the value of unexercised in-the-money stock options and performance warrants outstanding at the end of the year. The closing trading price on the TSX of Birchcliff’s common shares on December 31, 2024 and December 29, 2023 was $5.42 and $5.78, respectively.}

^{(4) Excludes any value from undeveloped land and seismic.}

^{(5) Net asset value is a non-GAAP financial measure and net asset value per common share is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.}

^{(6) For 2024, based on 279.9 million common shares, which includes 271.3 million basic common shares outstanding at December 31, 2024 and 8.6 million dilutive common shares from unexercised in-the-money stock options and performance warrants outstanding at December 31, 2024. For 2023, based on 274.2 million common shares, which includes 267.2 million basic common shares outstanding at December 31, 2023 and 7.0 million dilutive common shares from unexercised in-the-money stock options and performance warrants outstanding at December 31, 2023.}

Net asset value decreased in all categories of reserves in 2024 as compared to 2023 primarily due to lower forecast prices in the 2024 Price Forecast compared to the 2023 Price Forecast, including an AECO price decrease of approximately 20% for 2025 through 2027 and approximately 11% thereafter.

Pricing Assumptions

The following table sets forth the 2024 Price Forecast used in the Deloitte Report:

Year	Crude Oil		Natural Gas⁽¹⁾		NGLs					Currency Exchange Rate (US$/CDN$)	Price and Cost Inflation Rates (%)

	WTI at Cushing Oklahoma (US$/bbl)	Edmonton City Gate (CDN$/bbl)	Alberta AECO Average Price (CDN$/Mcf)	Ontario Dawn Reference Point (CDN$/Mcf)	NYMEX Henry Hub (US$/Mcf)	Edmonton Ethane (CDN$/bbl)	Edmonton Propane (CDN$/bbl)	Edmonton Butane (CDN$/bbl)	Edmonton Pentanes + Condensate (CDN$/bbl)
2025	71.19	94.00	2.35	4.28	3.30	7.27	32.05	48.68	98.02	0.714	0.0
2026	73.20	94.84	3.32	4.83	3.76	10.40	31.19	47.43	97.60	0.731	2.0
2027	74.54	95.28	3.52	4.94	3.93	11.04	31.28	47.63	97.43	0.736	2.0
2028	76.28	96.40	3.69	5.05	4.01	11.61	31.70	48.26	98.60	0.758	2.0
2029	77.81	98.33	3.77	5.14	4.10	11.85	32.33	49.22	100.58	0.758	2.0
2030	79.37	100.30	3.84	5.25	4.17	12.08	32.98	50.20	102.57	0.758	2.0
2031	80.96	102.31	3.92	5.34	4.25	12.34	33.64	51.21	104.63	0.758	2.0
2032	82.57	104.36	3.99	5.46	4.34	12.58	34.31	52.24	106.73	0.758	2.0
2033	84.22	106.44	4.08	5.58	4.43	12.85	35.00	53.27	108.86	0.758	2.0
2034	85.91	108.57	4.16	5.68	4.52	13.10	35.69	54.35	111.04	0.758	2.0
2035	87.63	110.74	4.24	5.80	4.61	13.37	36.41	55.43	113.27	0.758	2.0
2036	89.38	112.95	4.33	5.93	4.69	13.64	37.14	56.54	115.52	0.758	2.0
2037	91.17	115.21	4.42	6.03	4.79	13.91	37.88	57.67	117.84	0.758	2.0
2038	92.99	117.51	4.51	6.14	4.88	14.19	38.63	58.83	120.20	0.758	2.0
2039	94.85	119.86	4.59	6.28	4.99	14.47	39.41	60.00	122.60	0.758	2.0
2040	96.75	122.26	4.68	6.41	5.09	14.76	40.20	61.20	125.05	0.758	2.0
2041	98.69	124.71	4.78	6.54	5.19	15.05	41.00	62.43	127.56	0.758	2.0
2042	100.66	127.20	4.87	6.67	5.29	15.35	41.82	63.68	130.10	0.758	2.0
2043	102.67	129.75	4.97	6.81	5.39	15.66	42.66	64.94	132.71	0.758	2.0
2044	104.72	132.34	5.07	6.93	5.51	15.98	43.51	66.24	135.36	0.758	2.0
2044+	2.0%	2.0%	2.0%	2.0%	2.0%	2.0%	2.0%	2.0%	2.0%	0.758	2.0

^{(1) 1 Mcf = 1 MMBtu.}

Reconciliation of Changes in Reserves

The following table sets forth the reconciliation of Birchcliff’s gross reserves at December 31, 2024 as set forth in the Deloitte Report, estimated using the 2024 Price Forecast, to Birchcliff’s gross reserves at December 31, 2023:

Factors	Light Crude Oil and Medium Crude Oil (Mbbls)		Conventional Natural Gas (MMcf)		Shale Gas (MMcf)		NGLs⁽⁸⁾ (Mbbls)		Oil Equivalent (Mboe)
GROSS TOTAL PROVED
Opening balance December 31, 2023	14,460		10,251		3,493,022		93,547		691,886
Extensions and Improved Recovery⁽¹⁾	0		0		58,875		2,287		12,099
Technical Revisions⁽²⁾	(1,724	)	2,244		(37,966	)	(2,022	)	(9,699	)
Discoveries⁽³⁾	0		0		0		0		0
Acquisitions⁽⁴⁾	0		0		18,193		1,633		4,665
Dispositions⁽⁵⁾	0		0		0		0		0
Economic Factors⁽⁶⁾	(12	)	(2,746	)	(15,923	)	(367	)	(3,491	)
Production⁽⁷⁾	(738	)	(840	)	(137,889	)	(4,211	)	(28,070	)
Closing balance December 31, 2024	11,987		8,909		3,378,312		90,866		667,390
GROSS TOTAL PROBABLE
Opening balance December 31, 2023	10,088		5,666		1,438,587		51,213		302,011
Extensions and Improved Recovery⁽¹⁾	0		0		9,320		1,602		3,155
Technical Revisions⁽²⁾	(1,003	)	(2,604	)	(33,104	)	(3,347	)	(10,301	)
Discoveries⁽³⁾	0		0		0		0		0
Acquisitions⁽⁴⁾	0		0		24,508		2,296		6,381
Dispositions⁽⁵⁾	0		0		0		0		0
Economic Factors⁽⁶⁾	(2	)	2,208		3,535		45		1,000
Production⁽⁷⁾	0		0		0		0		0
Closing balance December 31, 2024	9,083		5,270		1,442,846		51,811		302,246
GROSS TOTAL PROVED PLUS PROBABLE
Opening balance December 31, 2023	24,549		15,917		4,931,609		144,760		993,897
Extensions and Improved Recovery⁽¹⁾	0		0		68,195		3,888		15,254
Technical Revisions⁽²⁾	(2,727	)	(361	)	(71,069	)	(5,369	)	(20,000	)
Discoveries⁽³⁾	0		0		0		0		0
Acquisitions⁽⁴⁾	0		0		42,701		3,929		11,046
Dispositions⁽⁵⁾	0		0		0		0		0
Economic Factors⁽⁶⁾	(14	)	(538	)	(12,389	)	(322	)	(2,490	)
Production⁽⁷⁾	(738	)	(840	)	(137,889	)	(4,211	)	(28,070	)
Closing balance December 31, 2024	21,070		14,179		4,821,158		142,676		969,636

^{(1) Additions to volumes resulting from capital expenditures for: (i) step-out drilling in previously discovered reservoirs; (ii) infill drilling in previously discovered reservoirs that were not drilled as part of an enhanced recovery scheme; and (iii) the installation of improved recovery schemes.}

^{(2) Positive or negative volume revisions to an estimate resulting from new technical data or revised interpretations on previously assigned volumes, performance and operating costs. This category also includes revisions resulting from well locations combined or removed as part of an updated development plan.}

^{(3) Additions to volumes in reservoirs where no reserves were previously booked.}

^{(4) Positive additions to volume estimates because of purchasing interests in oil and gas properties.}

^{(5) Reductions in volume estimates because of selling all or a portion of an interest in oil and gas properties.}

^{(6) Changes to volumes resulting from different price forecasts, inflation rates and regulatory changes.}

^{(7) Reductions in the volume estimates due to actual production.}

^{(8) NGLs includes condensate.}

Key highlights include the following:

Extensions and Improved Recovery
- Reserves were added from 27 wells brought on production pursuant to the Corporation’s successful 2024 capital program. The 2024 program was focused in Birchcliff’s core areas in Pouce Coupe and Gordondale, converting proved and probable undeveloped reserves into PDP reserves.

Technical Revisions
- The technical revisions in all reserves categories for light crude oil and medium crude oil were primarily the result of: (i) higher gas-to-oil ratios for existing producing oil wells in the southeast area in Gordondale; and (ii) potential future drilling location adjustments based on offsetting well performance.
- The technical revisions in all reserves categories for conventional natural gas were primarily the result of existing well performance.
- The technical revisions in all reserves categories for shale gas were primarily the result of:

(i) an updated reserves forecast for existing wells based on historical performance, which included a reduction in the reserves attributable to 56 existing high-density producing wells that were drilled from 2019 to 2023. The Corporation does not expect that the technical revisions relating to these wells will negatively impact future reserves booked for other existing or future wells;

(ii) an updated full-field development plan, which included the combining or removal of multiple proved and probable potential future drilling locations, resulting in the removal of 10 proved undeveloped locations and 3 probable locations; and

(iii) an updated reserves forecast for various potential future drilling locations in the Lower Montney in Gordondale as a result of an increase in the reserves attributable to such future locations due to the continued outperformance of existing wells in the area.

The technical revisions in all reserves categories for NGLs were primarily the result of: (i) a reduction in shale gas volumes; and (ii) reduced NGLs recoveries at the Corporation’s owned and/or operated natural gas processing plants in Pouce Coupe and Gordondale. The reduced NGLs recoveries were partially offset by reduced natural gas shrinkage.

Acquisitions
- Changes were the result of various accretive acquisitions completed by Birchcliff in the Pouce Coupe and Gordondale areas in 2024.
Economic Factors
- The forecast prices for each product type were generally lower in the 2024 Price Forecast than the 2023 Price Forecast, which resulted in the economic limit at the end of a well’s life being achieved earlier and therefore a reduction of the reserves volumes in the total proved and total proved plus probable categories.

Future Development Costs

Future development costs (“FDC”) reflect Deloitte’s best estimate of what it will cost to bring the proved and proved plus probable reserves on production. Changes in forecast FDC occur annually as a result of development activities, acquisition and disposition activities and capital cost estimates. The following table sets forth development costs deducted in the estimation of Birchcliff’s future net revenue attributable to the reserves categories noted below, estimated using the 2024 Price Forecast:

Year	Proved ($000s)	Proved Plus Probable ($000s)
2025	198,395	215,960
2026	355,662	374,083
2027	424,921	455,059
2028	895,366	895,366
2029	644,546	645,166
Thereafter	849,599	2,299,368
Total undiscounted	3,368,489	4,885,002

FDC for proved reserves on an FD&A basis decreased to $3.37 billion at December 31, 2024 from $3.46 billion at December 31, 2023. FDC for proved plus probable reserves on an FD&A basis decreased to $4.89 billion at December 31, 2024 from $4.97 billion at December 31, 2023. The FDC to drill, case, complete, equip and tie-in for future locations in Birchcliff’s Pouce Coupe and Gordondale areas ($5.9 million per well) did not change from December 31, 2023 to December 31, 2024.

The FDC for both proved and proved plus probable reserves are primarily the capital costs required to drill, case, complete, equip and tie-in the net undeveloped locations. The estimates of FDC on a proved and proved plus probable basis also include approximately $320 million (unescalated) for the continued expansion of the Pouce Coupe Gas Plant from the existing 340 MMcf/d to 660 MMcf/d of total throughput. The FDC for the expansion of the Pouce Coupe Gas Plant also include the costs of the related gathering pipelines and maintenance capital.

F&D and FD&A Costs

The following table sets forth Birchcliff’s F&D and FD&A costs for its PDP, total proved and total proved plus probable reserves for the three previous financial years, including FDC:

	2024⁽²⁾	2023	2022	3-Year Average
F&D costs ($/boe)⁽¹⁾
Proved Developed Producing	11.52⁽³⁾	13.16	10.24	11.43
Total Proved	n/a⁽⁴⁾	16.02	82.02	29.43
Total Proved Plus Probable	n/a⁽⁴⁾	24.90	n/a⁽⁵⁾	110.72
FD&A costs ($/boe)⁽¹⁾
Proved Developed Producing	11.42⁽⁶⁾	13.06	10.25	11.38
Total Proved	53.86⁽⁷⁾	13.79	78.96	23.24
Total Proved Plus Probable	50.39⁽⁸⁾	20.97	n/a⁽⁵⁾	49.27

^{(1) See “Advisories – Oil and Gas Metrics” for a description of the methodology used to calculate F&D and FD&A costs.}

^{(2) Birchcliff’s F&D and FD&A capital expenditures were $273.1 million and $281.0 million, respectively, in 2024. Birchcliff’s F&D and FD&A capital expenditures included $18.8 million spent on strategics priorities in the Corporation’s Elmworth area for which there was no production or reserves assigned at year-end 2024.}

^{(3) Birchcliff added 23.7 MMboe of PDP reserves in 2024, after adding back 2024 actual production of 28.1 MMboe and including all other PDP reserves adjustments in 2024, excluding acquisitions and dispositions.}

^{(4) Birchcliff’s proved and proved plus probable reserves decreased in 2024, after adding back 2024 actual production of 28.1 MMboe. As a result of the year-over-year decrease in proved and proved plus probable reserves, the calculation for F&D costs for these reserves categories was not applicable in 2024.}

^{(5) Birchcliff’s proved plus probable reserves decreased in 2022, after adding back 2022 actual production of 28.1 MMboe. As a result of the year-over-year decrease in proved plus probable reserves, the calculations for F&D and FD&A costs for this reserves category were not applicable in 2022.}

^{(6) Birchcliff added 24.6 MMboe of PDP reserves in 2024, after adding back 2024 actual production of 28.1 MMboe and including all other PDP reserves adjustments in 2024.}

^{(7) Includes the 2024 decrease in FDC from 2023 of $88.5 million on a proved basis. Birchcliff added 3.6 MMboe of proved reserves in 2024, after adding back 2024 actual production of 28.1 MMboe and including all other proved reserves adjustments in 2024.}

^{(8) Includes the 2024 decrease in FDC from 2023 of $89.0 million on a proved plus probable basis. Birchcliff added 3.8 MMboe of proved plus probable reserves in 2024, after adding back 2024 actual production of 28.1 MMboe and including all other proved plus probable reserves adjustments in 2024.}

Recycle Ratios

The following table sets forth Birchcliff’s F&D and FD&A operating netback recycle ratios for its PDP, total proved and total proved plus probable reserves for the three previous financial years, including FDC:

	2024	2023	2022	3-Year Average
F&D operating netback recycle ratio⁽¹⁾⁽²⁾
Proved Developed Producing	1.0x	1.1x	3.2x	1.7x
Total Proved	n/a⁽³⁾	0.9x	0.4x	0.7x
Total Proved Plus Probable	n/a⁽³⁾	0.6x	n/a⁽⁴⁾	0.2x
FD&A operating netback recycle ratio⁽¹⁾⁽²⁾
Proved Developed Producing	1.0x	1.1x	3.2x	1.7x
Total Proved	0.2x	1.1x	0.4x	0.8x
Total Proved Plus Probable	0.2x	0.7x	n/a⁽⁴⁾	0.4x

^{(1) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.}

^{(2) Birchcliff’s operating netback was $11.02/boe in 2024 as compared to $14.74/boe in 2023 and $32.85/boe in 2022. Operating netback is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.}

^{(3) As a result of the year-over-year decrease in proved and proved plus probable reserves, the calculation for F&D operating netback recycle ratio for these reserves categories was not applicable in 2024.}

^{(4) As a result of the year-over-year decrease in proved plus probable reserves, the calculations for F&D and FD&A operating netback recycle ratio for this reserves category were not applicable in 2022.}

Reserves Replacement

The following table sets forth Birchcliff’s 2024 reserves replacement on an F&D and FD&A basis for its PDP, total proved and total proved plus probable reserves:

Reserves Category	2024 F&D Reserves Replacement⁽¹⁾		2024 FD&A Reserves Replacement⁽¹⁾
Proved Developed Producing	84	%	88	%
Total Proved	n/a⁽²⁾		13	%
Total Proved Plus Probable	n/a⁽²⁾		14	%

^{(1) See “Advisories – Oil and Gas Metrics” for a description of the methodology used to calculate reserves replacement.}

^{(2) As a result of the 1.1 MMboe and 7.2 MMboe decrease in Birchcliff’s proved and proved plus probable reserves, respectively, in 2024, after adding back 2024 actual production of 28.1 MMboe, the calculation for F&D reserves replacement for theses reserves categories was not applicable in 2024.}

Reserves Life Index

The following table sets forth Birchcliff’s reserves life index for its PDP, total proved and total proved plus probable reserves at December 31, 2024:

Reserves Category	Reserves Life Index⁽¹⁾
Proved Developed Producing	7.7 years
Total Proved	23.6 years
Total Proved Plus Probable	34.3 years

^{(1) See “Advisories – Oil and Gas Metrics” for a description of the methodology used to calculate reserves life index.}

ABBREVIATIONS

AECO	benchmark price for natural gas determined at the AECO ‘C’ hub in southeast Alberta
bbl	barrel
bbls	barrels
bbls/d	barrels per day
BD/UM	Basal Doig/Upper Montney
boe	barrel of oil equivalent
boe/d	barrel of oil equivalent per day
condensate	pentanes plus (C5+)
F&D	finding and development
FD&A	finding, development and acquisition
G&A	general and administrative
GAAP	generally accepted accounting principles for Canadian public companies, which are currently International Financial Reporting Standards as issued by the International Accounting Standards Board
GJ/d	gigajoules per day
HH	Henry Hub
IP	initial production
LNG	liquefied natural gas
Mbbls	thousand barrels
Mboe	thousand barrels of oil equivalent
Mcf	thousand cubic feet
Mcf/d	thousand cubic feet per day
MMboe	million barrels of oil equivalent
MMBtu	million British thermal units
MMBtu/d	million British thermal units per day
MMcf	million cubic feet
MMcf/d	million cubic feet per day
NGLs	natural gas liquids consisting of ethane (C2), propane (C3) and butane (C4) and, except where otherwise noted, excludes condensate
NPV	net present value
NYMEX	New York Mercantile Exchange
OPEC	Organization of the Petroleum Exporting Countries
PDP	proved developed producing
Q	quarter
TSX	Toronto Stock Exchange
WTI	West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma, for crude oil of standard grade
000s	thousands
$000s	thousands of dollars

NON-GAAP AND OTHER FINANCIAL MEASURES

This press release uses various “non-GAAP financial measures”, “non-GAAP ratios” and “capital management measures” (as such terms are defined in NI 52-112), which are described in further detail below.

Non-GAAP Financial Measures

NI 52-112 defines a non-GAAP financial measure as a financial measure that: (i) depicts the historical or expected future financial performance, financial position or cash flow of an entity; (ii) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity; (iii) is not disclosed in the financial statements of the entity; and (iv) is not a ratio, fraction, percentage or similar representation. The non-GAAP financial measures used in this press release are not standardized financial measures under GAAP and might not be comparable to similar measures presented by other companies. Investors are cautioned that non-GAAP financial measures should not be construed as alternatives to or more meaningful than the most directly comparable GAAP financial measures as indicators of Birchcliff’s performance. Set forth below is a description of the non-GAAP financial measures used in this press release.

Adjusted Funds Flow and Free Funds Flow

Birchcliff defines “adjusted funds flow” as cash flow from operating activities before the effects of decommissioning expenditures, retirement benefit payments and changes in non-cash operating working capital. Birchcliff eliminates settlements of decommissioning expenditures from cash flow from operating activities as the amounts can be discretionary and may vary from period to period depending on its capital programs and the maturity of its operating areas. The settlement of decommissioning expenditures is managed with Birchcliff’s capital budgeting process which considers available adjusted funds flow. Birchcliff eliminates retirement benefit payments from cash flow from operating activities as such payments reflect costs for past service and contributions made by eligible executives under the Corporation’s post-employment benefit plan, which are not indicative of the current period. Changes in non-cash operating working capital are eliminated in the determination of adjusted funds flow as the timing of collection and payment are variable and by excluding them from the calculation, the Corporation believes that it is able to provide a more meaningful measure of its operations and ability to generate cash on a continuing basis. Management believes that adjusted funds flow assists management and investors in assessing Birchcliff’s financial performance after deducting all operating and corporate cash costs, as well as its ability to generate the cash necessary to fund sustaining and/or growth capital expenditures, repay debt, settle decommissioning obligations, buy back common shares and pay dividends.

Birchcliff defines “free funds flow” as adjusted funds flow less F&D capital expenditures. Management believes that free funds flow assists management and investors in assessing Birchcliff’s ability to generate shareholder value and returns through a number of initiatives, including but not limited to, debt repayment, common share buybacks, the payment of common share dividends, acquisitions and other opportunities that would complement or otherwise improve the Corporation’s business and enhance long-term shareholder value.

The most directly comparable GAAP financial measure to adjusted funds flow and free funds flow is cash flow from operating activities. The following table provides a reconciliation of cash flow from operating activities to adjusted funds flow and free funds flow for the periods indicated:

	Three months ended December 31,				Twelve months ended December 31,
($000s)	2024		2023		2024		2023
Cash flow from operating activities	45,641		79,006		203,710		320,529
Change in non-cash operating working capital	25,278		(6,248	)	17,269		(19,477	)
Decommissioning expenditures	919		1,457		1,964		3,775
Retirement benefit payments	–		2,000		13,851		2,000
Adjusted funds flow	71,838		76,215		236,794		306,827
F&D capital expenditures	(58,310	)	(58,166	)	(273,084	)	(304,637	)
Free funds flow	13,528		18,049		(36,290	)	2,190

Transportation and Other Expense

Birchcliff defines “transportation and other expense” as transportation expense plus marketing purchases less marketing revenue. Birchcliff may enter into certain marketing purchase and sales arrangements with the objective of reducing any unused transportation or fractionation fees associated with its take-or-pay commitments and/or increasing the value of its production through value-added downstream initiatives. Management believes that transportation and other expense assists management and investors in assessing Birchcliff’s total cost structure related to transportation and marketing activities.

The most directly comparable GAAP financial measure to transportation and other expense is transportation expense. The following table provides a reconciliation of transportation expense to transportation and other expense for the periods indicated:

	Three months ended December 31,				Twelve months ended December 31,
($000s)	2024		2023		2024		2023
Transportation expense	36,722		38,509		149,534		152,828
Marketing purchases	14,905		8,928		51,496		34,772
Marketing revenue	(14,083	)	(8,532	)	(54,069	)	(30,521	)
Transportation and other expense	37,544		38,905		146,961		157,079

Operating Netback

Birchcliff defines “operating netback” as petroleum and natural gas revenue less royalty expense, operating expense and transportation and other expense. Management believes that operating netback assists management and investors in assessing Birchcliff’s operating profits after deducting the cash costs that are directly associated with the sale of its production, which can then be used to pay other corporate cash costs or satisfy other obligations.

The following table provides a breakdown of Birchcliff’s operating netback for the periods indicated:

	Three months ended				Twelve months ended
	December 31,				December 31,
($000s)	2024		2023		2024		2023		2022
Petroleum and natural gas revenue	153,741		183,295		586,856		740,359		1,340,180
Royalty expense	(9,033	)	(19,400	)	(39,608	)	(70,257	)	(161,226	)
Operating expense	(20,758	)	(26,808	)	(90,890	)	(105,809	)	(101,581	)
Transportation and other expense	(37,544	)	(38,905	)	(146,961	)	(157,079	)	(154,924	)
Operating netback	86,406		98,182		309,397		407,214		922,449

FD&A and Total Capital Expenditures

Birchcliff defines “FD&A capital expenditures” as exploration and development expenditures, less dispositions, plus acquisitions (if any). Birchcliff defines “total capital expenditures” as FD&A capital expenditures plus administrative assets. Management believes that FD&A capital expenditures and total capital expenditures assist management and investors in assessing Birchcliff’s overall capital cost structure associated with its petroleum and natural gas activities.

The most directly comparable GAAP financial measure to FD&A capital expenditures and total capital expenditures is exploration and development expenditures. The following table provides a reconciliation of exploration and development expenditures to FD&A capital expenditures and total capital expenditures for the periods indicated:

	Three months ended				Twelve months ended
	December 31,				December 31,
($000s)	2024		2023		2024		2023
Exploration and development expenditures⁽¹⁾	58,310		58,166		273,084		304,637
Acquisitions	8,076		2		8,169		190
Dispositions	(100	)	(10	)	(258	)	(87	)
FD&A capital expenditures	66,286		58,158		280,995		304,740
Administrative assets	387		1,383		1,750		3,176
Total capital expenditures	66,673		59,541		282,745		307,916

^{(1) Disclosed as F&D capital expenditures elsewhere in this press release. See “Advisories – F&D Capital Expenditures”.}

Net Asset Value

Birchcliff defines “net asset value” as property, plant and equipment, plus reserves premium adjustment (less reserves discount adjustment) for its PDP, total proved and total proved plus probable reserves (as the case may be), less total debt and plus the value of unexercised in-the-money stock options and performance warrants outstanding at the end of the period. Management believes that net asset value assists management and investors in assessing the long-term fair value of Birchcliff’s underlying reserves assets after settling its outstanding financial obligations.

The most directly comparable GAAP financial measure to net asset value is property, plant and equipment. The following table provides a reconciliation of property, plant and equipment to net asset value for the periods indicated:

	Proved Developed Producing				Total Proved				Total Proved Plus Probable
As at December 31, ($000s)	2024		2023		2024		2023		2024		2023
Property, plant and equipment	3,218,506		3,055,958		3,218,506		3,055,958		3,218,506		3,055,958
Reserves premium (discount) adjustment⁽¹⁾	(940,756	)	(435,894	)	1,140,662		2,349,659		2,345,325		3,779,459
Total debt	(535,557	)	(382,306	)	(535,557	)	(382,306	)	(535,557	)	(382,306	)
Unexercised securities	34,961		16,717		34,961		16,717		34,961		16,717
Net asset value	1,777,154		2,254,475		3,858,572		5,040,028		5,063,235		6,469,828

^{(1) Represents the premium or discount, as the case may be, between the net present value of future net revenue (before income taxes, discounted at 10%) of Birchcliff’s PDP, total proved and total proved plus probable reserves, as the case may be, and the property, plant and equipment disclosed on the financial statements.}

Effective Sales – Total Corporate, Total Natural Gas, AECO Market and NYMEX HH Market

Birchcliff defines “effective sales” in the AECO market and NYMEX HH market as the sales amount received from the production of natural gas that is effectively attributed to the AECO and NYMEX HH market pricing, respectively, and does not consider the physical sales delivery point in each case. Effective sales in the NYMEX HH market includes realized gains and losses on financial instruments and excludes the notional fixed basis costs associated with the underlying financial contract in the period. Birchcliff defines “effective total natural gas sales” as the aggregate of the effective sales amount received in each natural gas market. Birchcliff defines “effective total corporate sales” as the aggregate of the effective total natural gas sales and the sales amount received from the production of light oil, condensate and NGLs. Management believes that disclosing the effective sales for each natural gas market assists management and investors in assessing Birchcliff’s natural gas diversification and commodity price exposure to each market.

The most directly comparable GAAP financial measure to effective total natural gas sales and effective total corporate sales is natural gas sales. The following table provides a reconciliation of natural gas sales to effective total natural gas sales and effective total corporate sales for the periods indicated:

	Three months ended
	December 31,
($000s)	2024	2023
Natural gas sales	79,615	99,957
Realized gain (loss) on financial instruments	12,022	(2,583	)
Notional fixed basis costs⁽¹⁾	21,490	20,802
Effective total natural gas sales	113,127	118,176
Light oil sales	17,450	15,180
Condensate sales	37,985	49,135
NGLs sales	18,679	18,977
Effective total corporate sales	187,241	201,468

^{(1) Reflects the aggregate notional fixed basis cost associated with Birchcliff’s financial and physical NYMEX HH/AECO 7A basis swap contracts in the period.}

Non-GAAP Ratios

NI 52-112 defines a non-GAAP ratio as a financial measure that: (i) is in the form of a ratio, fraction, percentage or similar representation; (ii) has a non-GAAP financial measure as one or more of its components; and (iii) is not disclosed in the financial statements of the entity. The non-GAAP ratios used in this press release are not standardized financial measures under GAAP and might not be comparable to similar measures presented by other companies. Set forth below is a description of the non-GAAP ratios used in this press release.

Adjusted Funds Flow Per Boe and Adjusted Funds Flow Per Basic Common Share

Birchcliff calculates “adjusted funds flow per boe” as aggregate adjusted funds flow in the period divided by the production (boe) in the period. Management believes that adjusted funds flow per boe assists management and investors in assessing Birchcliff’s financial profitability and sustainability on a cash basis by isolating the impact of production volumes to better analyze its performance against prior periods on a comparable basis.

Birchcliff calculates “adjusted funds flow per basic common share” as aggregate adjusted funds flow in the period divided by the weighted average basic common shares outstanding at the end of the period. Management believes that adjusted funds flow per basic common share assists management and investors in assessing Birchcliff’s financial strength on a per common share basis.

Free Funds Flow Per Basic Common Share

Birchcliff calculates “free funds flow per basic common share” as aggregate free funds flow in the period divided by the weighted average basic common shares outstanding at the end of the period. Management believes that free funds flow per basic common share assists management and investors in assessing Birchcliff’s financial strength and its ability to deliver shareholder returns on a per common share basis.

Transportation and Other Expense Per Boe

Birchcliff calculates “transportation and other expense per boe” as aggregate transportation and other expense in the period divided by the production (boe) in the period. Management believes that transportation and other expense per boe assists management and investors in assessing Birchcliff’s cost structure as it relates to its transportation and marketing activities by isolating the impact of production volumes to better analyze its performance against prior periods on a comparable basis.

Operating Netback Per Boe

Birchcliff calculates “operating netback per boe” as aggregate operating netback in the period divided by the production (boe) in the period. Operating netback per boe is a key industry performance indicator and one that provides investors with information that is commonly presented by other oil and natural gas producers. Management believes that operating netback per boe assists management and investors in assessing Birchcliff’s operating profitability and sustainability by isolating the impact of production volumes to better analyze its performance against prior periods on a comparable basis.

Operating Netback Recycle Ratio

Birchcliff calculates “operating netback recycle ratio” as operating netback per boe in the period divided by F&D or FD&A costs, as the case may be, for its PDP, proved and proved plus probable reserves, as the case may be, in the period. Management believes that operating netback recycle ratio assists management and investors in assessing Birchcliff’s ability to profitably find and develop its PDP, proved and proved plus probable reserves.

Net Asset Value Per Common Share

Birchcliff calculates “net asset value per common share” as the net asset value in each category of reserves divided by the aggregate of the basic common shares outstanding and in-the-money dilutive common shares attributable to stock options and performance warrants outstanding at the end of the period. Management believes that net asset value per common share assists management and investors in comparing Birchcliff’s common share trading price to the underlying fair market value of its net assets on a per common share basis.

Effective Average Realized Sales Price – Total Corporate, Total Natural Gas, AECO Market and NYMEX HH Market

Birchcliff calculates “effective average realized sales price” as effective sales, in each of total corporate, total natural gas, AECO market and NYMEX HH market, as the case may be, divided by the effective production in each of the markets during the period. Management believes that disclosing the effective average realized sales price for each natural gas market assists management and investors in comparing Birchcliff’s commodity price realizations in each natural gas market on a per unit basis.

Capital Management Measures

NI 52-112 defines a capital management measure as a financial measure that: (i) is intended to enable an individual to evaluate an entity’s objectives, policies and processes for managing the entity’s capital; (ii) is not a component of a line item disclosed in the primary financial statements of the entity; (iii) is disclosed in the notes to the financial statements of the entity; and (iv) is not disclosed in the primary financial statements of the entity. Set forth below is a description of the capital management measure used in this press release.

Total Debt

Birchcliff calculates “total debt” at the end of the period as the amount outstanding under the Corporation’s Credit Facilities plus working capital deficit (less working capital surplus) plus the fair value of the current asset portion of financial instruments less the fair value of the current liability portion of financial instruments and less the current portion of other liabilities discounted to the end of the period. The current portion of other liabilities has been excluded from total debt as these amounts have not been incurred and reflect future commitments in the normal course of operations. Management believes that total debt assists management and investors in assessing Birchcliff’s overall liquidity and financial position at the end of the period. The following table provides a reconciliation of the amount outstanding under the Credit Facilities, as determined in accordance with GAAP, to total debt for the periods indicated:

As at December 31, ($000s)	2024		2023
Revolving term credit facilities	566,857		372,097
Working capital deficit (surplus)⁽¹⁾	(88,953	)	10,522
Fair value of financial instruments – asset⁽²⁾	71,038		3,588
Fair value of financial instruments – liability⁽²⁾	–		(1,394	)
Other liabilities⁽²⁾	(13,385	)	(2,507	)
Total debt	535,557		382,306

^{(1) Current liabilities less current assets.}

^{(2) Reflects the current portion only.}

PRESENTATION OF OIL AND GAS RESERVES

Deloitte prepared the Deloitte Report and the 2023 Deloitte Report. In addition, Deloitte prepared a reserves evaluation in respect of Birchcliff’s oil and natural gas properties effective December 31, 2022. Such evaluations were prepared in accordance with the standards contained in NI 51-101 and the COGE Handbook that were in effect at the relevant time. Reserves estimates stated herein are extracted from the relevant evaluation.

There are numerous uncertainties inherent in estimating quantities of oil, natural gas and NGLs (including condensate) reserves and the future net revenue attributed to such reserves. The reserves and associated future net revenue information set forth in this press release are estimates only. In general, estimates of economically recoverable oil, natural gas and NGLs reserves and the future net revenue therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserves recovery, the timing and amount of capital expenditures, marketability of oil, natural gas and NGLs, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially from actual results. For these reasons, estimates of the economically recoverable oil, natural gas and NGLs reserves attributable to any particular group of properties, the classification of such reserves based on risk of recovery and estimates of future net revenue associated with reserves prepared by different engineers, or by the same engineer at different times, may vary. Birchcliff’s actual production, revenue, taxes and development and operating expenditures with respect to its reserves will vary from estimates thereof and such variations could be material.

It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to the Corporation’s reserves estimated by the Corporation’s independent qualified reserves evaluator represent the fair market value of those reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. Actual oil, natural gas and NGLs reserves may be greater than or less than the estimates provided herein and variances could be material.

In this press release, unless otherwise stated all references to “reserves” are to Birchcliff’s gross company reserves, meaning Birchcliff’s working interest (operating or non-operating) share before the deduction of royalties and without including any royalty interests of Birchcliff.

The information set forth in this press release relating to the reserves, future net revenue and future development costs of Birchcliff constitutes forward-looking statements and is subject to certain risks and uncertainties. See “Advisories – Forward-Looking Statements”.

Certain terms used herein but not defined are defined in NI 51-101, CSA Staff Notice 51-324 – Revised Glossary to NI 51-101 Standards of Disclosure for Oil and Gas Activities (“CSA Staff Notice 51-324”) and/or the COGE Handbook and, unless the context otherwise requires, shall have the same meanings herein as in NI 51-101, CSA Staff Notice 51-324 and the COGE Handbook, as the case may be.

ADVISORIES

Unaudited Information

All financial information contained in this press release for the fourth quarter and year ended December 31, 2024 is based on unaudited estimated financial information which has been disclosed in accordance with GAAP. These estimated results have not been reviewed by the Corporation’s auditor and are subject to change upon completion of the audited financial statements for the year ended December 31, 2024, and changes could be material. Birchcliff anticipates filing its audited financial statements and related management’s discussion and analysis for the year ended December 31, 2024 on SEDAR+ on March 12, 2025.

Currency

Unless otherwise indicated, all dollar amounts are expressed in Canadian dollars, all references to “$” and “CDN$” are to Canadian dollars and all references to “US$” are to United States dollars.

Boe Conversions

Boe amounts have been calculated by using the conversion ratio of 6 Mcf of natural gas to 1 bbl of oil. Boe amounts may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

MMBtu Pricing Conversions

$1.00 per MMBtu equals $1.00 per Mcf based on a standard heat value Mcf.

Oil and Gas Metrics

This press release contains metrics commonly used in the oil and natural gas industry, including F&D costs, FD&A costs, reserves replacement, reserves life index, capital efficiency, operating netback, operating netback recycle ratio, net asset value and net asset value per common share, which have been determined by Birchcliff as set out below. These oil and gas metrics do not have any standardized meanings or standard methods of calculation and therefore may not be comparable to similar measures presented by other companies. As such, they should not be used to make comparisons. Management uses these oil and gas metrics for its own performance measurements and to provide investors with measures to compare Birchcliff’s performance over time; however, such measures are not reliable indicators of Birchcliff’s future performance, which may not compare to Birchcliff’s performance in previous periods, and therefore should not be unduly relied upon.

With respect to F&D and FD&A costs:
- F&D costs for PDP, proved or proved plus probable reserves, as the case may be, are calculated by taking the sum of: (i) exploration and development expenditures (F&D capital expenditures) incurred in the period; and (ii) where appropriate, the change during the period in FDC for the reserves category; divided by the applicable additions to the reserves category after adding back production in the period. F&D costs exclude the effects of acquisitions and dispositions.
- FD&A costs for PDP, proved or proved plus probable reserves, as the case may be, are calculated by taking the sum of: (i) FD&A capital expenditures incurred in the period; and (ii) where appropriate, the change during the period in FDC for the reserves category; divided by the applicable additions to the reserves category after adding back production in the period.
- In determining the F&D and FD&A costs for PDP, proved or proved plus probable reserves, as the case may be, the estimated reserves additions during the period and the change during the period in estimated FDC are based upon the evaluations of Birchcliff’s reserves prepared by its independent qualified reserves evaluator effective December 31 of such year.
- The aggregate of the F&D and FD&A capital expenditures incurred in the most recent financial year and the change during that year in estimated FDC generally will not reflect total F&D and FD&A costs related to reserves additions for that year.
- F&D and FD&A costs may be used as a measure of the Corporation’s efficiency with respect to finding and developing its reserves.
Reserves replacement on an F&D basis is calculated by dividing PDP, proved or proved plus probable reserves additions, as the case may be, before production by the total annual production in the applicable period. Reserves replacement on an FD&A basis is calculated in the same manner as F&D reserves replacement, but include the effects of acquisitions and dispositions. Reserves replacement may be used as a measure of the Corporation’s sustainability and its ability to replace its PDP, proved or proved plus probable reserves, as the case may be.
Reserves life index is calculated by dividing PDP, proved or proved plus probable reserves, as the case may be, estimated by Deloitte at December 31, 2024, by 77,500 boe/d (which represents the mid-point of Birchcliff’s annual average production guidance range for 2025) determined on an annualized basis. Reserves life index may be used as a measure of the Corporation’s sustainability.
Capital efficiency is calculated on an average well basis as drill, case, complete and equip capital expenditures divided by the IP365 boe/d for the applicable well(s). Birchcliff defines “IP365 boe/d” as the estimated average daily field production in the first 365 days a well is on-stream. Where field production data is not available for a well, Birchcliff uses the forecasted production data for that well. Capital efficiency is determined at the individual well level and then aggregated and averaged for the year. Management believes that capital efficiency assists management and investors in assessing Birchcliff’s asset performance, execution and ability to generate shareholder value.
For information regarding operating netback, operating netback recycle ratio, net asset value and net asset value per common share and how such metrics are calculated, see “Non-GAAP and Other Financial Measures”.

Production

With respect to the disclosure of Birchcliff’s production contained in this press release: (i) references to “light oil” mean “light crude oil and medium crude oil” as such term is defined in NI 51-101; (ii) references to “liquids” mean “light crude oil and medium crude oil” and “natural gas liquids” (including condensate) as such terms are defined in NI 51-101; and (iii) references to “natural gas” mean “shale gas”, which also includes an immaterial amount of “conventional natural gas”, as such terms are defined in NI 51-101. In addition, NI 51-101 includes condensate within the product type of natural gas liquids. In certain cases, Birchcliff has disclosed condensate separately from other natural gas liquids as the price of condensate as compared to other natural gas liquids is currently significantly higher and Birchcliff believes presenting the two commodities separately provides a more accurate description of its operations and results therefrom.

With respect to the disclosure of Birchcliff’s production contained in this press release, all production volumes have been disclosed on a “gross” basis as such term is defined in NI 51-101, meaning Birchcliff’s working interest (operating or non-operating) share before the deduction of royalties and without including any royalty interests of Birchcliff.

F&D Capital Expenditures

Unless otherwise stated, references in this press release to “F&D capital expenditures” denotes exploration and development expenditures as disclosed in the Corporation’s financial statements in accordance with GAAP, and is primarily comprised of capital for land, seismic, workovers, drilling and completions, well equipment and facilities and capitalized G&A costs and excludes any acquisitions, dispositions, administrative assets and the capitalized portion of cash incentive payments that have not been approved by the Board. Management believes that F&D capital expenditures assists management and investors in assessing Birchcliff’s capital cost outlay associated with its exploration and development activities for the purposes of finding and developing its reserves.

Forward-Looking Statements

Certain statements contained in this press release constitute forward‐looking statements and forward-looking information (collectively referred to as “forward‐looking statements”) within the meaning of applicable Canadian securities laws. The forward-looking statements contained in this press release relate to future events or Birchcliff’s future plans, strategy, operations, performance or financial position and are based on Birchcliff’s current expectations, estimates, projections, beliefs and assumptions. Such forward-looking statements have been made by Birchcliff in light of the information available to it at the time the statements were made and reflect its experience and perception of historical trends. All statements and information other than historical fact may be forward‐looking statements. Such forward‐looking statements are often, but not always, identified by the use of words such as “seek”, “plan”, “focus”, “future”, “outlook”, “position”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “forecast”, “guidance”, “potential”, “proposed”, “predict”, “budget”, “continue”, “targeting”, “may”, “will”, “could”, “might”, “should”, “would”, “on track”, “maintain”, “deliver” and other similar words and expressions.

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward‐looking statements. Accordingly, readers are cautioned not to place undue reliance on such forward-looking statements. Although Birchcliff believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct and Birchcliff makes no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking statements.

In particular, this press release contains forward‐looking statements relating to:

Birchcliff’s plans and other aspects of its anticipated future financial performance, results, operations, focus, objectives, strategies, opportunities, priorities and goals, including: Birchcliff’s belief that there is significant intrinsic shareholder value embedded in Birchcliff’s asset base that is not reflected in its current share price, as demonstrated by its PDP reserves net asset value per common share of $6.35 and $13.79 and $18.09 per share for its proved and proved plus probable reserves, respectively; that Birchcliff’s Elmworth asset provides Birchcliff with significant inventory and a large potential future development area; that Birchcliff’s strategy for 2025 builds off of the operational momentum from 2024, maintaining the Corporation’s focus on capital efficiency improvements and further driving down costs; that the Corporation’s 2025 capital program has been designed to ensure that its capital is strategically deployed throughout the year, providing it with the flexibility to adjust its capital spending if necessary in response to the commodity price volatility expected during 2025, including as a result of the potential for U.S. and Canadian tariffs and the start-up of LNG Canada; that the unutilized credit capacity under its Credit Facilities provides Birchcliff with significant financial flexibility and available capital resources; that Birchcliff believes its ongoing strategy of maintaining significant natural gas market diversification for 2025 will continue to protect the Corporation from volatility in the North American natural gas pricing environment, including as it relates to potential tariffs; and estimates of Birchcliff’s 2025 market diversification (including that approximately 41% of Birchcliff’s natural gas production is physically delivered to the Dawn trading hub in Ontario and that Birchcliff has U.S. denominated financial contracts that expose approximately 35% of its natural gas production to NYMEX HH pricing on a financial basis);
the information set forth under the heading “Update on 2025 Capital Program” and elsewhere in this press release regarding Birchcliff’s 2025 capital program and its exploration, production and development activities and the timing thereof, including: estimates of the Corporation’s 2025 F&D capital expenditures; that the wells in Birchcliff’s 2025 capital program are expected to yield strong production, using the Corporation’s latest field development practices and wellbore design, which incorporates longer lateral lengths, reduced stage spacing and increased proppant loading where appropriate; that the land retention well drilled and completed by the Corporation in Elmworth is not currently planned to be tied in; the targeted product types; and the expected timing for wells to be drilled, completed and brought on production;
statements regarding U.S. and Canadian tariffs, including that the Corporation believes that Canada’s over-reliance on exporting its energy into the U.S. must be addressed through the reduction of red tape and government interference in the construction of critical infrastructure such as oil and gas pipelines to the east and west coasts of Canada, LNG terminals on each coast and an increase in refining capacity within Canada, in order to diversify Canada’s energy export market; and that the Corporation continues to actively monitor this situation;
the information set forth under the heading “2024 Year-End Reserves” and elsewhere in this press release regarding the Corporation’s reserves, including: estimates of reserves; estimates of the net present values of future net revenue associated with Birchcliff’s reserves; forecasts of prices, inflation and exchange rates; FDC; reserves life index; and that the Corporation does not expect that the technical revisions relating to the 56 high-density wells drilled from 2019 to 2023 will negatively impact future reserves booked for other existing or future wells;
the performance and other characteristics of Birchcliff’s oil and natural gas properties and expected results from its assets, including statements regarding the potential or prospectivity of Birchcliff’s properties; and
that Birchcliff anticipates filing its annual information form and audited financial statements and related management’s discussion and analysis for the year ended December 31, 2024 on March 12, 2025.

Information relating to reserves is forward-looking as it involves the implied assessment, based on certain estimates and assumptions, that the reserves exist in the quantities predicted or estimated and that the reserves can profitably be produced in the future. See “Presentation of Oil and Gas Reserves”.

With respect to the forward-looking statements contained in this press release, assumptions have been made regarding, among other things: prevailing and future commodity prices and differentials, exchange rates, interest rates, inflation rates, royalty rates and tax rates; the state of the economy, financial markets and the exploration, development and production business; the political environment in which Birchcliff operates; the regulatory framework regarding royalties, taxes, environmental, climate change and other laws; the Corporation’s ability to comply with existing and future laws; future cash flow, debt and dividend levels; future operating, transportation, G&A and other expenses; Birchcliff’s ability to access capital and obtain financing on acceptable terms; the timing and amount of capital expenditures and the sources of funding for capital expenditures and other activities; the sufficiency of budgeted capital expenditures to carry out planned operations; the successful and timely implementation of capital projects and the timing, location and extent of future drilling and other operations; results of operations; Birchcliff’s ability to continue to develop its assets and obtain the anticipated benefits therefrom; the performance of existing and future wells; reserves volumes and Birchcliff’s ability to replace and expand reserves through acquisition, development or exploration; the impact of competition on Birchcliff; the availability of, demand for and cost of labour, services and materials; the approval of the Board of future dividends; the ability to obtain any necessary regulatory or other approvals in a timely manner; the satisfaction by third parties of their obligations to Birchcliff; the ability of Birchcliff to secure adequate processing and transportation for its products; Birchcliff’s ability to successfully market natural gas and liquids; the results of the Corporation’s risk management and market diversification activities; and Birchcliff’s natural gas market exposure. In addition to the foregoing assumptions, Birchcliff has made the following assumptions with respect to certain forward-looking statements contained in this press release:

Birchcliff’s forecast of F&D capital expenditures assumes that the Corporation’s 2025 capital program will be carried out as currently contemplated and excludes any potential acquisitions, dispositions and the capitalized portion of cash incentive payments that have not been approved by the Board. The amount and allocation of capital expenditures for exploration and development activities by area and the number and types of wells to be drilled and brought on production is dependent upon results achieved and is subject to review and modification by management on an ongoing basis throughout the year. Actual spending may vary due to a variety of factors, including commodity prices, economic conditions, results of operations and costs of labour, services and materials.
With respect to estimates of reserves volumes and the net present values of future net revenue associated with Birchcliff’s reserves, the key assumption is the validity of the data used by Deloitte in the Deloitte Report.
With respect to statements regarding future wells to be drilled or brought on production, such statements assume: the continuing validity of the geological and other technical interpretations performed by Birchcliff’s technical staff, which indicate that commercially economic volumes can be recovered from Birchcliff’s lands as a result of drilling future wells; and that commodity prices and general economic conditions will warrant proceeding with the drilling of such wells.

Birchcliff’s actual results, performance or achievements could differ materially from those anticipated in the forward-looking statements as a result of both known and unknown risks and uncertainties including, but not limited to: general economic, market and business conditions which will, among other things, impact the demand for and market prices of Birchcliff’s products and Birchcliff’s access to capital; volatility of crude oil and natural gas prices; risks associated with increasing costs, whether due to high inflation rates, supply chain disruptions or other factors; fluctuations in exchange and interest rates; an inability of Birchcliff to generate sufficient cash flow from operations to meet its current and future obligations; an inability to access sufficient capital from internal and external sources on terms acceptable to the Corporation; risks associated with Birchcliff’s Credit Facilities, including a failure to comply with covenants under the agreement governing the Credit Facilities and the risk that the borrowing base limit may be redetermined; fluctuations in the costs of borrowing; operational risks and liabilities inherent in oil and natural gas operations; the risk that weather events such as wildfires, flooding, droughts or extreme hot or cold temperatures forces the Corporation to shut-in production or otherwise adversely affects the Corporation’s operations; the occurrence of unexpected events such as fires, explosions, blow-outs, equipment failures, transportation incidents and other similar events; an inability to access sufficient water or other fluids needed for operations; the risks associated with supply chain disruptions; uncertainty that development activities in connection with Birchcliff’s assets will be economic; an inability to access or implement some or all of the technology necessary to operate its assets and achieve expected future results; geological, technical, drilling, construction and processing problems; uncertainty of geological and technical data; horizontal drilling and completions techniques and the failure of drilling results to meet expectations for reserves or production; uncertainties related to Birchcliff’s future potential drilling locations; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production, revenue, costs and reserves; the accuracy of cost estimates and variances in Birchcliff’s actual costs and economic returns from those anticipated; incorrect assessments of the value of acquisitions and exploration and development programs; the risks posed by pandemics, epidemics and global conflict and their impacts on supply and demand and commodity prices; actions taken by OPEC and other major producers of crude oil and the impact such actions may have on supply and demand and commodity prices; stock market volatility; loss of market demand; changes to the regulatory framework in the locations where the Corporation operates, including changes to tax laws, Crown royalty rates, environmental laws, climate change laws, carbon tax regimes, incentive programs and other regulations that affect the oil and natural gas industry (including uncertainty with respect to the interpretation of Bill C-59 and the related amendments to the Competition Act (Canada)); political uncertainty and uncertainty associated with government policy changes, including the risk of U.S. tariffs on goods exported from Canada and any retaliatory tariffs implemented; actions by government authorities; an inability of the Corporation to comply with existing and future laws and the cost of compliance with such laws; dependence on facilities, gathering lines and pipelines; uncertainties and risks associated with pipeline restrictions and outages to third-party infrastructure that could cause disruptions to production; the lack of available pipeline capacity and an inability to secure adequate and cost-effective processing and transportation for Birchcliff’s products; an inability to satisfy obligations under Birchcliff’s firm marketing and transportation arrangements; shortages in equipment and skilled personnel; the absence or loss of key employees; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, equipment and skilled personnel; management of Birchcliff’s growth; environmental and climate change risks, claims and liabilities; potential litigation; default under or breach of agreements by counterparties and potential enforceability issues in contracts; claims by Indigenous peoples; the reassessment by taxing or regulatory authorities of the Corporation’s prior transactions and filings; unforeseen title defects; third-party claims regarding the Corporation’s right to use technology and equipment; uncertainties associated with the outcome of litigation or other proceedings involving Birchcliff; uncertainties associated with counterparty credit risk; risks associated with Birchcliff’s risk management and market diversification activities; risks associated with the declaration and payment of future dividends, including the discretion of the Board to declare dividends and change the Corporation’s dividend policy and the risk that the amount of dividends may be less than currently forecast; the failure to obtain any required approvals in a timely manner or at all; the failure to complete or realize the anticipated benefits of acquisitions and dispositions and the risk of unforeseen difficulties in integrating acquired assets into Birchcliff’s operations; negative public perception of the oil and natural gas industry and fossil fuels; the Corporation’s reliance on hydraulic fracturing; market competition, including from alternative energy sources; changing demand for petroleum products; the availability of insurance and the risk that certain losses may not be insured; breaches or failure of information systems and security (including risks associated with cyber-attacks); risks associated with the ownership of the Corporation’s securities; the accuracy of the Corporation’s accounting estimates and judgments; and the risk that any of the Corporation’s material assumptions prove to be materially inaccurate.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other risk factors that could affect Birchcliff’s results of operations, financial performance or financial results are included in Birchcliff’s annual information form and annual management’s discussion and analysis for the financial year ended December 31, 2023 under the heading “Risk Factors” and in other reports filed with Canadian securities regulatory authorities.

This press release contains information that may constitute future-oriented financial information or financial outlook information (collectively, “FOFI”) about Birchcliff’s prospective financial performance, financial position or cash flows, all of which is subject to the same assumptions, risk factors, limitations and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue reliance should not be placed on FOFI. Birchcliff’s actual results, performance and achievements could differ materially from those expressed in, or implied by, FOFI. Birchcliff has included FOFI in order to provide readers with a more complete perspective on Birchcliff’s future operations and management’s current expectations relating to Birchcliff’s future performance. Readers are cautioned that such information may not be appropriate for other purposes.

Management has included the above summary of assumptions and risks related to forward-looking statements provided in this press release in order to provide readers with a more complete perspective on Birchcliff’s future operations and management’s current expectations relating to Birchcliff’s future performance. Readers are cautioned that this information may not be appropriate for other purposes.

The forward-looking statements and FOFI contained in this press release are expressly qualified by the foregoing cautionary statements. The forward-looking statements and FOFI contained herein are made as of the date of this press release. Unless required by applicable laws, Birchcliff does not undertake any obligation to publicly update or revise any forward-looking statements or FOFI, whether as a result of new information, future events or otherwise.

ABOUT BIRCHCLIFF:

Birchcliff is an intermediate oil and natural gas company based in Calgary, Alberta with operations focused on the Montney/Doig Resource Play in Alberta. Birchcliff’s common shares are listed for trading on the TSX under the symbol “BIR”.

For further information, please contact:

Birchcliff Energy Ltd.
Suite 1000, 600 – 3^rd Avenue S.W.
Calgary, Alberta T2P 0G5
Telephone: (403) 261-6401
Email: birinfo@birchcliffenergy.com
www.birchcliffenergy.com

Chris Carlsen – President and Chief Executive Officer

Bruno Geremia – Executive Vice President and Chief Financial Officer

The MIL Network –

February 13, 2025

MIL-OSI Canada: New Lions Gate Hospital tower opens next month

Source: Government of Canada regional news

People on the North Shore and in neighbouring communities will soon have enhanced access to health care services in the new, modern acute care tower at Lions Gate Hospital, opening March 9, 2025.

“I’m thrilled this new hospital tower is now complete, and families in North Vancouver and beyond will have better access to high-quality health-care services, closer to home,” said Bowinn Ma, Minister of Infrastructure. “Our government is making record investments to support growing communities, and we’re committed to delivering more hospitals, health-care centres, and other important infrastructure.”

The new six-storey tower is named after local philanthropist and businessperson Paul Myers. It has eight state-of-the-art operating rooms with a new medical device reprocessing department, as well as a pre-operative and post-operative care area, including anesthesia intervention and isolation rooms. There will be 108 beds in private patient rooms, all with ensuite washrooms.

Vancouver Coastal Health worked in collaboration with Sḵwx̱wú7mesh Úxwumixw (Squamish Nation) and səlilwətaɬ (Tsleil-Waututh Nation) advisers on key aspects of the project to honour the host Nations and help create safer, welcoming and culturally appropriate spaces for Indigenous patients and families.

“It’s terrific news for people living on the North Shore and area that the new patient care tower at Lions Gate Hospital is opening to meet the needs, comfort and well-being of people receiving care,” said Josie Osborne, Minister of Health. “By investing in state-of-the-art facilities around B.C., including the new Paul Myers Tower, we are truly investing in better health outcomes for British Columbians. This is part of our commitment to strengthen B.C.’s public health-care system.”

The acute tower was designed to provide patient- and family- centred care. It features a variety of spaces to support patients, family and staff well-being, including lounges, a House of Elders office, a sacred space, additional bike storage and a rooftop garden with a walking path. Further, innovative technologies and an upgraded nurse call system, improve patient experiences and enhance safety for patients and staff.

Construction began on the project in fall 2021. The total capital cost of the project is approximately $325 million. Funding is shared between the Province, Vancouver Coastal Health and the Lions Gate Hospital Foundation. Myers donated $25 million to the foundation’s $100-million campaign.

“We’re excited to care for patients in this new space,” said Jillian Morland, clinical nurse educator, Lions Gate Hospital at Vancouver Coastal Health. “The clinical spaces are larger and designed for flexibility and efficiency to better accommodate our teams. The technology upgrades, such as access to Vocera and Masimo, will enable us to deliver the highest quality care possible.”

Lions Gate Hospital provides a full range of acute-care services and many specialized services. With the 108 beds and eight operating rooms in this new tower, the Lions Gate Hospital will have a total of 329 beds, 10 operating rooms, and a variety of diagnostic services and equipment. The hospital also offers emergency and critical care, maternity, pediatrics, psychiatric, chemotherapy, cardiac care, palliative care and rehabilitative services.

This hospital will continue to serve patients from the Sea-to-Sky corridor, Sunshine Coast, Bella Bella and Bella Coola on the Central Coast, including the Heiltsuk, Kitasoo-Xai’xais, Lil’wat, N’Quatqua, Nuxalk, Samahquam, shíshálh, Skatin, Squamish, Tla’amin, Tsleil-Waututh, Wuikinuxv, and Xa’xtsa communities.

Quotes:

Chief Jen Thomas, səlilwətaɬ (Tsleil-Waututh Nation) –

“It is heartening to know the Paul Myers Tower in North Vancouver will soon open its doors as it will provide improved culturally informed health care for our Tsleil-Waututh Nation members and all Indigenous patients. VCH has demonstrated they are walking the path of reconciliation by engaging with us as partners to advise on how our traditional lands and waters could be reflected in the tower’s design. I’m proud to know the building will tell the story of our culture, incorporate our hən̓q̓əmin̓əm̓ language, and hold space for Elders as they access important health services.”

Sxwixwtn, Wilson Williams, spokesperson and council member, Sḵwx̱wú7mesh Úxwumixw –

“Through close collaboration with both the Sḵwx̱wú7mesh (Squamish) and səlilwətaɬ (Tsleil-Waututh) Nations, Vancouver Coastal Health was able to create a modern space that still reflects our values, traditions and cultures. From the façade resembling our Long Houses, to our stories and languages reflected throughout the interior and healing spaces, Paul Myers Tower is a thoughtful example of what can be accomplished when working meaningfully with First Nations to create a state-of-the-art medical facility that will benefit everyone across the North Shore community.”

Susie Chant, MLA for North Vancouver-Seymour –

“The completion of the Paul Myers Tower in North Vancouver will significantly improve health-care services for people on the North Shore. This new acute care tower will modernize community health services enabling faster, more accessible services closer to home.”

Dr. Penny Ballem, chair of the board, Vancouver Coastal Health –

“The Paul Myers Tower’s patient-centred design will improve the care experience for patients and their families and will help both present and future needs of a growing and aging population. We are grateful for the collaboration with host Nations, patients and community organizations as well as our dedicated staff and medical staff in co-creating a site that will transform the future of health care in our region and beyond.”

Judy Savage, president and CEO, Lions Gate Hospital Foundation –

“The remarkable lead gift of $25 million from North Shore Philanthropist Paul Myers inspired people to give what they could to help bring this much-needed facility to the North Shore. From official foundation events, and multi-million-dollar contributions, to community fundraisers and the proceeds from lemonade stands, every donation was essential in helping us raise $100 million toward the cost of a new medical and surgical centre and an additional $20 million to support technology transformation for the Lions Gate Hospital campus.”

Learn More:

For a Vancouver Coastal Health backgrounder on the new Paul Myers Tower, visit:
https://www.vch.ca/en/background-information-paul-myers-tower-lions-gate-hospital

For more information about Lions Gate Hospital, visit: https://www.vch.ca/en/location/lions-gate-hospital

For more information about health capital projects in B.C., visit: https://www2.gov.bc.ca/gov/content/health/accessing-health-care/capital-projects

MIL OSI Canada News –

February 13, 2025
MIL-OSI USA: Eyes to the Skies for the N.C. Bird Count at Aquarium
Source: US State of North Carolina

Headline: Eyes to the Skies for the N.C. Bird Count at Aquarium

Eyes to the Skies for the N.C. Bird Count at Aquarium
jejohnson6
Wed, 02/12/2025 – 14:18

KURE BEACH
All eyes will be on the skies Friday, Feb. 14, 9:30 a.m. to 4:30 p.m. as the North Carolina Aquarium at Fort Fisher (NCAFF) hosts the Great Backyard Bird Count. NCAFF environmental educators will inspire the community to join the count and launch newly minted bird counters on an exciting journey to earn an NC Bird Count badge. Special activities throughout the day offer an exciting time for anyone and everyone to help scientists gather information on birds in the state to support their conservation. Visitors will be able to walk out the doors of the Aquarium or use binoculars at the birding window to start counting right away.

Science Across NC
There will be four days of bird counting! The North Carolina Bird Count, organized by Science Across NC, runs Feb. 14-17, and includes more than 30 organizations across the state. This is a good excuse and a unique opportunity for people to experience the natural world happening in their own neighborhood.

“Birds are important species to observe, because healthy habitats for birds are also healthy homes for many other animals. Birds are also fun to watch, because they are usually easy to find and active throughout the year,” said Sammy Calderon, NCAFF environmental educator.

Take the First Step
Anyone can participate in the count, and it takes only a few steps to get plugged into the action. The first step is to create a free eBird account through the Cornell Lab of Ornithology ebird.org or their app, available for Android and Apple. Then, it’s just a matter of visiting a favorite spot to watch birds and enter the information into the app.

“The more people who join the count, the better,” said Calderon. “We are excited about inspiring the community to participate in the count and also take conservation action like turning off lights to reduce light pollution for migrating birds, among other ways to protect them.”

How to Protect Songbirds
- Use bird-friendly window treatments
- Turn off lights at night to reduce light pollution for migrating birds.
- Purchase certified Bird Friendly© coffee to preserve neotropical bird wintering grounds.
- Keep cats indoors to prevent predation of songbirds.
- Select grass-fed beef to help save grassland birds.
- Purchase certified sustainable paper products to help preserve the nesting grounds of boreal forest songbirds. Better yet, choose reusable items.
Why it Matters
Bird count is a big help in identifying local bird populations, migration patterns and other data that supports the conservation of birds. According to the Cornell Lab of Ornithology, the first-ever comprehensive assessment of net population changes in the U.S. and Canada reveals across-the-board declines that scientists call “staggering”:
- All told, the North American bird population is down by 2.9 billion breeding adults, with devastating losses among birds in every biome.
- Forests alone have lost 1 billion birds.
- Grassland bird populations collectively have declined by 53%, or another 720 million birds.
AZA SAFE: Saving Animals from Extinction
NCAFF is accredited through the Association of Zoos & Aquariums (AZA), a non-profit organization dedicated to the highest standards in the areas of conservation, animal welfare, education, science and recreation. Another way the Aquarium team supports bird conservation is through AZA SAFE: North American Songbirds (NAS). NAS is part of the AZA SAFE: Saving Animals from Extinction program. SAFE NAS focuses on more than 300 species in the order Passeriformes that spend part of their annual cycle in North America. Songbird population declines in North America persist because of habitat loss, climate change, building collisions, and predation from outdoor domestic cats.

For more information, visit Count Birds With Us, contact Sammy Calderon or call 910-772-0500.

Online Tickets Required
While at the Aquarium, visitors will also find immersive experiences including two families of Asian small-clawed otters, a couple of alligators and a 235-000-gallon habitat with two sand tiger sharks. The Bird Count activities are included with admission. Online reservations are required to visit the Aquarium at NCAFF Tickets.

About the North Carolina Aquarium at Fort Fisher
The North Carolina Aquarium at Fort Fisher is just south of Kure Beach, a short drive from Wilmington, on U.S. 421. The site is less than a mile from the Fort Fisher ferry terminal. Hours: 9 a.m. to 5 p.m. daily. Admission: $12.95 ages 13-61; $10.95 children ages 3-12; $11.95 seniors (62 and older) and military with valid identification; EBT card holders: $3 for adults and $2 for children ages 3-12. Free admission for children 2 and younger and N.C. Aquarium Society members and N.C. Zoo members. General information: ncaquariums.com/fort-fisher
Feb 10, 2025

MIL OSI USA News –
February 13, 2025
MIL-OSI Europe: Answer to a written question – EU-Canada agreement on Horizon Europe: reciprocity and safeguarding strategic interests – E-002535/2024(ASW)
Source: European Parliament
1. The Agreement associating Canada to Pillar II, ‘Global Challenges and European Industrial Competitiveness’, of the Horizon Europe Programme[1], was signed on 3 July 2024 and published in the Official Journal on 26 July 2024[2]. The European Parliament Committee on Industry, Research and Energy was regularly informed on the negotiations. Reciprocity and the possibility for legal entities established in the EU to participate in projects, programmes and activities of Canada equivalent to those under Pillar II is expressly provided for in Article 3 of the Protocol to the Agreement and is thus one of the conditions for the association of Canada to Horizon Europe.

2. Canadian entities participating in Horizon Europe must abide by the requirements set out in the calls for proposals and in the grant agreements. In addition, in line with Article 22(5) of the Horizon Europe Regulation[3], the EU can put restrictions on the participation of Canadian entities (or of any third country’s entities) in Horizon Europe actions related to EU strategic assets, interests, autonomy or security ( Article 2 of the Protocol to the Agreement) . Furthermore,the Commission may request specific information or assurances in this regard, including whether reciprocal access to equivalent Canadian projects, programmes and activities has been or will be granted to EU entities, before deciding on whether Canadian entities can be considered eligible to participate in such restricted actions.

3. A non-exhaustive list of the existing equivalent Canadian projects, programmes and activities which are reciprocally open to the participation of EU entities is set out in Annex II of the Protocol.

[1] https://research-and-innovation.ec.europa.eu/funding/funding-opportunities/funding-programmes-and-open-calls/horizon-europe_en

[2] OJ L, 2024/2007, 26/07/2024.

[3] OJ L 170, 12/05/2021 .
Last updated: 12 February 2025
MIL OSI Europe News –
February 13, 2025
MIL-Evening Report: Removing babies is still harming First Nations families, almost two decades after the apology to Stolen Generations
Source: The Conversation (Au and NZ) – By Sam Burrow, PhD candidate, School of Population and Global Health, The University of Western Australia

Belinda Howell/Getty Images

Today marks 17 years since the apology to Australia’s Indigenous peoples for the forced removal of Aboriginal and Torres Strait Islander children from their families between the mid-1800s and 1970s.

Yet, communities and researchers are concerned that child protection systems are creating “another stolen generation” and a “crisis in infant removals”.

Statistics tell us Indigenous children are 11 times more likely to be removed by child protection systems than non-Indigenous children. Indigenous babies aged under one are at greatest risk.

But beyond the data, what do parents tell us about this experience?

Our recent study reviewed all the studies available about child protection processes in the perinatal period (during pregnancy and the year following birth) in Australia and across the world.

We looked at parents’ experiences across the board, with a special interest in whether First Nations families had been included in existing research.

What we already knew

Whistleblowers, including a former Aboriginal family support officer, have reported distressing child protection processes, including the removal of babies immediately following delivery.

Families that interact with child protection systems often already face multiple and complex forms of adversity. This can include poverty, homelessness, racism, intergenerational trauma, family violence, disability, mental illness, substance use and incarceration.

The perinatal period offers a unique window for early intervention and family support to reduce the risk of removal.

This could involve greater help accessing suitable housing and addressing family violence, and enhancing access to health care that is culturally safe and trauma-informed, before and after birth.

What we found

Our systematic review examined 24 studies about child protection services becoming involved with families during pregnancy and the first year after birth. This included research from Australia, the United Kingdom, Canada, the United States, New Zealand and Sweden.

We looked at what parents told researchers about their experiences and found striking similarities, regardless of where they lived.

Globally, there were comparatively few studies including First Nations families. But both Indigenous and non-Indigenous parents reported punitive processes that had an enduring impact on the health and wellbeing of the parent and family.

They also agreed that early, transparent, compassionate and culturally appropriate support was required to address their needs. These included legal support to understand court processes, as well as being able to access health care without fear it could lead to removal.

Four themes emerged from these lived experiences. Here, we’ve included the voices of Aboriginal mothers who participated in a 2023 Australian study to illustrate the importance of these issues to Indigenous families.

1. A lack of support before and after removal

Parents often found the birth of their babies life-changing. However many believed child protection services didn’t adequately understand their experience or inform and support them at this time.

Mothers felt confused and overwhelmed, experiencing symptoms of post-traumatic stress disorder and enduring grief following the removal of their babies.

Bridget*, an Aboriginal mother, told researchers:

There is no support… I think they should help towards improving family and helping family before taking a child away. It should be the absolute last option.

Mothers were left confused and grieving after removals.
Solstock/Getty Images

2. Devastating impact on relationships and wellbeing

Mothers often felt isolated and described negative interactions not only with child protection workers but also partners and families.

Fear of removal also prevented mothers from seeking antenatal care or professional support services, further compromising health and wellbeing.

Stacey said:

You have to do what they want; they control everything… who you hang out with, what you do […] There is no fixing the family… What they say goes or they take your kids.

3. Feeling powerless in the system

Many mothers had been in care themselves. They felt unfairly punished, because it was assumed they would not be capable parents due to past and present trauma.

First-time parents felt especially powerless to prove their parenting capacity.

Stacey said removing a baby from a first-time mum causes

a lot of stress and impact on everyone involved… It’s causing a lot of pain… give us the chance to be with our child to build that bond first.

Parents described surveillance framed as support, a lack of professional transparency, and often unexpected and acutely painful removals.

4. Harmful judgements and stereotypes

Insufficient support for poverty and homelessness before removal made it impossible to meet child protection requirements.

A mother who was homeless at the time her baby was removed said:

We had got secure accommodation with family. […] We weren’t doing any drugs; we were on the methadone… we had a caseworker…

They led us to believe we’re keeping her… [then] they handed me a piece of paper and said, “We’re taking your baby”. I was in shock… I felt like I was ambushed.

Parents with complex health issues also felt judged according to negative stereotypes and traditional, white, middle-class standards.

Some parents lost welfare entitlements and housing because babies had been removed, compounding their difficulties.

Some mothers felt ambushed by the process.
New Africa/Shutterstock

Where to from here?

In Australia, current Indigenous-led research and the work of Aboriginal state, territory, and national children’s commissioners is critical to guiding the development of support for families to stay together and thrive.

Parents and researchers are united about the immediate need for child protection systems to:
- provide early and sustained family-centred support during pregnancy and beyond
- address families’ practical and material needs, including poverty and homelessness
- train professionals to reduce power imbalances and build trusted relationships
- offer trauma-informed and culturally matched support services
- provide immediate and ongoing mental health support if babies are removed.
Renna (a co-author on this article and also a proud Walbunja woman from the Yuin Nation, academic and social worker) reflects on the removal of her baby not long before the apology.

Eighteen years later, I know we will never feel whole, left with empty arms, a life stolen, the shadow festers and grows.

Special thanks to our review co-authors Melissa O’Donnell, Lisa Wood, Colleen Fisher and Renée Usher, our expert advisory group, the Stan Perron Charitable Foundation and the original participants and researchers whose primary studies made our review and this article possible.

*Names have been changed for privacy.

If this article has raised issues for you, or if you’re concerned about someone you know, call Lifeline on 13 11 14. 13YARN is a free and confidential 24/7 national crisis support line for Aboriginal and Torres Strait Islander people who are feeling overwhelmed or having difficulty coping. Call 13 92 76.

Sam Burrow receives a PhD scholarship from the Stan Perron Charitable Foundation.

Renna Gayde is affiliated with SAFeST start coalition, a stream of the Replanting the Birthing Trees Project.

– ref. Removing babies is still harming First Nations families, almost two decades after the apology to Stolen Generations – https://theconversation.com/removing-babies-is-still-harming-first-nations-families-almost-two-decades-after-the-apology-to-stolen-generations-249353
MIL OSI Analysis – EveningReport.nz –
February 13, 2025
MIL-OSI Security: Clearland — UPDATE: Missing person found safe

Source: Royal Canadian Mounted Police

The 28-year-old man who was reported missing on February 11 from Clearland has been found safe.

The RCMP thanks Bridgewater Police Service for their assistance with this investigation, and Nova Scotians for assisting with missing persons files through social media shares and offering tips.

MIL Security OSI –

February 13, 2025
MIL-OSI Security: Natuashish — Natuashish RCMP investigates serious assault; victim airlifted for medical treatment, woman arrested

Source: Royal Canadian Mounted Police

Following an investigation into a serious assault that occurred at a home in Natuashish on February 10, 2025, 32-year-old Antonia Jacobish was arrested and charged by Natuashish RCMP.

Shortly before midnight on Monday, Natuashsish RCMP received a report of the assault. A woman received serious injuries resulting from a physical attack that occurred inside a home. The victim was airlifted out of the community for urgent medical attention.

The investigation, which was assisted by RCMP NL’s West District General Investigation Section, resulted in the arrest of Jacobish on February 11, 2025. She attends court today, charged with aggravated assault and assault with a weapon. The victim of the crime is recovering from injuries that are now considered non-life threatening.

MIL Security OSI –

February 13, 2025
MIL-OSI USA: Durbin Condemns Tulsi Gabbard’s Nomination To Serve As Director Of National Intelligence

US Senate News:

Source: United States Senator for Illinois Dick Durbin
February 12, 2025
WASHINGTON – In a speech on the Senate floor, U.S. Senate Democratic Whip Dick Durbin (D-IL) outlined his serious concerns with Tulsi Gabbard, President Trump’s nominee to be the Director of National Intelligence ahead of her confirmation vote. Durbin began his remarks by highlighting the history of the Office of the Director of National Intelligence, which was established after the September 11th terrorist attacks.
“[September 11 led to the creation] of the Office of the Director of National Intelligence, which oversees the 18 intelligence agencies that span the CIA, Defense Department, State Department, Energy Department, and others. It is now essential to modern safety in America. But yet, the President—Donald Trump—has selected a person who has little or no experience to lead this critical part of America’s security apparatus: her name is Tulsi Gabbard,” Durbin said.
“During President Trump’s first term, he made clear his fondness for certain leaders of the world that are controversial such as Viktor Orban of Hungary, Vladimir Putin of Russia, and Kim Jong Un of North Korea. So, he ends up picking a person to run America’s intelligence network who shares similarly terrible judgment on critical security matters. Tulsi Gabbard is infamous fordefending despots and other autocratic leaders in the world—including Vladimir Putin and Bashar al-Assad—and traitors to the United States such as Edward Snowden. And her fondness for these oppressive, anti-democratic regimes does not go unreciprocated—they know her [and] they like her,” Durbin continued.
Durbin then highlighted examples on the floor of the anti-democratic regimes who are cheering for Ms. Gabbard’s confirmation—including hosts of Russian media who believe her nomination will “dismantle America,” and some on Russian state channels have even referred to her as their “girlfriend.” Russian state TV also called her a Russian “comrade” in President Trump’s emerging cabinet. A pro-Putin propagandist Vladimir Soloviev once called Gabbard “our friend.” Later, when asked if she was “some sort of Russian agent?” Soloviev replied: “yes.” In a profile in a Russian state newspaper, it said of Gabbard’s nomination: “The C.I.A. and the F.B.I. are trembling,” noting that Ukrainians consider her “an agent of the Russian state.”
“Imagine that. The person tapped to head America’s intelligence community—being called a puppet of an adversary’s country by that very same country. It seems too ridiculous to be true. But I’m sorry to say it is. To merely join America’s intelligence community—never mind lead it—candidates must go through vigorous background checks and earn security clearances… If Tulsi Gabbard was applying for an entry-level position, her relationship with Russia would disqualify her for the job. Why, then, would we trust her to [head the entire intelligence network] given the examples that abound of Tulsi Gabbard proving publicly, shamelessly, and carelessly her sympathies for nations that undermine U.S. interests and security. That is unexplainable and irresponsible,” Durbin continued.
“Our allies depend on us as much as we depend on their security and to share critical intelligence. Now, they are looking at us in disbelief that we would let someone like Tusli Gabbard with such an appalling record anywhere near the leadership of the intelligence community. Intelligence professionals from Canada and the United Kingdom—which are members of the critical Five Eyes intelligence alliance along with the U.S., Australia, and New Zealand—have expressed concern about even working with her if she is in charge. In order to keep Americans safe throughout the world, we need to have the trust of our allies,” Durbin said.
Durbin then spoke about the impacts Ms. Gabbard’s confirmation would have on supporting our Ukrainian ally and their defense against Russia. Since Russia’s full-scale invasion, Gabbard has taken Russia’s side—claiming ‘Russia had legitimate security concerns,’ and blaming NATO, one of our most significant security alliances.
“Let me be clear: Supporting democracies has not historically been a partisan matter,” Durbin continued. “For example, contrast Tulsi Gabbard’s nonsense with former President Ronald Reagan’s clear-eyed understanding of the danger of the communist Russian empire. Nearly 40 years ago, he stood at the Brandenburg Gate in West Berlin and famously challenged the Soviet Union to ‘tear down this wall.’ Reagan understood the true nature and threat of the Russians. And we have all seen the horrific costs of Russia’s war in Ukraine and increasing attacks against NATO allies.”
“Is there a deal to be made to end this war? Perhaps. But doing so must be with the best intelligence available—a clear eye about who we are negotiating with and long-term guarantees of the security of Ukraine, of Europe, and the transatlantic alliance. One would think that any American president navigating such difficult waters would want a top official to serve as the head of National Intelligence. Tulsi Gabbard fails that test,” Durbin said.
Durbin concluded, “Tulsi Gabbard would not be qualified for an entry-level position within our intelligence community. And she is not qualified to lead it. Period. Some of the President’s cabinet nominees are hard to imagine because they are so unqualified. But for the position of DNI—putting someone unqualified in charge is not funny at all. It is life or death dangerous.”
Video of Durbin’s remarks on the Senate floor is available here.
Audio of Durbin’s remarks on the Senate floor is available here.
Footage of Durbin’s remarks on the Senate floor is available here for TV Stations.
-30-

MIL OSI USA News –

February 13, 2025
MIL-OSI: Red Cat Raises Up to $20 Million in Debt Financing
Source: GlobeNewswire (MIL-OSI)

SAN JUAN, Puerto Rico, Feb. 12, 2025 (GLOBE NEWSWIRE) — Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat”), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, today announced it has entered into an agreement for up to $20 million and closed on the initial tranche of $16.5 Million in debt financing with The Lind Partners, a New York based institutional fund manager (“Lind”). Details of the agreement include:
- Debt Financing convertible at $16.15 share price
- Initial Tranche proceeds of $15 million
- 1 million warrants exercisable at $15.00 per share non cashless
Additionally, Red Cat has applied for $58 million in debt financing from the Department of Defense Office of Strategic Capital (OSC). OSC implements strategies and partnerships to accelerate and scale private investment in critical supply chain technologies needed for national security. They have identified 14 critical technology areas vital to maintaining the United States’ national security. These have been grouped into three categories as found in the 2023 National Defense Science and Technology Strategy.
- Seed Areas of Emerging Opportunity
- Effective Adoption Areas
- Defense-Specific Areas
The investment is expected to provide Red Cat with the working capital needed to scale up production and the ongoing development of its Arachnid Family of Systems, which includes Black Widow™, Edge 130, and a new line of FANG™ First-Person View (FPV) drones. The goal of the Family of Systems is to meet the needs of the U.S. Department of Defense and NATO Allies for drone systems that are low-cost, portable, field repairable, and recoverable.

“The recent financing will allow us to expedite and expand the Edge 130 factory and build-out and ramp up mass production of the Black Widow,” said Jeff Thompson. Red Cat CEO. “As a company focused on technology that advances the Department of Defense capabilities, we are a strong candidate for the Office of Strategic Capital’s low-cost debt program. The potential total financing of $93 million is the least dilutive option for our shareholders.”

About Red Cat, Inc.  
Red Cat (Nasdaq: RCAT) is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Through two wholly owned subsidiaries, Teal Drones and FlightWave Aerospace, Red Cat has developed a Family of Systems. This includes the Black Widow™, a small unmanned ISR system that was awarded the U.S. Army’s Short Range Reconnaissance (SRR) Program of Record contract. The Family of Systems also includes TRICHON™, a fixed wing VTOL for extended endurance and range, and FANG™, the industry’s first line of NDAA compliant FPV drones optimized for military operations with precision strike capabilities. Learn more at www.redcat.red.

About The Lind Partners
The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind’s funds make direct investments ranging from US$1 to US$30 million, invest in syndicated equity offerings and selectively buy on market. Having completed more than 150 direct investments totaling over US$1.5 Billion in transaction value, Lind’s funds have been flexible and supportive capital partners to investee companies since 2011.

Forward-Looking Statements 
This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” “will,” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Red Cat Holdings, Inc.’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the final prospectus related to the public offering filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Red Cat Holdings, Inc. undertakes no duty to update such information except as required under applicable law. 

Contacts:

INVESTORS:
E-mail: Investors@redcat.red

NEWS MEDIA:
Indicate Media
Phone: (347) 880-2895
Email: peter@indicatemedia.com

The MIL Network –
February 13, 2025
MIL-OSI Global: Many Canadian households are being shortchanged from retrofit programs — this needs to change

Source: The Conversation – Canada – By Kareman Yassin, Assistant Professor, Hitotsubashi University

Canada has set an ambitious goal to reduce greenhouse gas emissions by 45 to 50 per cent below 2005 levels. This puts pressure on the residential and commercial building sector, which is responsible for about 18 per cent of national greenhouse gas emissions, to help meet this target.

Since most of Canada’s 16 million homes are expected to still be in use by 2050, the path to net-zero requires upgrading existing homes, not just constructing new net-zero ones.

To address this, retrofit programs that improve home energy efficiency have become one of Canada’s main strategies to cut emissions in the housing sector. These programs focus on upgrades like air sealing, enhanced insulation, upgrading heating and cooling systems and installing energy-efficient windows and doors.

But do these programs deliver on their promises of lower bills and reduced carbon emissions? Our recent study, forthcoming in Energy Economics, examined the outcomes of the federal ecoENERGY home retrofit program, a predecessor to the Greener Homes Initiative.

Our findings shed light on where the program succeeded, where it fell short and what this all means for Canadian families and policymakers moving forward.

Real-world energy savings

Our study analyzed a decade of monthly electricity and natural gas consumption data from Medicine Hat, Alta., where residents participated in the federal ecoENERGY retrofit program that was in place between 2008 to 2012.

We found that households undertaking comprehensive envelope retrofits — which includes insulation and air sealing — reduced their total energy use by an average of 25 per cent per household. Natural gas usage dropped by 35 per cent on average for these same households, and these savings lasted for at least 10 years after the retrofit.

This suggests that such retrofits hold promise for meaningful, long-lasting energy reductions, especially for home heating, which makes up a large part of residential energy use in Canada.

However, our study found that homes achieved only about 60 per cent of the predicted savings projected in pre-retrofit estimates. While measures like air sealing and attic and wall insulation were relatively effective, other upgrades, such as basement insulation and energy-efficient windows, showed zero effect on energy use.

This gap between projected and actual savings suggests that the estimates shown to households during pre-retrofit audits might be overestimating the benefits. This could leave families with lower-than-expected savings on their energy bills after making significant financial investments. These findings align with similar studies in the United States and Europe, where realized energy savings hover at around 60 per cent of pre-retrofit projections.

Despite this gap, there are promising opportunities for low-cost, high-return investments. Our research suggests that relatively cheap measures like air sealing generate high returns. Adopting electric heat pumps and fuel switching also show promise for delivering both energy savings and reductions in greenhouse gas emissions.

The need for broader participation

Our study also revealed significant gaps in program access and the distribution of benefits. Although the ecoENERGY program was available to all Canadian households, participation was highest among families of mid-valued houses.

Participation among families in lower-valued houses was disappointingly low: about four per cent of the families in lowest-valued houses took part, even though they stood to benefit the most from reduced energy bills. Homes in our study saw bill savings ranging from eight to 17 per cent, based on a comparison of their actual consumption before and after the retrofit. The highest savings were observed in homes with assessed values of $100,000.

Middle-valued homes with the highest retrofit program participant rate tended to save the least amount of money; this group had average gas bill reductions of approximately 10.5 per cent.

The maximum amount that could be claimed under the ecoENERGY program was $5,000, yet the average rebate received was $1,100. This disparity not only limited the program’s potential to reduce emissions on a large scale, but also means Canada’s current approach to energy retrofits may be missing an opportunity to improve energy affordability for those who need it most.

Room for improvement

Energy-saving retrofits have significant potential, but current prediction models often overestimate the savings homeowners can achieve. Improving these models could allow homeowners to make better-informed choices, leading to greater efficiency and improved household welfare.

Upfront costs also remain a significant barrier, particularly for lower-income families. Many cannot afford the upfront expenses associated with retrofitting their homes. Expanded financial support, such as rebates or no-interest loans, may provide much-needed support necessary to allow more households to participate, and more research is needed to evaluate how best to incentivize household participation.

Another major challenge is a lack of awareness. Many Canadians are unaware of the benefits of deep retrofits. Public awareness campaigns, possibly delivered in collaboration with community organizations, may also help educate homeowners on the long-term value of retrofits and make the process more accessible and appealing.

Our project is the first in Canada to use detailed household-level data to assess energy savings from retrofits in houses of various values. We were able to achieve this through partnerships between academia, utilities and the federal government. Such collaborations are crucial for advancing research that informs effective policies and programs.

As Canada advances toward net-zero emissions by 2050, energy-efficient housing should remain central to its climate strategy. Achieving sustainable progress in this area will require retrofit programs that deliver on their promises by enhancing household welfare, addressing energy affordability and ensuring continued public support.

Maya Papineau receives funding from Social Sciences and Humanities Research Council and the National Science and Engineering Research Council and the National Research Council of Canada.

Nicholas Rivers receives funding from the Social Sciences and Humanities Research Council and the National Science and Engineering Research Council. He is affiliated with the Canadian Climate Institute.

Kareman Yassin does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Many Canadian households are being shortchanged from retrofit programs — this needs to change – https://theconversation.com/many-canadian-households-are-being-shortchanged-from-retrofit-programs-this-needs-to-change-236388

MIL OSI – Global Reports –

February 13, 2025
MIL-OSI Global: The Paris AI summit marks a tipping point on the technology’s safety and sustainability

Source: The Conversation – Canada – By Robert Diab, Professor, Faculty of Law, Thompson Rivers University

United States Vice President JD Vance made headlines this week by refusing to sign a declaration at a global summit in Paris on artificial intelligence.

In his first appearance on the world stage, Vance made clear that the U.S. wouldn’t be playing ball. The Donald Trump administration believes that “excessive regulation of the AI sector could kill a transformative industry just as it’s taking off,” he said. “We’ll make every effort to encourage pro-growth AI policies.”

His remarks confirmed a widespread fear that Trump’s return to the White House will signal a sharp turn in tech policy. American tech companies and their billionaire owners will now be shielded from effective oversight.

But upon a closer look, events this week point to signs that just the opposite may be unfolding. A host of nations took notable steps towards address growing safety and environmental concerns about AI, indicating that a regulatory tipping point has been reached.

Prime Minister Justin Trudeau delivered the keynote address at the AI Action Summit in Paris, France.

Wide consensus

The two-day global summit in Paris, chaired by France and India, led to broad consensus. Some 60 countries signed on to a Statement on Inclusive and Sustainable AI. This included Canada, the European Commission, India and China.

Both the U.S. and the United Kingdom declined to sign on. But the prevailing winds are against them.

The meeting in Paris was the third global summit on AI, following meet-ups at Bletchley Park in the U.K. in 2023 and in Seoul, South Korea, in 2024. Each of them ended with similar declarations widely endorsed.

The Paris communiqué calls for an “inclusive approach” to AI, seeking to “narrow inequalities” in AI capabilities among countries. It encourages “avoiding market concentration” and affirms the need for openness and transparency in building and sharing technology and expertise.

The document is not binding. It does little more than tout principles, or affirm a collective sentiment among the parties. One of these — perhaps the most important — is to keep talking, meeting and working together on the common concerns that AI raises.

Environmental challenges

Meanwhile, a smaller group of countries at the Paris summit, along with 37 tech companies, agreed to form a Coalition for Sustainable AI — setting out a series of goals and deliverables.

While nothing is binding on the parties, the goals are notably specific. They include coming up with standards for measuring AI’s environmental impact and more effective ways for companies to report on the impact. Parties also aim to “optimize algorithms to reduce computational complexity and minimize data usage.”

Even if most of this turns out to be merely aspirational, it’s important that the coalition offers a platform for collaboration on these initiatives. At the very least, it signals a likelihood that sustainability will be at the forefront of debate about AI moving forward.

Read more:
AI is bad for the environment, and the problem is bigger than energy consumption

Signing the first international treaty on AI

A further notable event at the summit was that Canada signed the Council of Europe’s Framework Convention on Artificial Intelligence and Human Rights, Democracy and the Rule of Law. In recent months, 12 other countries had signed, including the U.S. (under former president Joe Biden), the U.K., Israel and the European Union.

The convention commits parties to pass domestic laws on AI that deal with privacy, bias and discrimination, safety, transparency and environmental sustainability.

The treaty has been criticized for containing no more than “broad affirmations” and imposing few clear obligations. But it does show that countries are committed to passing law to ensure that AI development unfolds within boundaries — and they’re eager to see more countries do the same.

If Canada were to ratify the treaty, Parliament would likely revive Bill C-27, which contained the AI and Data Act.

Read more:
The federal government’s proposed AI legislation misses the mark on protecting Canadians

The act aimed to do much of what Canada agrees to do under the convention: impose greater oversight of the development and use of AI. This includes transparency and disclosure requirements on AI companies, and stiff penalties for failure to comply.

What does this really mean?

While the U.S. signed the convention on AI and human rights, democracy and rule of law in the fall of 2024, it likely won’t be implemented by a Republican Congress. The same might happen in Canada under a Conservative government led by Pierre Poilievre. He could also decide not to fulfil commitments made under other agreements about AI.

And if Poilievre comes to power by the time Canada hosts the next G7 meeting in June, he might decline to honour the Trudeau government’s commitment to make AI regulation a central focus of the meeting.

The Trump administration may have ushered in a period of more lax tech regulation in the U.S., and Silicon Valley is indeed a key player in tech — especially AI. But it’s a wide world, with many other important players in this space, including China, Europe and Canada.

The events in Paris have revealed a strong interest among nations around the globe to regulate AI, and specifically to foster ideas about inclusion and sustainability. If the Paris summit was any indication, the hope of sheltering AI from effective regulation won’t last long.

Robert Diab does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. The Paris AI summit marks a tipping point on the technology’s safety and sustainability – https://theconversation.com/the-paris-ai-summit-marks-a-tipping-point-on-the-technologys-safety-and-sustainability-249706

MIL OSI – Global Reports –

February 13, 2025
MIL-OSI Canada: Funding supports culturally safe emergency responses for Indigenous Peoples

Source: Government of Canada regional news

The Community Emergency Preparedness Fund (CEPF) is funded by the Ministry of Emergency Management and Climate Readiness and administered through the Union of British Columbia Municipalities. The CEPF funds projects that support First Nations and local governments to better prepare for disasters and reduce risks from hazards in a changing climate.

Communities throughout British Columbia will receive approximately $1 million in provincial funding as follows:

Boothroyd Indian Band – Knowledge keepers’ information and sharing for culturally safe emergency response
Amount: $31,000

Bulkley-Nechako Regional District – Cultural competency in emergency-response training
Amount: $31,650

Central Okanagan Regional District – Cultural safety and humility training
Regional partners: Kelowna, Peachland, Lake Country, Westbank First Nation, West Kelowna
Amount: $237,000

Coquitlam – Cultural safety and humility training
Amount: $40,000

East Kootenay Regional District – Indigenous cultural awareness training
Amount: $25,000

Fraser Valley Regional District – Contextual cultural awareness training
Amount: $40,000

Hope – Cultural safety training
Amount: $39,600

Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nations – Training for emergency responders to work effectively and safely with the Ka:’yu:’k’t’h’/Che:k’tles7et’h’
Amount: $40,000

Kamloops – Emergency program cultural safety and humility training
Amount: $40,000

Kitimat – Haisla Nation cultural awareness training
Amount: $10,000

Merritt – Emergency-management program Indigenous engagement
Amount: $40,000

North Coast Regional District – Indigenous cultural safety and humility training
Regional partners: Prince Rupert, Port Edward
Amount: $110,000

North Vancouver – Truth and reconciliation training
Amount: $33,960

Port Moody – Indigenous cultural safety and cultural humility training
Amount: $40,000

Sema:th First Nation (Sumas) – Transforming emergency management through cultural safety
Amount: $40,000

Splatsin First Nation (Spallumcheen) – Resilient Roots: cultural safety in emergencies
Amount: $40,000

Sqwá First Nation (Skwah) – Community capacity building to foster shared understanding of trauma in emergency response
Amount: $40,000

Strathcona Regional District – This Territory You Are On training
Regional partners: Village of Tahsis, Gold River, Klahoose First Nation, Xwémalhkwu (Homalco) First Nation, Nuchatlaht First Nation, Ehattesaht
Amount: $157,300

Vernon – Cultural safety educators
Amount: $40,000

West Vancouver – Reconciliation, equity, diversity and inclusion workshop
Amount: $40,000

MIL OSI Canada News –

February 13, 2025
MIL-OSI Global: Education for peace: the effort to teach children how to rebuild societies after WWII

Source: The Conversation – France – By Camille Mahé, Maîtresse de conférences en histoire, Université de Strasbourg

While the first world war and the Spanish civil war had already drawn children in Europe and beyond into the orbit of conflict, the second world war marked a pivotal period in how young people have experienced the horrors of war.

During the 1940s, children faced unprecedented mobilisation and violence. From bombings and massacres to forced displacement and genocide, the impact was staggering. Millions of children were directly affected by these atrocities, while countless others endured the indirect consequences: shortages, family separations and grief.

In the aftermath of the war, childhood experts such as pediatricians, psychologists and nutritionists, as well as political leaders and humanitarian workers, feared for this potentially “lost generation”. With recognition of the vulnerability of children as a social group, there was a transnational push to implement protective measures. This shared awareness led to milestones such as the establishment of the United Nations International Children’s Emergency Fund (UNICEF) in December 1946 and, later, the adoption of the Declaration of the Rights of the Child.

The period from 1939 to 1949 not only highlighted the need to protect children worldwide, but also underscored their importance in building a peaceful future. As detailed in La Seconde Guerre mondiale des enfants (The second world war of children), published in September 2024 by Presses Universitaires de France, children embodied hope for postwar nations. They were seen not only as victims of war but also as active participants in shaping a peaceful world.

Schools as foundations of reconstruction

After 1945, schools became central to Europe’s social reconstruction. Seen as spaces of socialisation that included nearly all children, schools were viewed as critical for rebuilding society. Some measures mirrored those introduced after the first world war. Children, particularly those aged 6 to 14 (the typical age for compulsory education in Europe), were tasked with preserving the memory of fallen soldiers, resistance fighters and civilian victims. They cleaned and adorned graves, attended public ceremonies and paid homage to the dead.

However, postwar education went further. In some countries, particularly those that formerly had authoritarian or totalitarian regimes such as Italy and Germany, school curricula underwent significant transformation. Lessons on democratic governance and peaceful figures were either reinforced or reintroduced, and history classes began emphasising cultural, political and economic exchanges between nations. These reforms aimed to counteract the nationalist ideologies that had fuelled war and division.

Unlike the post-WWI era, the years after 1945 saw efforts to strengthen ties between nations by fostering connections among their youngest citizens. Programs promoting international school exchanges flourished. French students corresponded with Canadian peers, British children sent books to Germans and Swedish students traveled to Belgium.

Germany hosted one of the most ambitious programs: the US-led “World Friendship Among Children Program”. This initiative included pen-pal projects, student travel and even the symbolic adoption of war orphans by classrooms. The program also established the “World Friendship Council of the Future”, where young people proposed initiatives for international dialogue, mimicking the operations of newly formed organisations such as the United Nations, UNESCO (United Nations Educational, Scientific and Cultural Organization) and the World Health Organization.

It was also in Germany that Houses of America, or Youth Centres, were established. While the goal was to offer children sports and cultural activities, they were primarily seen by Americans as tools of soft power and political instruments to (re)educate youth about the principles of democracy.

Active pedagogy for European education

Indeed, after 1945, educating children for peace also meant educating them about democracy. Across Western Europe, teaching methods inspired by progressive education movements – championed by figures such as Maria Montessori, Ovide Decroly and John Dewey – became widespread.

For educational leaders, merely teaching democratic principles wasn’t enough: children needed to practice them. Classrooms became miniature societies where students elected class representatives, voted on school matters and debated everyday and political issues. This active engagement aimed to cultivate civic responsibility and critical thinking.

Some postwar experiments went further. Communities of children or “children’s republics” emerged across Europe to provide homes for children who had lost their homes and parents. While their primary mission was humanitarian, these communities were also intended to form the foundations of new, peaceful societies. Self-governance was central to their goal of preparation for active citizenship. In the Repubblica dei Ragazzi (boys’ republic) in Santa Marinella, near Rome, children ran their own court, deliberative assembly and union.

Ideological differences

While schools are indeed the cornerstone of global peacebuilding, debates about fostering peace go beyond the classroom to encompass all aspects of children’s lives. This includes the private sphere, as evidenced by numerous transnational legislative efforts to ban violent comic books and war-themed toys, which are accused of inciting aggression in children and thus threatening a peaceful future.

This surge of post-WWII initiatives underscores the fact that educating for peace and democracy was a European – if not global – project. However, its interpretation varied depending on country and region. In France, West Germany and Italy, the project was rooted in liberal ideals; in Eastern Europe, it reflected a different understanding of democracy.

In the West, the focus was on the individual, with boys and girls assigned traditional, gendered roles: girls were encouraged to become future mothers, while boys were groomed to be workers contributing to economic growth. In contrast, the Eastern model emphasised collective values within a socialist framework, promoting more egalitarian relationships between boys and girls, albeit in service of political objectives.

Regardless of ideological differences, these post-1945 initiatives left a lasting legacy. Their influence can still be seen today in school activities such as student elections and class trips, which continue to echo the democratic ideals of that era.

Camille Mahé ne travaille pas, ne conseille pas, ne possède pas de parts, ne reçoit pas de fonds d’une organisation qui pourrait tirer profit de cet article, et n’a déclaré aucune autre affiliation que son organisme de recherche.

– ref. Education for peace: the effort to teach children how to rebuild societies after WWII – https://theconversation.com/education-for-peace-the-effort-to-teach-children-how-to-rebuild-societies-after-wwii-246087

MIL OSI – Global Reports –

February 13, 2025
MIL-OSI Canada: The Government of Saskatchewan is Investing $58 Million This Year to Address Growing Student Enrolment

Source: Government of Canada regional news

Released on February 12, 2025

The Government of Saskatchewan is taking further action to support growing student enrolment by investing an additional $29.5 million in relocatable classrooms. This mid-year funding increase brings the 2024-25 total investment in relocatables to $58 million, providing 76 new relocatables to help alleviate space pressures in schools across the province.

“With Saskatchewan’s growing population, we recognize the need for additional classroom space to support students and educators,” Education Minister Everett Hindley said. “This additional investment will ensure schools that anticipate capacity challenges in 2025-26 have the necessary infrastructure to accommodate students.”

The majority of the relocatables will be allocated to the fastest growing cities of Regina and Saskatoon. In addition, the communities of Clavet, Corman Park, Humboldt, Lloydminster, Martensville, Pilot Butte, Warman, and Weyburn will receive relocatables to alleviate space pressures.

School divisions will proceed with procurement and target installation prior to September 2025.

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For more information, contact:

MIL OSI Canada News –

February 13, 2025
MIL-OSI Security: Pictou — Search Warrant leads to seizure of drugs, weapon
Source: Royal Canadian Mounted Police

The Pictou County Integrated Street Crime Enforcement Unit (PCISCEU) seized drugs and a weapon from a Pictou residence during a search warrant execution.

In December 2024, PICSCEU began investigating potential drug trafficking from a residence on Poplar St., Pictou.

On February 6, members of the PCISCEU, assisted by the Pictou County District RCMP, RCMP Police Dog Services, Pictou County District GIS, and Stellarton Police Service, executed a search warrant at the residence and seized cocaine, methamphetamine, and a bladed weapon.

Five people were arrested at the home, including:
- Emily Jessica Barker, 31, of Masstown
- Amanda Michelle Binder, 23, of Stellarton
- Amanda Leeanne Deyoung, 45, of New Glasgow
- Colin Martin Graham, 34, of Stellarton
- Jarom Elliott Merriam, 40, of Truro
All five have been charged with two counts each of Possession of a Controlled Substance for the Purpose of Trafficking and Possession of a Weapon for a Dangerous Purpose. They were released from custody pending a court appearance on April 14i n Pictou Provincial Court.

Nova Scotians are encouraged to contact their nearest RCMP detachment or local police to report crime, including the illegal sale of drugs, in their communities. Anonymous tips can be made by calling Nova Scotia Crime Stoppers, toll-free, at 1-800-222-TIPS (8477), submitting a secure web tip at www.crimestoppers.ns.ca, or using the P3 Tips app.

Note: The PCISCEU is made up of police officers from Pictou County District RCMP, Westville Police Service, and Stellarton Police Service.

MIL Security OSI –
February 13, 2025

Category: Canada

Georgia Dennis: a life of green perspectives

Deshma Weerapperuma: passionate about rocks and ripple effects

Olivia Wentzell: where wildlife meets waterways

The answer to “why us?”

Revving up for higher car costs

Increased prices are no yoke! (groan)

Wide consensus

Environmental challenges

Signing the first international treaty on AI

What does this really mean?

Quick facts

Related information – Biographies

What we already knew

What we found

1. A lack of support before and after removal

2. Devastating impact on relationships and wellbeing

3. Feeling powerless in the system

4. Harmful judgements and stereotypes

Where to from here?

Real-world energy savings

The need for broader participation

Room for improvement

Wide consensus

Environmental challenges

Signing the first international treaty on AI

What does this really mean?

Schools as foundations of reconstruction

Active pedagogy for European education

Ideological differences