Tourmaline Oil Corp. (TSX:TOU) ("Tourmaline" or the "Company") is pleased to announce three new extensive exploration and production ("EP") opportunities within its existing core complexes and provide an update on its EP activities.
NEW LIQUID-RICH OPPORTUNITIES
Liquid-rich Viking at Brazeau River
Tourmaline has been delineating a new extensive liquid-rich opportunity in the Brazeau River area at the south end of the Company's Deep Basin complex. The Company has brought on production eight liquid-rich Viking horizontals over the past two years. The average initial production ("IP") 30-day rate of these wells is 11.7 mmcfpd of natural gas, the average IP 365 day rate is 4.8 mmcfpd of natural gas, with average liquids production of 27.5 bbls/mmcf and drill and complete costs averaging $4.3 million. The type curve based on these eight producing wells indicates an internally estimated ultimate recovery ("EUR") of 5.1 bcf of sales gas and 146.5 mboe of condensate and NGL yielding an implied value of $10.5 million per well (net present value, discounted at 10%, before tax). The Company has a defined future inventory of approximately 60 additional horizontals, all of which can access Company operated infrastructure.
Liquid-rich Cardium at Hinton-Anderson-Lambert
Tourmaline's initial horizontal well into an extensive, liquid-rich, Cardium complex at Hinton-Anderson-Lambert has produced 1.6 bcf and 48,000 bbls of liquid (95% C5+) over the first 100 days of production, with the well being production constrained as it is only producing up tubing. Initial internal EURs are in excess of 10 bcf and 300 mboe of liquids for the 16-25-50-23W5M well, drill and complete costs were $3.5 million (1,500 m lateral, 30 stage completion). The Company plans 4-5 follow-up and delineation wells prior to year-end to further evaluate this potentially large gas/condensate complex, with a very large associated drilling inventory.
Peace River High Montney Oil
Tourmaline's most recent Lower Montney horizontal at Valhalla is currently producing at 1,540 boepd, 1,107 bpd of oil and 2.6 mmcfpd of natural gas after five days of production. Multiple follow-up wells are planned over the next few months with all of the incremental oil able to access Tourmaline's oil and gas processing facilities at Spirit River. The Company has a substantial inventory of Lower Montney horizontals on existing lands which will be further defined with the upcoming drilling program. The Lower Montney opportunity complements the new extensive Lower Charlie Lake development announced earlier this month (15 new wells on production, 284 future Lower Charlie Lake locations in inventory).
SECOND HALF ("2H") 2017 EP PROGRAM
Full-year 2017 annual EP capital spending of $1.33 billion remains unchanged and will generate approximately 30% production growth in 2017 and is anticipated to be funded with available cash flow. The Company plans to operate 18 rigs in 2H 2017, with an estimated 175 new wells completed and brought on production by year end. Q2 2017 production has averaged 240,000-245,000 boepd to date which is already within the full year average production guidance of 240,000-260,000 boepd. The Company will provide full Q2 production guidance after the magnitude of the third party firm transportation restrictions, currently planned for June, are better quantified.
ADDITIONAL EP HIGHLIGHTS
ABOUT TOURMALINE OIL CORP.
Tourmaline is a Canadian senior crude oil and natural gas exploration and production company focused on long-term growth through an aggressive exploration, development, production and acquisition program in the Western Canadian Sedimentary Basin.
SOURCE: Tourmaline Oil Corp.
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