TOURMALINE OIL CORP. ANNOUNCES DAILY PRODUCTION REACHES 30,000 BOEPD
CALGARY, ALBERTA–(April 13, 2011)
Tourmaline Oil Corp. (TSX:TOU) (“Tourmaline” or the “Company”) is pleased to report that its two large Q1 2011 facility projects, the Minehead Alberta gas plant and the Dawson BC pipeline interconnect have been completed and started up over the past 10 days. With the wells brought on-stream by these projects, overall production levels now exceed the 30,000 boepd milestone, in excess of original second quarter 2011 estimates of 27,500 boepd. Several additional tie-ins to the new facilities will be completed during the remainder of April. The Company will observe production performance from the new projects over the next several weeks prior to increasing full year 2011
production and cash flow guidance.
The first quarter EP Program continued to deliver strong results. In addition to the high rate oil wells at Spirit River Alberta and the high deliverability new pool discovery at Cabin Creek – Solomon announced on March 24, the Company completed testing of an additional Solomon-Smoky new pool wildcat discovery and a significant step-out well at Hinton-Anderson. The second Solomon-Smoky multi-objective discovery tested liquid rich natural gas at final rates of 7.0 mmcfpd at a flowing tubing pressure of 11.2 MPa from a vertical well. The Hinton-Anderson step-out tested natural gas at a final rate of 11.9 mmcfpd at flowing tubing pressure of 10.01 MPa, also from a vertical wellbore. Both of these high rate wells are anticipated to be tied in during the second quarter. The Company has an extensive inventory of follow-up locations to these recent new pool discoveries, a subset of the overall Deep Basin vertical development drilling inventory of 3,100 locations.
Certain information set forth in this document, including management’s assessment of the Company’s future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar expressions are intended to identify forward looking statements. Such statements represent Tourmaline’s internal projections, estimates or beliefs concerning, among other things, an outlook on the estimated amounts and timing of capital investment, anticipated future production, revenues, cash flow or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. In particular, this document contains forward-looking statements pertaining to an anticipated increase in the Company’s 2011 production and cash flow guidance. With respect to forward-looking statements contained in this document, the Corporation has made certain assumptions regarding, among other things, the performance of the Minehead Alberta gas plant and the Dawson BC pipeline interconnect and the associated wells and facilities and the Company’s ongoing EP program. The forward-looking statements contained in this document are only predictions and actual events or results may differ materially. Tourmaline 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 Tourmaline’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Tourmaline.
These forward-looking statements are subject to numerous risks and uncertainties, most of which are beyond the Company’s control, including the impact of general economic conditions; volatility in market prices for crude oil, NGL and natural gas; industry conditions; currency fluctuation; 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, each of which could result in substantial damage to wells, production facilities, other property and the environment or in personal injury; stock market volatility; ability to access sufficient capital from internal and external sources; the receipt of applicable approvals; and the other risks considered under “Risk Factors” and “Forward-Looking Statements” in Tourmaline’s most recent annual information form available at www.sedar.com.
Management has included the above summary of assumptions and risks related to forward-looking information provided in this Press Release in order to provide shareholders with a more complete perspective on Tourmaline’s future operations and such information may not be appropriate for other purposes. Tourmaline’s 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 there from. Readers are cautioned that the foregoing lists of factors are not exhaustive.
Readers are cautioned not to place undue reliance on these forward-looking statements, which are given as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. Boe Conversions – Per barrel of oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent (6:1). Barrel of oil equivalents (boe) 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.
ABOUT TOURMALINE OIL CORP.
Tourmaline is a Canadian intermediate 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
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