TOURMALINE OIL CORP. PROVIDES OPERATIONAL UPDATE
Calgary, Alberta – Tourmaline Oil Corp. (TSX – TOU) (“Tourmaline”) is pleased to provide the following operational update.
- Spirit River Charlie Lake horizontal well production tests oil at 1,550 bopd
- A single 3 well Montney pad in Sunrise-Dawson production tests at 50 mmcfpd
Current production is ranging between 39,000 and 40,000 boepd and the Company remains on track to achieve 2011 exit production volumes of 44,500 boepd. The Sunrise 3-18 plant expansion and the Musreau 3-18 plant are both expected to be completed and on-stream by mid-December 2011. With 51 wells to tie-in between December 1, 2011 and March 31, 2012, Tourmaline is in a strong position to meet or exceed previously upwards revised 2012 full year average production guidance of 47,000 boepd. Current oil and liquids production is averaging between 4,500 and 5,000 bopd, up from the third quarter 2011 average of 3,444 bopd. Tourmaline expects oil and liquids production to constitute approximately 20% of total Company production by Q4 2012.
Q4 EP Results
Tourmaline is pleased to announce record well results in all of its core operated areas incremental to the suite of results announced in September 2011. Tourmaline’s widespread application of 3D seismic to select all drilling locations and continued improvement of completion technologies is leading to these increasingly strong well results.
Spirit River – The Company’s most recent Triassic Charlie Lake horizontal, the eleventh drilled to date, tested oil at a flowing stabilized rate of 1,550 bopd with associated gas at a rate of 1.9 mmcfpd. Tourmaline is planning to have 14 horizontals drilled and completed by year end 2011. Recent ongoing vertical and horizontal delineation drilling has indicated that the Charlie Lake oil pool is significantly larger than originally mapped, Tourmaline controls this expanded pool area at 100% working interest. Spirit River will be a key focus area with the 2012 EP program.
Deep Basin Horizontal Program – Tourmaline currently has four drilling rigs drilling Deep Basin horizontals, targeting the Cretaceous Cardium, Notikewan-Falher and Wilrich formations. Fourth quarter 2011 individual well highlights include:
- Wildhay-Wroe Notikewan hz; 14.6 mmcfpd @ 18.1 MPa
- Greater Minehead Wilrich hz; 13.0 mmcfpd @ 8.5 MPa with 100 bpd free condensate plus
- Sundance Wilrich hz; 6.7 mmcfpd on stabilized in-line production test
Tourmaline expects to drill an additional 25 Deep Basin horizontal wells between December 2011 and Spring break-up 2012.2.
In addition the Solomon 2-13 vertical well, along the Western trend of high deliverability 3D defined vertical targets, tested at 7.0 mmcfpd with liquids from the Falher-Wilrich section.
Sunrise-Dawson NEBC – Tourmaline continues to systematically develop the extensive Triassic Montney horizontal gas-condensate inventory at Sunrise-Dawson with increasingly higher well deliverabilities. Fourth quarter individual well highlights include:
- Sunrise a12-13; production tested at a stabilized rate of 15.0 mmcfpd
- Sunrise 12-24 Pad; production tested the initial 3 horizontal wells on the pad at a combined rate
of 50.0 mmcfpd in November. The initial 12-24 pad wells will be tied into the expanded Sunrise
plant during December. An additional 3 wells will be drilled off the same pad during 2012.
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.
This press release contains forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information. More particularly and without limitation, this press release contains forward looking information concerning Tourmaline’s anticipated petroleum and natural gas production, production growth and production mix, the timing for plant expansions to be completed, the size of the Charlie Lake oil pool, the number of drilling rigs to be operated, as well as Tourmaline’s future drilling prospects and plans, including the number and type of wells to be drilled in core areas, business strategy, future development and growth opportunities, prospects and asset base. The forward-looking information is based on certain key expectations and assumptions made by Tourmaline, including expectations and assumptions concerning: prevailing commodity prices and currency exchange rates; applicable royalty rates and tax laws; future well production rates and reserve volumes; the timing of receipt of regulatory approvals; the performance of existing wells and recently drilled and tested wells; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; and the availability and cost of labour and services. Undue reliance should not be placed on the forward-looking information because Tourmaline can give no assurances that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and currency exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations. Readers are cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could affect Tourmaline, or its operations or financial results, can be found in Tourmaline’s most recent Annual Information Form and Annual and Quarterly Management’s Discussion and Analysis on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or Tourmaline’s website (www.tourmalineoil.com).
The forward-looking information contained in this press release is made as of the date hereof and Tourmaline undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless expressly required by applicable securities laws.
Disclosure provided in respect of barrels of oil equivalent (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.
In this press release: boepd means boe per day; mcf means thousand cubic feet, bbl means barrel; bopd means barrels per day; mmcf means million cubic feet; mmcfpd means million cubic feet per day; mboe means thousand boes; MPa means megapascals; and hz means horizontal.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tourmaline Oil Corp.
Chairman, President and Chief Executive Officer
Tourmaline Oil Corp.
Vice President, Finance and Chief Financial Officer
(403) 767-3587; email@example.com
Tourmaline Oil Corp.
Secretary and General Counsel
(403) 767-3593; firstname.lastname@example.org
Tourmaline Oil Corp.
Suite 3700, 250 – 6th Avenue S.W.
Calgary, Alberta T2P 3H7
Phone: (403) 266-5992
Facsimile: (403) 266-5952