TOURMALINE UPDATES Q2 2017 ACTIVITIES
Calgary, Alberta – Tourmaline Oil Corp. (TSX:TOU) (“Tourmaline” or the “Company”) is pleased to provide an update on its EP activities.
The Company is currently operating 10 drilling rigs and will ramp to the full 18 rig fleet during the first half of July. Frac operations are underway on 4 of the 8 pads drilled during spring break-up. Approximately 175 new wells will be tied-in during the second half of 2017, across all three core complexes.
Significant production curtailments on all three transportation systems utilized by the Company reduced June and quarterly average volumes from the record levels achieved in April and May. The Company is still expecting record average Q2 2017 production volumes in the 235,000-240,000 boepd range. The Company remains on track to comfortably achieve full-year 2017 production guidance of 240,000-260,000 boepd; Tourmaline anticipates reaching the 250,000 boepd production milestone during the second half of August 2017.
During June, there were zero days not affected by a production restriction in one or all of the Company’s three core complexes. The planned outages on TCPL and Spectra/Enbridge were both extended longer than originally estimated and the unplanned shutdown on the Alliance system further reduced monthly volumes. The simultaneous curtailments on Spectra and TCPL for 12 days in June reduced the Company’s usual ability to transfer gas volumes between systems mitigating the impact of a restriction on any one system. Tourmaline’s planned, own account shutdown and turnaround of the entire Peace River High oil complex, timed to coincide with the planned third-party outages in June, also took four days longer than estimated. Almost all of the shut-in volumes were back on-stream by the end of June.
Cash flow, capital spending and cash costs are better or as anticipated for the second quarter. The Company estimates that its first half EP program is balanced with available cash flows from the first six months and Tourmaline continues to execute a full-year EP capital budget equal to cash flow, generating annual production growth of approximately 30% in 2017. The Company will continue to pursue all opportunities within the EP portfolio to optimize already strong full-cycle returns.
All amounts in this news release are stated in Canadian dollars unless otherwise specified.
This news release contains forward-looking information within the meaning of applicable securities laws. The use of any of the words “forecast”, “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 news release contains forward-looking information concerning Tourmaline’s plans and other aspects of its anticipated future operations, management focus,objectives, strategies, financial, operating and production results and business opportunities, including anticipated petroleum and natural gas production for various periods, drilling inventory or locations, cash flow, the net present value of future net reserves related to certain of the Company’s wells, capital spending, cost reduction initiatives, projected operating and drilling costs, the timing for facility expansions and facility start-up dates, as well as Tourmaline’s future drilling prospects and plans, 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; interest rates; future well production rates and reserve volumes; operating costs; the timing of receipt of regulatory approvals; the performance of existing and future wells; the success obtained in drilling new wells; anticipated timing and results of capital expenditures; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the successful completion of acquisitions and dispositions; the state of the economy and the exploration and production business; the availability and cost of financing, labour and services; and ability to market crude oil, natural gas and NGL successfully.
Although Tourmaline believes that the expectations and assumptions on which such forward-looking information is based are reasonable, 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, revenues, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; interest rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to complete or realize the anticipated benefits of acquisitions or dispositions; 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, are included in the Company’s most recently filed Management’s Discussion and Analysis (See “Forward-Looking Statements” therein), Annual Information Form (See “Risk Factors” and “Forward-Looking Statements” therein) and other reports 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 news 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.
In this news release, production and reserves information may be presented on a “barrel of oil equivalent” or “boe” basis. Boe’s 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 addition, as the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil 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.
- bbl – barrel
- bbls/day – barrels per day
- bbl/mmcf – barrels per million cubic feet
- bcf – billion cubic feet
- bcfe – billion cubic feet equivalent
- bpd or bbl/d – barrels per day
- boe – barrel of oil equivalent
- boepd or boe/d – barrel of oil equivalent per day
- bopd or bbl/d – barrel of oil, condensate or liquids per day
- DUC – drilled but uncompleted wells
- EUR – estimated ultimate recovery
- FCP – final circulating pressure
- gj – gigajoule
- gjs/d – gigajoules per day
- mbbls – thousand barrels
- mmbbls – million barrels
- mboe – thousand barrels of oil equivalent
- mcf – thousand cubic feet
- mcfpd or mcf/d – thousand cubic feet per day
- mcfe – thousand cubic feet equivalent
- mmboe – million barrels of oil equivalent
- mmbtu – million British thermal units
- mmbtu/d – million British thermal units per day
- mmcf – million cubic feet
- mmcfpd or mmcf/d – million cubic feet per day
- MPa – megapascal
- mstboe – thousand stock tank barrels of oil equivalent
- NGL or NGLs – natural gas liquids
ABOUT TOURMALINE OIL CORP.
Tourmaline is a Canadian senior crude oil and natural gas exploration and production company focused on longterm growth through an aggressive exploration, development, production and acquisition program in the Western Canadian Sedimentary Basin.
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; firstname.lastname@example.org
Tourmaline Oil Corp.
Secretary and General Counsel
(403) 767-3593; email@example.com
Tourmaline Oil Corp.
Suite 3700, 250 – 6th Avenue S.W.
Calgary, Alberta T2P 3H7
Phone: (403) 266-5992
Facsimile: (403) 266-5952