Current production has reached 47,000 boepd, achieving the
original full year 2012 average production target ahead of
schedule. Ongoing tie-ins during the next week are expected
to increase production levels to 50,000 boepd or greater.
Current oil, condensate and natural gas liquids production is
approximately
6,500 boepd, and is expected to reach the 10,000 boepd level
by the fourth quarter of 2012. Driven by continued strong
drilling results and field execution, full year 2012 average
production guidance has been increased to 50,000 boepd.
Tourmaline's year over year 2012 vs 2011 average production
growth is now well in excess of 50%.
Given the current natural gas price environment, the Company
is reducing planned 2012 capital spending to $400 million,
down from the originally planned $490 million. First quarter
2012 capital spending of
$150.0 million is currently anticipated. Full year 2012
forecast cash flow is $429.6 million, down from original 2012
guidance of $440.7 million. Lower natural gas prices,
partially offset by increased production levels and a higher
proportion of oil and liquids, are responsible for the
modestly reduced cash
flow.
Tourmaline has maintained a strong balance sheet and expects
ongoing net debt to cash flow ratios to remain in the six to
eight month range.
Tourmaline's ongoing drilling and completion results continue
to significantly exceed type curve expectation in all
operated areas. Recent production test1
highlights from the December-January period include:
• Kakwa 13-25 Wilrich horizontal tested liquids rich gas at
average rates of 22.8 mmcfpd at a flowing pressure of 18.5
MPa.
• Sunrise b4-25 and c4-25 tested liquids rich Montney gas at
average rates of 24.2 and 28.9 mmcfpd, respectively.
• The Spirit River 15-4 Charlie Lake horizontal tested oil at
average rates of 650 bopd with 1.0 mmcfpd of associated
gas.
• Anderson 8-6 vertical tested liquids rich gas from the
Notikewin-Falher-Wilrich section at average rates of 10.1
mmcfpd at a flowing pressure of 3.3 MPa.
1 Three day tests or longer. Production tests are not necessarily indicative of long-term performance or ultimate recovery.
2
• Wild River 13-25 Wilrich horizontal tested liquids rich gas
at rates of 13.8 mmcfpd at a flowing pressure of 5.9 MPa.
The Company is currently operating nine drilling rigs; the
operated fleet will be reduced to six rigs by early March
2012. Tourmaline is not planning to operate drilling rigs
during break-up in the second quarter this year; drilling
operations will resume in July. Tourmaline will move a second
rig into Spirit River in February accelerating development of
the expanding horizontal light oil opportunity there.
With the start-up of the Musreau plant and expanded Sunrise
gas plant, the majority of the ongoing infrastructure
construction plan is complete; hence, facility expenditures
will be significantly lower in
2012. Tourmaline now has processing capacity of 275-300
mmcfpd in the Alberta Deep Basin and 75
mmcfpd in the Dawson-Sunrise BC complex. This owned and
operated gas plant and pipeline network allows the Company to
realize steadily lower operating costs and improving
production efficiencies.
Tourmaline's updated corporate presentation is available on
its website @ www.tourmalineoil.com.
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.
Non-IFRS MeasuresThis news release includes references to financial measures commonly used in the oil and gas industry such as "cash flow" and "net debt", which do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS"). Management believes that in addition to net income, cash flow and net debt are useful supplemental measures as they are a measure of a company's ability to generate the cash necessary to repay debt or fund future growth through capital investment. However, investors are cautioned that these measures should not be construed as an alternative to net income determined in accordance with IFRS as an indication of Tourmaline performance. The method of calculating these measures may differ from other companies and, accordingly, they may not be comparable to similar measures used by other companies. For these purposes, "cash flow" is defined as cash provided by operations before changes in non-cash working capital and "net debt" is defined as long- term bank debt plus working capital (adjusted for the fair value of financial instruments and future taxes).
Forward-Looking Information
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, capital spending levels and the timing
thereof, anticipated cash flow levels and debt to cash flow
ratios, the number of drilling rigs to be operated, facility
expenditure levels, operating costs and production
efficiencies 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
3
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.
Also included in this press release are estimates of
Tourmaline's 2012 cash flow, which are based on the
various assumptions as to production levels, capital
expenditures, and other assumptions disclosed in this press
release and including commodity price assumptions (Gas: AECO
- $3.25/mcf and Oil: WTI - $100
US) as well as exchange rate assumptions of $0.98 (US/CDN).
To the extent such estimates constitute a financial outlook,
they were approved by management of Tourmaline on January 20,
2012 and are included to provide readers with an
understanding of Tourmaline's anticipated cash flow
based on the capital expenditures and other assumptions
described herein and readers are cautioned that the
information may not be appropriate for other purposes.
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. 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.
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; and MPa means
megapascals.
4
For further information, please contact: Tourmaline Oil
Corp.
Michael Rose
Chairman, President and Chief Executive Officer
(403) 266-5992; rose@tourmalineoil.comOR
Tourmaline Oil Corp. Brian Robinson
Vice President, Finance and Chief Financial Officer
(403) 767-3587; robinson@tourmalineoil.comOR
Tourmaline Oil Corp. Scott Kirker
Secretary and General Counsel
(403) 767-3593; kirker@tourmalineoil.comOR
Tourmaline Oil Corp.
Suite 3700, 250 - 6th Avenue S.W. Calgary, Alberta T2P
3H7
Phone: (403) 266-5992
Facsimile: (403) 266-5952 www.tourmalineoil.com
distribué par | Ce noodl a été diffusé par Tourmaline Oil Corp. et initialement mise en ligne sur le site http://www.tourmalineoil.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-25 15:19:12 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
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