CALGARY, ALBERTA--(Marketwired - Mar 17, 2014) - Tourmaline Oil Corp. ( TOU.TO ) ("Tourmaline" or the "Company") achieved exceptional growth in reserves (41%), production (47%) and cash flow(1) (88%) in 2013 while delivering strong profitability. The Company posted significant after-tax earnings of $148.1 million for the 2013 fiscal year.
- Record full year after tax earnings of $148.1 million ($0.79 per diluted share), an 854% increase over 2012, and record quarterly after tax earnings of $56.8 million in the fourth quarter, underscoring the fundamental full cycle profitability of Tourmaline's natural gas business.
- 2013 cash flow of $526.8 million ($2.80 per diluted share), an 88% increase over 2012 (67% per diluted share).
- Record quarterly cash flow of $160.7 million ($0.83 per diluted share) in Q4 2013.
- 2013 annual production growth of 47% (31% per diluted share), and forecast 2014 production growth of 60% over 2013.
- Q4 2013 average production of 86,089 boepd, a 50% increase over the fourth quarter of 2012 and a 16% increase over the previous quarter.
- Total 2P reserve additions of 179.4 mmboe in 2013, representing 41% growth over 2012 total 2P reserves before 2013 production (30% per diluted share).
- Year end 2013 2P reserve value of $6.2 billion (10% discount, before tax), representing 42% growth over year end 2012 2P reserve value of $4.3 billion, a net present value increase in 2013 of $1.9 billion vs. $1.7 billion in 2012.
- Three-year 2P finding, development and acquisitions cost (FD&A) of $11.65/boe (including FDC) and $7.20/boe (excluding FDC).
- 2013 reserve replacement ratio of 6.6 times.
- Continued industry-leading all-in cost structure of $7.72/boe (operating costs, transportation, general and administrative, and financing costs).
|1||Cash flow is defined as cash provided by operations before changes in non-cash operating working capital. See "Non-GAAP Financial Measures" in the attached Management's Discussion and Analysis.|
- Anticipated full year 2014 average production of 120,000 boepd represents a 60% increase from the 2013 average.
- The Company expects to tie-in approximately 48 wells during the first quarter of 2014, reaching estimated production levels of 115,000-120,000 boepd in late March/early April 2014.
- The Musreau plant expansion, Doe B.C. plant expansion and start-up of the Tourmaline Spirit River gas plant will lead to significant further production growth in the third quarter of 2014.
Alberta Deep Basin
- Tourmaline intends to operate 12 drilling rigs in the Alberta Deep Basin through the balance of 2014; the fleet will be shut down during break-up.
- 17 new Wilrich horizontals have been drilled thus far in 2014; a total of 55 new Wilrich horizontals which will be tied into Tourmaline facilities, are planned for full year 2014.
- The winter program has yielded five new high deliverability Wilrich horizontals in the Smoky-Horse-Berland areas including the Smoky 4-1-59-2W6 well with a 30-day average IP of 22.2 mmcfpd.
- Cretaceous Notikewin results have continued to exceed internal economic template expectations. The 30-day average IP from the Wild River 12-28-56-24W5 horizontal is 20.9 mmcfpd.
- The Company is expanding the Musreau gas plant by 50-55 mmcfpd with a Q3 2014 expected start-up and is also participating in a plant expansion at West Edson. Tourmaline expects to reach the 0.5 bcf/day production milestone in the Deep Basin in either late 2014 or early 2015.
NEBC Montney Gas/Condensate
- Tourmaline is currently operating two rigs in the NEBC Montney gas/condensate complex and will continue with drilling operations through break-up and the remainder of the year. The Company expects to drill 35 Montney horizontal wells in NEBC in 2014.
- The A5-5 and D5-5 condensate-rich Lower Montney discovery wells from late 2013 have 30-day IP rates of 6.3 mmcfpd and 634 bbls/day condensate (100.5 bbls/mmcfpd at wellhead) and 5.6 mmcfpd and 501 bbls/day condensate (89.5 bbls/mmcfpd at wellhead), respectively. One regional follow-up has been drilled and will be completed over the next month. Drilling on an adjacent multi-well follow-up pad to 5-5 has commenced and will continue through break-up. The Company acquired considerable acreage prospective for this new horizon in December 2013.
- The Doe gas plant expansion of 55 mmcfpd is planned for a Q3 2014 start-up. The Company expects to be producing 250 mmcfpd and 5,000-6,000 bbls/day of condensate and NGLs in NEBC by year end 2014.
Peace River High Charlie Lake Oil
- 14 new Charlie Lake horizontal oil wells have been drilled along the trend thus far in 2014; Tourmaline will continue to operate three drilling rigs during 2014, yielding approximately 45 new wells. The Company has now drilled 72 successful horizontal oil wells into the regional pool with no dry holes to date.
- Two concurrently-completed dual well pairs are currently being stimulated and will be brought on-stream by break-up.
- Current daily production from the complex is averaging 9,000 10,000 boepd; an additional 6,000 boepd of production remains shut-in at Spirit River.
- The Tourmaline sour gas injection plant at Spirit River remains on schedule for a Q3 2014 start-up and construction of the Mulligan oil battery will commence during the third quarter as well.
- The Company is targeting a 2014 exit volume of 18,000 - 20,000 boepd from the Peace River High Charlie Lake Complex with these new facilities on-stream.
- The Paleozoic Exploration test at Sunset 11-17 in NEBC was cased to total depth during the first quarter of 2014, with 3 gas pay zones to complete. Completion operations will commence in July as the higher pressure equipment required to safely conduct operations could not be secured in time to finish operations prior to break-up.
- The Company's first Montney horizontal in the Resthaven-Kakwa gas-condensate play area is currently being completed and stimulated.
- The Smoky 8-15 deep test has been drilled to the Cambrian and cased to total depth; there are multiple deep gas zones to be completed.
- 2014 full year cash flow forecast of $1.0 billion, representing a 92% increase over 2013 cash flow, is driven primarily by the combination of growth in production volumes and stronger natural gas prices.
- 2013 full year operating netbacks(2) of $20.37/boe increased 25% over the prior year.
- Maintained low overall cash costs by continuing to drive down unit operating costs to $4.35/boe.
- Year end 2013 net debt(3) at $832.9 million, subsequently reduced in February 2014 as a result of 4.6 million common shares issued for gross proceeds of $219.2 million.
- 2013 cash consideration invested in capital expenditures (net of dispositions) was $1.3 billion which included drilling 129 gross wells and investing $43.0 million in land and seismic to acquire 146 sections (net) of undeveloped land. In addition, $386.6 million was spent in part to expand two Deep Basin gas plants and construct a new gas plant in NEBC, bringing total throughput capacity for the Company to approximately 600 mmcfpd. Multiple property acquisitions in Spirit River, NEBC and the Alberta Deep Basin were completed for $226.9 million (515 net sections). During the year, the Company also disposed of non-core assets for cash proceeds of $78.1 million.
|2||Operating netback is calculated on a per-boe basis and is defined as revenue (excluding processing income) less royalties, transportation costs and operating expenses. See "Non-GAAP Financial Measures" in the attached Management's Discussion and Analysis.|
|3||Net debt is defined as long-term debt plus working capital (adjusted for the fair value of financial instruments). See "Non-GAAP Financial Measures" in the attached Management's Discussion ...|