Tamarack Valley Energy Ltd. Provides a Production and Drilling
Update
CALGARY, ALBERTA--(Marketwired - Dec 18, 2013) - Tamarack Valley
Energy Ltd. (TSX-VENTURE:TVE) ("Tamarack" or the "Company") is
pleased to announce the following production and drilling
update.
Production Update
Tamarack is pleased to announce that based on field production
estimates for November 2013, the Company averaged 4,473 boe/d
(approximately 59% liquids) exceeding its guidance exit production
rate of 4,200 to 4,300 boe/d. The Company remains on target to
achieve its 2013 average production guidance of 3,150 to 3,250
boe/d.
Cardium Drilling Update
Tamarack successfully drilled its first 2-mile horizontal
Cardium oil well in the Buck Lake area of Alberta. The 2-mile Buck
Lake well was successfully stimulated with a 30-stage slick water
fracture treatment. During its first 30 days on production, based
on field estimates, the well averaged 367 boe/d consisting of 296
bbls/d (222 net) of oil and natural gas liquids and 423 mcf/d (317
net) natural gas. Initially constrained by its lifting equipment
during its first 40 days on production, the well was re-equipped
with an optimized bottom hole pumping assembly to handle a lower
gas/oil ratio. Since the constraint was lifted, based on field
estimates, the well has averaged 375 boe/d consisting of 305 bbls/d
(228 net) of oil and natural gas liquids and 420 mcf/d (315 net)
natural gas over the past 6 days. The 2-mile well has produced at a
higher oil rate than originally expected and the well has not shown
any meaningful decline to date. The second month liquid production
rate is currently over double (224% higher), compared to the two
offsetting 1-mile wells that Tamarack drilled in late 2011 and
early 2012.
In August, 2013 Tamarack entered into a farm-in agreement with
an industry major whereby it gained access to 113,280 gross (72,320
net) acres of farm-in lands. Tamarack is pleased to announce that
it has exceeded its initial drilling obligation under the terms of
the farm-in agreement, to drill 3.5 net earning wells by the end of
March 31, 2014. Tamarack has completed drilling 5 (4.2 net) wells
and expects to have 5 net earning wells drilled towards the farm-in
commitment by December 31, 2013. These wells are at varying stages
of drilling, completing and installation of permanent facilities.
Tamarack will provide an operational update on area results in the
first quarter of 2014.
Tamarack is planning to drill up to another 11 (5.34 net)
Cardium wells on the farm-in lands and in the Garrington and Buck
Lake areas during the first quarter of 2014.
Viking Oil Drilling Update
Tamarack is pleased to announce it has completed its fourth
quarter Viking oil drilling program on its expanded Redwater
inventory of approximately 200 horizontal locations. Tamarack
drilled 8 (5.8 net) Viking oil wells at Redwater, during the fourth
quarter, capitalizing on Tamarack's operational experience in the
area. Five of the eight wells have been brought on production since
November 19, 2013 with early production averages in line with the
Company's 30 day type curve for the area of 60-65 bbls/d. Since our
entrance into Redwater Viking oil play, Tamarack has reduced its
all-in capital costs by approximately 40% to less than $1.0 million
per well with future reductions expected through scale of future
drilling programs and capitalizing on infrastructure synergies.
About Tamarack Valley Energy Ltd.
Tamarack is an oil and gas exploration and production company
committed to long-term growth and the increased identification,
evaluation and operation of resource plays in the Western Canadian
sedimentary basin. Tamarack's strategic direction is focused on two
key principles - ensuring resource plays provide long-life reserves
and using a rigorous, proven modeling process to carefully manage
risk and identify opportunities. The Company recently expanded its
inventory of low-risk development oil locations in the Redwater
Viking play through the acquisition of Sure Energy Inc. Continuing
to build on its sustainable growth platform, Tamarack also
increased its low-risk development locations within the Cardium
fairway through a farm-in agreement with an industry major. These
endeavors add to Tamarack's strong resource portfolio, including
Cardium properties at Lochend, Garrington and Buck Lake and heavy
oil properties in Saskatchewan. With a balanced portfolio and
experienced, committed management team, Tamarack intends to
continue to deliver on its promise to increase its production, oil
weighting and maximize shareholder return.
Abbreviations
bbl |
Barrel |
bbls/d |
barrels per day |
boe/d |
barrels of oil equivalent per day |
mcf |
thousand cubic feet |
mcf/d |
thousand cubic feet per day |
Unit Cost
Calculation
For the purpose of
calculating unit costs, natural gas volumes have been converted to
a barrel of oil equivalent ("boe") using six thousand cubic feet
equal to one barrel unless otherwise stated. A boe conversion ratio
of 6:1 is based upon an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead. This conversion conforms with
Canadian Securities Regulators' National Instrument 51-101
Standards of Disclosure for Oil and Gas Activities. Boe's may be
misleading, particularly if used in isolation.
Forward Looking
Information
This press release
contains certain forward-looking information (collectively referred
to herein as "forward-looking statements") within the meaning of
applicable Canadian securities laws. Forward-looking statements are
often, but not always, identified by the use of words such as
"anticipate", "believe", "plan", "potential", "intend",
"objective", "continuous", "ongoing", "encouraging", "estimate",
"expect", "may", "will", "project", "should", or similar words
suggesting future outcomes. More particularly, this press release
contains statements concerning Tamarack's future drilling plans,
operations and expected production levels for 2013 and Tamarack's
ability to continue to reduce costs in the future. The
forward-looking statements contained in this document are based on
certain key expectations and assumptions made by Tamarack relating
to prevailing commodity prices, the availability of drilling rigs
and other oilfield services, the timing of past operations and
activities in the planned areas of focus, the drilling, completion
and tie-in of wells being completed as planned, the production
performance of new and existing wells, the application of existing
drilling and fracturing techniques, the continued availability of
capital and skilled personnel, surface access to leases, the
ability to continue to deliver crude oil and natural gas to market,
the ability to maintain or grow the banking facilities, the
accuracy of Tamarack's geological interpretation of its drilling
and land opportunities and Tamarack's ability to realize the
anticipated growth opportunities and operational synergies.
Although management considers these assumptions to be reasonable
based on information currently available to it, undue reliance
should not be placed on the forward-looking statements because
Tamarack can give no assurances that they may prove to be
correct.
By their very
nature, forward-looking statements are subject to certain risks and
uncertainties (both general and specific) that could cause actual
events or outcomes to differ materially from those anticipated or
implied by such forward-looking statements. These risks and
uncertainties include, but are not limited to: risks associated
with the oil and gas industry (e.g. operational risks in
development, exploration and production; delays or changes in plans
with respect to exploration or development projects or capital
expenditures); commodity prices; the uncertainty of estimates and
projections relating to production, cash generation, costs and
expenses; health, safety, litigation and environmental risks; and
access to capital. Due to the nature of the oil and natural gas
industry, drilling plans and operational activities may be delayed
or modified to react to market conditions, results of past
operations, regulatory approvals or availability of services
causing results to be delayed. Please refer to Tamarack's revised
Annual Information Form ("AIF") dated March 27, 2013 for additional
risk factors relating to Tamarack. The AIF is available for viewing
under the Company's profile on www.sedar.com.
The forward-looking
statements contained in this press release are made as of the date
hereof and the Company does not undertake any obligation to update
publicly or to revise any of the included forward-looking
statements, except as required by applicable law. The
forward-looking statements contained herein are expressly qualified
by this cautionary statement.
Tamarack Valley Energy Ltd.Brian SchmidtPresident &
CEO403.263.4440Tamarack Valley Energy Ltd.Ron HozjanVP Finance
& CFO403.263.4440www.tamarackvalley.ca
(TSXV:TVE)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
(TSXV:TVE)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024