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.
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.
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