CALGARY, AB–(Marketwired – January 04, 2016) – Tourmaline Oil Corp. (TSX: TOU) (“Tourmaline” or the “Company”) is pleased to update fourth quarter 2015 operating and financial performance. The Company has further reduced the 1H 2016 capital spending program.
PRODUCTION UPDATE
Q4 2015 PERFORMANCE
LIQUIDS BUSINESS GROWTH
2016 EP CAPITAL PROGRAM
ENVIRONMENTAL PERFORMANCE
Reader Advisories
CURRENCY
All amounts in this news release are stated in Canadian dollars unless otherwise specified.
FORWARD-LOOKING INFORMATION
This press 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,” “could,” “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 plans and other aspects of its anticipated future operations, management focus, objectives, strategies, financial, operating and production results and business opportunities, including as at and for various future periods, anticipated petroleum and natural gas production, cash flows, capital spending, projected operating and drilling costs, drilling programs and the number of rigs to be operated for such purpose, the timing for facility expansions and facility start-up dates, tie-in of production, as well as Tourmaline’s future drilling prospects and plans, including the quantity of future drilling locations in inventory, business strategy, future development and growth opportunities and 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 and future 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 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 availability and cost of labour and services; the state of the economy and the exploration and production business; the availability and cost of financing; and ability to market and transport oil and natural gas successfully.
Statements relating to “reserves” are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future.
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, 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; reliance on third parties; 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 2016 capital spending and minimum cash flow levels, which are based on the various assumptions as to production levels, including estimated average production of 200,000 boepd for 2016, capital expenditures, and other assumptions disclosed in this press release and including commodity price assumptions for natural gas (AECO — $3.25/mcf for 2016), and crude oil (WTI (US) — $62.50/bbl for 2016) and an exchange rate assumption of (US/CAD — $0.80 for 2016). To the extent any such estimate constitutes a financial outlook, it was approved by management and the Board of Directors of Tourmaline on January 4, 2016 and is included to provide readers with an understanding of the funding of Tourmaline’s capital expenditure program in 2016 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, 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 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.
Additional Reader Advisories
BOE CONVERSIONS
Boes 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 6:1 conversion basis may be misleading as an indication of value.
PRODUCTION TESTS
Any references in this release to initial production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue to produce and decline thereafter and are not necessarily indicative of long-term performance or ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Such rates are based on field estimates and may be based on limited data available at this time.
NON-GAAP FINANCIAL MEASURES
This press release includes references to a financial measure commonly used in the oil and gas industry, “cash flow,” which does not have a standardized meaning prescribed by International Financial Reporting Standards (“GAAP”). Accordingly, the Company’s use of this term may not be comparable to similarly defined measures presented by other companies. Management uses the term “cash flow” for its own performance measures and to provide shareholders and potential investors with a measurement of the Company’s ability to generate the cash necessary to fund a portion of its future growth expenditures or to repay debt. Readers are cautioned that the non-GAAP measures should not be construed as an alternative to net income determined in accordance with GAAP as an indication of the Company’s performance. See “Non-GAAP Financial Measures” in the Company’s most recently-filed Management’s Discussion and Analysis for the definition and description of this term.
ESTIMATED DRILLING INVENTORY
This press release discloses drilling locations which are unbooked. Unbooked locations are internal estimates based on the Company’s prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves or resources (including contingent and prospective). Unbooked locations have been identified by management as an estimation of the Company’s multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that the Company will drill all unbooked drilling locations and, if drilled, there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which the Company will actually drill wells, including the number and timing thereof is ultimately dependent upon the availability of funding, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been derisked by drilling existing wells in relative close proximity to such unbooked drilling locations, the majority of other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and, if drilled, there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.
CERTAIN DEFINITIONS:
bbl | barrel | |
bbls/day | barrels per day | |
bbl/mmcf | barrels per million cubic feet | |
bcf | billion cubic feet | |
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 | |
gj | gigajoule | |
gjs/d | gigajoules per day | |
mbbls | thousand 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 | natural gas liquids |
ABOUT TOURMALINE OIL CORP.
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.
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