CALGARY, ALBERTA -- (Marketwired) -- 07/04/13 -- Tourmaline Oil Corp. (TSX: TOU) ("Tourmaline" or the "Company") is pleased to announce that the Spirit River Charlie Lake oil and gas pool has evolved into a major new hybrid resource play with significant reserve and production upside. This major expansion of the Triassic Charlie Lake play combined with the successful consolidation of the associated prospective land opportunity have created a third major core operating area for the Company, complementing the NEBC Montney complex and the Alberta Deep Basin.
Through ongoing Charlie Lake pool expansion efforts at Spirit River over the past 18 months and 2013 regional Charlie Lake exploration successes, the Company has delineated a regional oil and gas accumulation with both structural and stratigraphic trapping elements. Tourmaline estimates that over 500 mmboe of light oil and natural gas along the defined fairway are potentially recoverable(1). The Company has drilled 43 successful Charlie Lake horizontal oil wells and no dry holes since horizontal exploitation commenced in late 2011. The most recent exploration well, approximately 40 miles from the main Spirit River pool, tested oil and gas at a stabilized rate of 700 boepd at the end of a 3 day production test. The most recent pool expansion well, 10 miles south of the main pool, tested at a stabilized rate of 650 boepd, during the past week. The 14-8-77-7W6 well, one of the first quarter 2013 pool expansion wells, has produced 105 mboe since March 17 (55.5 mboe oil, average 47% water cut, 297 mmcf gas) and is currently producing at 316 bbls/d oil and 2.5 mmcfpd gas. The Company has several additional regional Charlie Lake exploration wells planned over the next 12 months to both assess and expand the 75 mile long exploration fairway. A major land acquisition program has been underway for over 18 months on the greater Peace River High with approximately 410 sections of new land, prospective for the Triassic Charlie Lake, acquired by the Company. This region of the Peace River High is characterized by stacked, multiple objectives throughout the Mesozoic section. As the Company proceeds with the systematic regional Charlie Lake drilling program, numerous, less expansive uphole pool discoveries are anticipated.
Tourmaline has steadily improved its horizontal drilling and completion techniques for these complex Charlie Lake reservoirs. The improving per well deliverabilities and steadily decreasing capital costs have been an essential component of the overall play evolution. Drill, complete and stimulate costs have been reduced to approximately $3.6 million per horizontal, with average per well 2P reserve recoveries of 300-350 mstboe in the main pool. Tourmaline plans to run three rigs over the next 12 to 18 months pursuing these Charlie Lake horizontal targets, resulting in 70-75 new horizontals drilled by late 2014. The Company expects to attain the 10,000 boepd production level at Spirit River (5,000 bpd oil, 30 mmcfpd natural gas) by the fourth quarter of this year and believes that continued regional play success could allow the Company to more than double these production levels over the next two years. Tourmaline is proceeding with plans to build a new gas plant, capable of processing 60 mmcfpd, in the greater Spirit River area adding to existing Tourmaline owned oil and gas infrastructure. The Company is also developing plans to capture the significant, regional, natural gas liquids target, as the average liquid content in the associated gas stream is approximately 102 bbls/mmcf. Including the main Spirit River complex and the associated regional exploration lands, the Company now has a potential future drilling inventory of 750-1,000 locations.
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