-- The 100,000 boepd 2013 production exit volume is expected to be reached and exceeded during the fourth quarter.-- 2014 production guidance increased to between 116,000 and 120,000 boepd.-- The Company continues to successfully delineate and expand the major new light oil resource play in the Charlie Lake Formation on the Peace River High.-- Significant strategic acquisitions thus far in 2013 to the Alberta Deep Basin asset base.-- Tourmaline is currently operating 15 drilling rigs and 8-9 frac spreads, ahead of forecast activity levels.-- The initial large pool Paleozoic Exploration well is currently drilling at Sunset BC.-- Strategy to grow a 50,000 bpd TOU liquids business by late 2016 well under way.
Tourmaline remains on track to achieve the upwards revised full year production guidance of 80,000 boepd, representing 57% year over year growth. The Company has tied in 8 wells during the past 3 weeks and expects to tie in a further 11 wells in all three core operated areas prior to the end of September. A further 55 tie-ins/production start-ups during the fourth quarter, combined with the Deep Basin plant expansions at Wild River and Minehead/Banshee will generate 2013 exit volumes in excess of 100,000 boepd. Current production volumes are estimated to be 82,000 boepd with an additional 9,000 boepd expected to be on stream by the end of September. The expanded 2H 2013 drilling program and the Deep Basin acquisitions will lead to an increase in 2014 average production guidance to between 116,000 and 120,000 boepd.
Alberta Deep Basin Expansion
During 2013 Tourmaline has significantly increased the overall asset base in the Alberta Deep Basin. In aggregate, including a transaction that will close at the end of September, the Company has added 148 sections of additional acreage to the existing Deep Basin land position of over 1,800 sections. Thus far in 2013, five separate asset purchases have been completed or are pending, as well as acquisitions at multiple crown land sales. The asset base expansion has targeted the Cretaceous Wilrich formation where the Company continues to deliver very strong horizontal well results from the six rigs currently pursuing Wilrich targets. A total of approximately 125 new horizontal locations have been added to the existing horizontal inventory of over 3,600 locations, including key inventory additions in the Kakwa, Smoky-Horse, Edson and the Lovett-Hanlan areas where Wilrich results have consistently exceeded expectations. In total these acquisitions will add approximately 4,000 boepd of existing production which will contribute to overall corporate production volumes in the fourth quarter. Total incremental capital spending for the 2013 Deep Basin asset expansion program is $125.0 million through to the end of September.
The initial Wilrich horizontal in the Lovett-Basing frontal foothills setting tested at a final gas rate of 25.5 mmcfpd @ 7.8 MPa from a 900m lateral section. Three to four similar Wilrich horizontals in this area are planned prior to year end as the Company continues to evaluate this subset of the overall Wilrich inventory.