ENP Newswire -
Release date- 12082014 -
With the success of Tamarack's first half drilling program, well results being ahead of budget, and the strength of cash flow the Company has increased the 2014 capital program by
Second Quarter 2014 Highlights
Record funds from operations of
Record production of 5,203 boe/d in Q2 2014, a 24% increase from 4,182 boe/d and a 8% production per share increase over Q1 2014
Record operating field netbacks of
Oil and liquids weighting increase to 61% in Q2 2014 from 56% in Q1 2014
Record quarter of drilling activity, including 4 (3.7 net) Cardium wells in the greater
Pembina area, 11 (9.3 net)
Exited the quarter with production averaging over 6,000 boe/d during the last week of June, excluding seven wells drilled in Q2 2014 and expected to be on production in Q3 2014
First Half 2014 Highlights
Tamarack's record quarter is the result of a very successful first half drilling program which saw the Company drill 10 net Cardium oil wells, 14 net
Production rates benefited from Cardium and
As a result of strong first half results, Tamarack is pleased to announce that the Company's board of directors has approved an increase to the 2014 capital budget to
Second half of 2014 estimated production rate increased to 6,624 boe/d (approximately 59-61% liquids) from 6,250 boe/d.
2014 estimated average production rate increased to 5,500 to 5,700 boe/d (approximately 59-61% liquids) from 5,300 to 5,500 boe/d.
2014 estimated exit production rate of between 7,300 to 7,500 boe/d (approximately 58-61% liquids) from 6,500 to 6,700 boe/d.
2014 estimate for cash flow from operations of between
Estimated 2014 year end debt to annualized fourth quarter of 2014 cash flow from operations of less than 0.9 times.
Tamarack has filed its unaudited condensed consolidated interim financial statements as at
Selected financial and operational information is outlined below and should be read in conjunction with the Financial Statements, which were prepared in accordance with International Financial Reporting Standards ('IFRS'), and the related MD&A. These documents are accessible on Tamarack's website at www.tamarackvalley.ca or on SEDAR at www.sedar.com.
Tamarack has continued to accelerate its rate of growth, drilling more wells in the first half of 2014 than all of 2013. In the first half of 2014, Tamarack drilled 13 (10 net) Cardium oil wells, 16 (14 net)
During the first ten months of the three-year farm-in agreement, the Company has fulfilled approximately 39% of the drilling commitment, well ahead of expectations.
The Company was also active adding to its approximate eight years of drilling inventory by acquiring or farming-in on an additional 14.5 (9.1 net) sections of undeveloped acreage on lands in the greater Pembina area. In all, Tamarack has added 29.8 net Cardium drilling locations to its inventory which now sits at 182.5 net low risk horizontal Cardium locations. The Company's undeveloped acreage was 198,477 acres at the end of the second quarter of 2014.
During the third quarter, Tamarack plans to bring on production seven wells that were drilled in the second quarter, 1 net Cardium oil well in the
Bank Syndicate in Place
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 - targeting resource plays that 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
These endeavors add to Tamarack's strong resource portfolio, including Cardium properties at Lochend, Garrington and
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 and operations, estimated average and exit production rates in 2014 and expectations regarding the addition of reserves through drilling.
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 performance of new and existing wells, the application of existing drilling and fracturing techniques, the continued availability of capital and skilled personnel, the ability to maintain or grow the banking facilities and the accuracy of Tamarack's geological interpretation of its drilling and land opportunities.
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.
Also included in this press release are estimates of Tamarack's 2014 cash flow from operations and 2014 year end debt to annualized fourth quarter of 2014 cash flow from operations, which are based on the assumptions as to production levels, capital expenditures and commodity pricing disclosed in this press release.
To the extent that such estimates constitute a financial outlook within the meaning of applicable securities laws, they were approved by management of Tamarack on
Readers are cautioned that the information may not be appropriate for other purposes.
The actual results of Tamarack will likely vary from the amounts set forth in the financial outlook and such variation may be material. 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 Annual Information Form ('AIF') dated
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.
President & CEO
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