Additional liquid production opportunities are being evaluated for both 2015 and 2016, as the Company continues to evolve this overall strategy to address all aspects of oil and liquid capture, storage, transportation, fractionation and marketing.
EP Program Update
2013 EP Capital spending will be increased from $847.5 million to $950.0 million to reflect the Deep Basin acquisitions and the increased 2H 2013 drilling/completion program. Forecast exit 2013 net debt(1) is now $534.9 million or approximately 0.92 times anticipated 2013 cash flow(1). The recent reduction in 2013 full year cash flow estimates is primarily due to the widening in the NYMEX-AECO natural gas price differential experienced in the third quarter of 2013. The Company expects this issue will be significantly diminished during the fourth quarter of 2013. Current forecast 2014 exit debt of $371.5 million to estimated 2014 cash flow of $1,013.5 million is approximately 0.4 times. 2014 cash flow estimates have been increased by $51.2 million as a result of an increase in 2014 full year average production estimates by 6,000 boepd from 112,000 boepd to 118,000 boepd.
(1) See "Non-GAAP Financial Measures"
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", "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 anticipated petroleum and natural gas production for various periods, cash flows, net debt levels, debt to cash flow ratios, capital efficiency and capital spending, projected operating and drilling costs, the timing for facility construction, expansions and facility start-up dates, as well as Tourmaline's anticipated new and existing drilling locations and future drilling prospects and plans, completion of acquisitions, the timing thereof and the benefits to be derived therefrom, business strategy, future development and growth opportunities, 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 commodity prices and 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, labor and services; and ability to market 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.
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