Tamarack Valley Energy Ltd. Announces 2015 Second Quarter Financial and Operating Results. Operational Efficiencies Position Company for Continued Growth
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 08/13/15 -- Tamarack Valley Energy Ltd. ("Tamarack" or the "Company") (TSX VENTURE: TVE) is pleased to announce its operating and financial results for the second quarter of 2015. The Company exceeded its second quarter 2015 production guidance of 6,300 to 6,500 boe/d by averaging 6,992 boe/d and increased its funds flow netback per boe by 9.8% to $20.72/boe through continued cost cutting measures.
The Company has filed its unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2015 ("Financial Statements") and management's discussion and analysis ("MD&A") on SEDAR. 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 or on SEDAR at .
Financial and Operating Highlights
Operations Update
Tamarack's average daily production of 6,992 boe/d (60% oil & NGLs) during the second quarter of 2015 exceeded internal guidance of 6,300 to 6,500 boe/d, despite experiencing higher than expected downtime on various TransCanada ("TCPL") pipelines during the quarter, which resulted in approximately 440 boe/d of lost production to the quarter average. The Company was able to exceed production targets due to performance in the Wilson Creek area of Alberta and the Hatton area of Saskatchewan. Tamarack exited July 2015 producing approximately 8,525 boe/d (58% oil & NGLs) with 6 (4.4 net) wells still waiting to be brought on production. The Company is expected to experience similar TCPL curtailments and intermittent shut-ins during the third quarter of 2015 as it experienced during the second quarter, as TCPL works to repair recently failed compressors in the Clearwater area of Alberta. Despite this unscheduled production downtime, Tamarack is still expecting to achieve its 2015 annual production guidance of between 8,000-8,200 boe/d (approximately 55-60% oil & NGLs).
Late in the second quarter of 2015, the Company fracture stimulated 4 (2.4 net) horizontal Cardium wells that were drilled in late 2014 and early 2015. The Company also commenced its second half 2015 drilling program on May 25, 2015 with 4 (4.0 net) horizontal Cardium oil wells drilled and completed in the Wilson Creek area and a fifth well currently being drilled. These new Wilson Creek wells only contributed 16 boe/d average production during the second quarter of 2015 due to the timing of wells coming on-stream. The full production impact of these wells will be realized in the third quarter of 2015 as the Company expects to bring a total of 8 (6.4 net) wells on production.
The Tamarack team remains focused on continuing to reduce operating costs and service costs during the second half of 2015 as it did during the fourth quarter of 2014 and the first half of 2015.
Sustainable Cash Flow
Tamarack's superior drilling inventory generates sustainable cash flow at a wide range of commodity prices. During 2015, the Company has continued to increase operational efficiencies as a result of tuck-in acquisitions, reduced capital costs and increased capital efficiencies in an attempt to reduce the effects of significantly lower commodity prices than what was realized in 2014. This initiative has allowed the Company to continue to drill wells in the Wilson Creek area which are achieving 1.5 year payouts or less at current strip prices. Tamarack has taken the necessary measures to be sustainable in 2016 at current strip prices by maintaining production at or above 9,000 boe/d while limiting capital expenditures to funds from operations. The Company estimates it has approximately 4 years of drilling inventory at sub $55/bbl WTI oil pricing and approximately 6 years of inventory at oil pricing between $55 and $75 WTI.
Credit Facility Increase
Tamarack's credit facilities were increased to $165 million from $150 million during the second quarter of 2015 as a result of its annual review. The $165 million facility is made up of a revolving credit facility in the amount of $155 million and a $10 million operating facility.
Financial & Operating Results
Notes:
Annual Meeting
All shareholders are invited to attend Tamarack's annual meeting on Thursday, August 27, 2015 at 1:30 pm (MDT) in the Devonian Room of the Calgary Petroleum Club, 319 5th Avenue SW.
TSX Graduation
The issued and outstanding Common Shares are listed on the TSX Venture Exchange (the "TSX-V") under the trading symbol "TVE". Tamarack has applied to the Toronto Stock Exchange ("TSX") to graduate and list its Common Shares on such exchange. The Corporation has received conditional approval to list the Common Shares on the TSX. Listing will be subject to Tamarack fulfilling all of the original listing requirements of the TSX. There are no assurances that the graduation or listing will be accepted by the TSX and completed in a timely manner or at all.
Upcoming Webcast
Tamarack is pleased to offer a live webcast of its presentation at EnerCom's The Oil & Gas Conference in Dallas, Texas on August 18, 2015 at 10:30 a.m. (MDT). To view the live webcast, click here just prior to the presentation:
About Tamarack Valley Energy Ltd.
Tamarack is an oil and gas exploration and production company committed to long-term growth and the 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 has an extensive inventory of low-risk development oil locations in the Pembina, Wilson Creek, Garrington and Lochend Cardium fairway and the Redwater shallow Viking play in Alberta. With a balanced portfolio and an experienced and committed management team, Tamarack intends to continue to deliver on its promise to maximize shareholder return while managing its balance sheet.
Abbreviations
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' NI 51-101. 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", "target", "plan", "continue", "intend", "estimate", "expect", "may", "will", "project", "should", or similar words suggesting future outcomes. More particularly, this press release contains statements concerning expected TCPL curtailments and intermittent shut-ins during the third quarter of 2015, estimated 2015 annual production, reductions in operating costs and service costs during the second half of 2015 and estimated drilling inventory. 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 and costs of drilling rigs, other oilfield services and third party facilities, 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.
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) for additional risk factors relating to Tamarack. The AIF is available for viewing under the Company's profile on .
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Tamarack Valley Energy Ltd.
Brian Schmidt
President & CEO
403.263.4440
Tamarack Valley Energy Ltd.
Ron Hozjan
VP Finance & CFO
403.263.4440
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Datum: 13.08.2015 - 10:30 Uhr
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News-ID 413408
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