CALGARY, A.B. — Tourmaline Oil Corp. announced that it has sold off several minor assets, and that it will be accelerating development of a Peace Region facility.
The company said that it has completed the sale of a series of primarily undeveloped assets during the first quarter for a total of $72.0 million. The undeveloped assets were not scheduled for development within the next five years, and Tourmaline said it plans to put the $72 million towards paying off debts.
The company also said it will be accelerating a Peace River High facility project into 2H 2018 that will allow for incremental oil production in the Lower Montney and Charlie Lake. The $20.0 million facility will add approximately 3,000 barrels per day of oil production and 5 million cubic feet per day of associated gas before the end of this year. Tourmaline will also drill an additional six Lower Montney horizontal oil wells during the second half of 2018, at an estimated capital cost of $15.0 million.
The accelerated Peace River High facility project and associated drilling program are anticipated to further increase the Company’s liquids production profile for 2019 up to an average production of 63,000 bpd from 60,000 bpd currently forecasted with liquids production anticipated to reach 75,000 bpd by the fourth quarter next year.