Production | Forecast - Production | Capital Markets | Capital Expenditure | Capex Decrease | Capital Expenditure - 2019
Tourmaline Cuts 2019 Budget While Maintaining Production Outlook
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Tourmaline Oil Corp. has updated its 2019 guidance and ongoing EP activities.
Cuts Budget -4% for 2019
The 2019 EP capital program has been reduced to $1.225 billion from the $1.3 billion announced on November 7, 2018.
- The $75.0 million program reduction includes fewer delineation wells in two complexes and lower completed well costs across all three core complexes. These capital reductions will have no impact on 2019 production guidance. The Company has identified a further $30-50 million in potential program reductions that won’t affect 2019 production but may affect 2020 growth plans. The Company will monitor commodity prices during the first half of the year prior to implementing any further budget changes.
The Company had reduced 2019 capital by 4% and increased 2019 production guidance by 3% at that time.
Production Plans Unchanged for 2019
- 2019 average production guidance of 300,000 boepd, representing 12% year-over-year growth, remains unchanged. A 1H 2019 average production range of 290,000-300,000 boepd and a 2H 2019 average production range of 310,000-320,000 boepd are forecast.
- Current production is within the 1H 2019 guidance range of 290,000-300,000 boepd. Tourmaline expects production levels above 300,000 boepd in late January when the Company’s volumes that flow to the Enbridge McMahon plant (approximately 4,500 boepd) come back on-stream when plant repairs are completed.
- Total liquid production has reached a record high of between 56,000 and 57,000 bpd (oil, condensate, NGLs).
- 2019 forecast average production of 300,000 boepd includes a 9% unscheduled downtime provision, up from the 5% used historically, providing considerable flexibility and upside.
- Construction of the 50,000 boepd Gundy deep cut facility remains on schedule for a June 2019 start-up. The plant will add between 35,000 and 50,000 boepd of net new production depending upon the levels of existing volumes that the Company elects to continue flowing to third-party facilities.
- The Company will have approximately 125 new wells available to be brought on production between January 15 and June 30, 2019.
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