CALGARY, AB, May 5, 2021 /CNW/ - Tourmaline Oil Corp.
(TSX: TOU) ("Tourmaline" or the "Company") is pleased to release
financial and operating results for the first quarter of 2021.
HIGHLIGHTS
- First quarter cash flow(1) was a record $629.3 million ($2.11/fully diluted share).
- Tourmaline generated record free cash flow(2) of
$233.5 million in the first quarter
of 2021, which was utilized to fund the dividend increase announced
in the March 10, 2021 year-end press
release and to reduce net debt(3) by $153.1 million in the quarter.
- First quarter 2021 average production of 411,579 boepd, ahead
of the upper range of the full-year guidance of 390,000 – 410,000
boepd.
- First quarter liquids production (crude oil, condensate and
NGLs) averaged a record 91,971 bpd, also ahead of guidance.
PRODUCTION UPDATE
- First quarter 2021 production averaged 411,579 boepd, ahead of
the upper range of full-year guidance of 390,000 – 410,000
boepd.
- Driven by stronger than anticipated well performance, March
production averaged 417,841 boepd. There were no storage
withdrawal volumes in the March production totals.
- First quarter average liquid production was 91,971 bpd (crude
oil, condensate and NGLs), ahead of original full-year 2021
guidance of 87,000 bpd.
- Given stronger production performance in all three operated
complexes, second quarter 2021 production of 400,000 – 405,000
boepd is anticipated, an increase from previous expectations of
approximately 395,000 boepd. Second quarter 2021 production
will continue to be impacted by planned pipeline maintenance and
Company plant turnarounds which has been incorporated into current
guidance estimates.
- Second quarter production estimates also include the impact of
the Company's storage injection programs in California and Dawn, which is expected to
reduce quarterly production volumes by 4,500 boepd.
FINANCIAL RESULTS
- First quarter 2021 cash flow was a record $629.3 million ($2.11/fully diluted share), a 122% increase over
first quarter 2020 cash flow of $283.7
million ($1.05/fully diluted
share) and a 59% increase over the previous quarter's cash flow of
$396.9 million.
- First quarter 2021 after tax net earnings were $247.8 million ($0.83/fully diluted share), compared to a net
loss of $35.8 million in the first
quarter of 2020 ($(0.13)/share).
- The Company generated record free cash flow of $233.5 million during the first quarter which was
utilized to fund the dividend increase announced on March 10, 2021 and to reduce net debt by
$153.1 million in the quarter.
Tourmaline expects comparable free cash flow generation in Q2
2021.
- The full year 2021 forecast cash flow remains at $2.2 billion(4), yielding
approximately $1.1 billion of free
cash flow for the full year.
- Operating costs in Q1 2021 were $3.64/boe. Tourmaline is focused on further
dropping operating costs by continuing to integrate the acquired
Jupiter/Modern assets into the Company as well as reducing gas
volumes going to third party processing in the greater Gundy complex when the Phase 2 plant expansion
is complete.
CAPITAL PROGRAM AND FINANCIAL OUTLOOK
- First quarter 2021 E&P capital spending was $385.7 million; the full-year 2021 EP capital
budget remains at $1.075
billion.
- Tourmaline expended $30 million
on Gundy facility pre-builds in
the first quarter, putting the Company in a position to potentially
start up the Phase 2 deep cut expansion in early January 2022, ahead of the original mid-Q2 2022
completion target. This would allow the Company to take
advantage of potentially stronger Winter 2022 natural gas pricing;
note that 75% of Gundy Phase 2 expansion volumes will ultimately
flow to Malin and PG&E hubs via incremental long-term transport
on the GTN system that Tourmaline has secured. The Company
will finalize timing for this 45,000 boepd project as well as
provide revised 2021, 2022 and five-year plan guidance, reflecting
the impact of increased production volumes and improved strip
pricing, during Q2.
- Tourmaline did not complete any significant acquisitions during
the first quarter.
- Net debt at March 31, 2021, was
$1.63 billion, down 8.6% from exit
2020 net debt. The Company plans to continue to reduce debt
during 2021 and is targeting a net debt to cash flow ratio at year
end 2021 of approximately 0.5 times.
- During the first quarter, the Company issued $250 million of senior unsecured notes at a fixed
rate of 2.077% for seven years.
- The most recent five-year EP plan (March
10, 2021) delivers free cash flow of $1.1 billion in 2021 and $4.1 billion over the duration of the plan.
This free cash flow will be utilized for further modest dividend
increases, continued debt reduction, accretive acquisitions, select
emission reduction and environmental performance improvement
investments, and potential tactical share buy backs.
MARKETING UPDATE
- Average realized natural gas price in Q1 2021 was $3.86/mcf CAD as the Company benefitted from both
hedging and the Company's broad market diversification portfolio
throughout North America.
- Tourmaline has an average of 634 mmcfpd hedged for 2021 at a
weighted average fixed price of CAD $2.59 /mcf, an average of 158 mmcfpd hedged at a
basis to NYMEX of $(0.17) USD/mcf and
an average of 513 mmcfpd incremental volume exposed to export
markets, including Dawn, Iroquois,
Empress, Chicago, Ventura, Sumas, Malin, and PG&E.
- Natural gas fundamentals for 2021 and 2022 continue to
improve. Approximately 55% of Tourmaline's natural gas
volumes are exposed to spot prices in markets on the Western half
of the continent (PG&E, Malin, Sumas, Stn 2, AECO) where
fundamentals continue to be most supportive. Completion of
the ongoing NGTL buildout and Canadian West Coast LNG are expected
to further strengthen pricing at these hubs.
- 95% of total PG&E deliveries continue to remain unhedged
for 2021 at a market where fundamentals remain strong.
- NGL realizations in Q1 2021 were up 141% over Q1 2020 and are
expected to further strengthen through the balance of 2021.
Tourmaline is Canada's largest NGL
producer averaging 57,102 bpd during the first quarter.
EP UPDATE
- Tourmaline drilled 67.75 net wells during the first quarter and
expects to drill and complete approximately 220 net wells during
full year 2021.
- Tourmaline operated 12 drilling rigs during the first quarter
of 2021 and is currently operating four rigs during spring break
up.
- Well performance in all three complexes has on average exceeded
expectations, driving the stronger production performance realized
in March and April.
- Tourmaline drilled one Montney
pad this winter in the Laprise-Conroy area in NEBC on the lands
acquired in the 2020 Polar Star transaction. The Laprise
b-34-L five well pad tested at a combined final total
productive capacity of 46 mmcfpd of natural gas and 3,970 bpd of
condensate after three day per well flow tests, significantly ahead
of expectations. Average completed well costs for this
initial remote pad were $3.9
million/well. The Company expects future
drill/complete capital costs of $3.5
million/well or less with further drilling time optimization
and stimulated well cost reduction via centralized frac water
management facilities.
- Deep Basin production reached a record in early April at
261,400 boepd (1,252 bcf/day of natural gas and 52,664 bpd of
liquids) driven by stronger than forecast performance on the
acquired Jupiter/Modern assets. The 11-7-60-1W6 three-well
pad on the Jupiter lands acquired has a combined 30-day IP of 6,090
boepd (22.7 mmcfpd, 2,263 bbl/d liquids). The 6-3-60-1W6
two-well pad has a combined 30-day IP of 5,137 boepd (24.1 mmcfpd,
1,131 bbl/d liquids). Drilling costs on the Jupiter lands
acquired have averaged 43% less since December 2020; completion costs have averaged 50%
less and equipping costs have averaged 70% less.
ENVIRONMENTAL PERFORMANCE IMPROVEMENT
- The Company has expanded the significant ongoing diesel
displacement initiative into the well stimulation EP business
segment. Tourmaline has entered into a joint venture with
Trican Well Service Ltd. to construct and utilize Canada's first low-emission fracturing
fleet. The spread will utilize CAT Tier 4 dynamic gas
blending engines that will provide a leading-edge reduction in
emissions while reducing fuel costs. Tourmaline has agreed to
employ the new spread for a three-year period, which is expected to
be available in 2H 2021.
- Tourmaline continues to expand the Company's Water Management
initiatives which reduce emissions, save capital costs and
significantly reduce fresh water usage. The long-term goal is
to ultimately eliminate all fresh water from completion and
stimulation operations. The Company now has 37 water
facilities across the three core complexes including eight produced
water storage hubs. Recent water management operations
highlights include:
-
- The first successful electric, longline water transfer trial in
Alberta during Q1 2021;
- Electrification of all onsite water transfer equipment (Q4 2020
– Q1 2021); and
- Elimination of diesel-fired water heaters on 90% of the pad
operations during the past two quarters.
_________________________________
|
(1)
|
"Cash flow" is
defined as cash provided by operations before changes in non-cash
operating working capital. See "Non-GAAP Financial Measures"
in this news release and in the Company's Q1 2021 Management's
Discussion and Analysis.
|
(2)
|
"Free cash flow"
is defined as cash flow less total net capital expenditures.
Total net capital expenditures is defined as total capital spending
before acquisitions and non-core dispositions. Free cash flow
is prior to dividend payments. See "Non-GAAP Financial
Measures" in this news release and the Company's Q1 2021
Management's Discussion and Analysis.
|
(3)
|
"Net debt" is
defined as bank debt plus working capital (adjusted for the fair
value of short-term financial instruments, short-term lease
liabilities, short-term decommissioning obligations and unrealized
foreign exchange in working capital (deficit)). See "Non-GAAP
Financial Measures" in this news release and in the Company's Q1
2021 Management's Discussion and Analysis.
|
(4)
|
Based on five-year
plan released on March 10, 2021 and based on oil and gas commodity
strip pricing at March 1, 2021.
|
CORPORATE SUMMARY – FIRST QUARTER 2021
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
2021
|
2020
|
Change
|
OPERATIONS
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
Natural gas
(mcf/d)
|
|
|
|
|
1,917,648
|
1,474,681
|
30%
|
Crude oil, condensate
and NGL (bbl/d)
|
|
|
|
|
91,971
|
62,569
|
47%
|
Oil equivalent
(boe/d)
|
|
|
|
|
411,579
|
308,349
|
33%
|
Product
prices(1)
|
|
|
|
|
|
|
|
Natural gas
($/mcf)
|
|
|
|
|
$
|
3.86
|
$
|
2.45
|
58%
|
Crude oil, condensate
and NGL ($/bbl)
|
|
|
|
|
$
|
41.06
|
$
|
34.54
|
19%
|
Operating expenses
($/boe)
|
|
|
|
|
$
|
3.64
|
$
|
2.97
|
23%
|
Transportation costs
($/boe)
|
|
|
|
|
$
|
4.35
|
$
|
4.35
|
-%
|
Operating
netback(3) ($/boe)
|
|
|
|
|
$
|
17.70
|
$
|
10.79
|
64%
|
Cash general and
administrative
expenses ($/boe)(2)
|
|
|
|
|
$
|
0.63
|
$
|
0.58
|
9%
|
FINANCIAL
($000, except share and per share)
|
|
|
|
|
|
|
|
Total revenue from
commodity sales and realized gains
|
|
|
|
|
1,005,264
|
524,915
|
92%
|
Royalties
|
|
|
|
|
53,776
|
16,929
|
218%
|
Cash
flow(3)
|
|
|
|
|
629,325
|
283,718
|
122%
|
Cash flow per share
(diluted)(3)
|
|
|
|
|
$
|
2.11
|
$
|
1.05
|
101%
|
Net earnings
(loss)
|
|
|
|
|
247,837
|
(35,812)
|
792%
|
Net earnings (loss)
per share (diluted)
|
|
|
|
|
$
|
0.83
|
$
|
(0.13)
|
738%
|
Capital expenditures
(net of dispositions)
|
|
|
|
|
422,106
|
317,614
|
33%
|
Weighted average
shares outstanding (diluted)
|
|
|
|
|
298,394,813
|
270,940,484
|
10%
|
Net
debt(3)
|
|
|
|
|
(1,631,862)
|
(1,838,128)
|
(11)%
|
(1)
|
Product prices
include realized gains and losses on risk management and financial
instrument contracts.
|
(2)
|
Excluding interest
and financing charges.
|
(3)
|
See "Non-GAAP
Financial Measures" in this news release and in the Company's Q1
2021 Management's Discussion and Analysis.
|
Conference Call Tomorrow at 9:00 A.M. MT
(11:00 A.M. ET)
Tourmaline will host a conference call tomorrow, May 6, 2021 starting at 9:00 a.m. MT (11:00 a.m.
ET). To participate, please dial 1-888-231-8191
(toll-free in North America), or
international dial-in 647-427-7450, a few minutes prior to the
conference call.
Conference ID is 5616176.
Reader Advisories
CURRENCY
All amounts in this news release are stated in Canadian dollars
unless otherwise specified.
FORWARD-LOOKING INFORMATION
This news release contains forward-looking information and
statements (collectively, "forward-looking information") within the
meaning of applicable securities laws. The use of any of the words
"forecast", "expect", "anticipate", "continue", "estimate",
"objective", "ongoing", "on track", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify forward-looking information. More particularly
and without limitation, this news 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 the following: anticipated
petroleum and natural gas production and production growth for
various periods including estimated production levels for 2021 and
beyond; expected free cash flow and cash flow levels for 2021 and
beyond; potential for share buybacks; targeted 2021 exit net debt
to cash flow ratio; the timing for the release of revised guidance
for 2021 and 2022 and the five year plan; the future declaration
and payment of dividends and the timing and amount thereof
including any future increase; cash flow and free cash flow levels;
production levels supported by certain of the Company's reserves
and drilling inventory; capital spending over various periods; cost
reduction initiatives; improvements in capital efficiency;
projected operating and drilling costs; the timing for facility
expansions and facility start-up dates; sustainability and
environmental improvement initiatives; anticipated future commodity
prices including the expectation for future increases above current
levels; the ability to generate, and the amount of, anticipated
cash flow and free cash flow including in 2021 and over the five
year development plan; as well as Tourmaline's future drilling
prospects and plans, 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 the following: prevailing and future commodity prices
and currency exchange rates; prevailing and future commodity prices
and currency 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 and the benefits to be derived therefrom; the state of
the economy and the exploration and production business; the
availability and cost of financing, labour and services; and
ability to market crude oil, natural gas and NGL successfully.
Without limitation of the foregoing, future dividend payments, if
any, and the level thereof is uncertain, as the Company's dividend
policy and the funds available for the payment of dividends from
time to time is dependent upon, among other things, free cash flow,
financial requirements for the Company's operations and the
execution of its growth strategy, fluctuations in working capital
and the timing and amount of capital expenditures, debt service
requirements and other factors beyond the Company's control.
Further, the ability of Tourmaline to pay dividends will be subject
to applicable laws (including the satisfaction of the solvency test
contained in applicable corporate legislation) and contractual
restrictions contained in the instruments governing its
indebtedness, including its credit facility.
Statements relating to "reserves" are also deemed to be forward
looking information, 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.
Although Tourmaline believes that the expectations and
assumptions on which such forward-looking information is based are
reasonable, undue reliance should not be placed on the
forward-looking information because Tourmaline can give no
assurances that it will prove to be correct. Since forward-looking
information addresses future events and conditions, by its very
nature it involves inherent risks and uncertainties. Actual results
could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to:
the risks associated with the oil and natural gas industry in
general such as operational risks in development, exploration and
production; delays or changes in plans with respect to exploration
or development projects or capital expenditures; the uncertainty of
estimates and projections relating to reserves, production,
revenues, costs and expenses; health, safety and environmental
risks; commodity price and exchange rate fluctuations; interest
rate fluctuations; marketing and transportation; loss of markets;
environmental risks; competition; incorrect assessment of the value
of acquisitions; failure to complete or realize the anticipated
benefits of acquisitions or dispositions; ability to access
sufficient capital from internal and external sources; failure to
obtain required regulatory and other approvals; and changes in
legislation, including but not limited to tax laws, royalties and
environmental regulations.
In addition, pandemics, epidemics or outbreaks of an infectious
disease in Canada or worldwide,
including COVID-19 or other illnesses could have an adverse impact
on the Company's results, business, financial condition or
liquidity. If the pandemic is further prolonged, including through
subsequent waves, or if additional variants of COVID-19 emerge
which are more transmissible or cause more severe disease, or if
other diseases emerge with similar effects, the adverse impact on
the economy could worsen. It remains uncertain how the
macroeconomic environment, and societal and business norms will be
impacted following this COVID-19 pandemic. Unexpected developments
in financial markets, regulatory environments, or consumer
behaviour may also have adverse impacts on the Company's results,
business, financial condition or liquidity, for a substantial
period of time. The Company's business, financial condition,
results of operations, cash flows, reputation, access to capital,
cost of borrowing, access to liquidity, and/or business plans may,
in particular, and without limitation, be adversely impacted as a
result of the pandemic and/or decline in commodity prices as a
result of: the shut-down of facilities or the delay or
suspension of work on major capital projects due to workforce
disruption or labour shortages caused by workers becoming infected
with COVID-19, or government or health authority mandated
restrictions on travel by workers or closure of facilities or
worksites; suppliers and third-party vendors experiencing
similar workforce disruption or being ordered to cease
operations; reduced cash flows resulting in less funds from
operations being available to fund capital expenditure
budgets; reduced commodity prices resulting in a reduction in
the volumes and value of reserves; crude oil storage
constraints resulting in the curtailment or shutting in of
production; counterparties being unable to fulfill their
contractual obligations on a timely basis or at all; the
inability to deliver products to customers or otherwise get
products to market caused by border restrictions, road or port
closures or pipeline shut-ins, including as a result of pipeline
companies suffering workforce disruptions or otherwise being unable
to continue to operate; and the ability to obtain additional
capital including, but not limited to, debt and equity financing
being adversely impacted as a result of unpredictable financial
markets, commodity prices and/or a change in market fundamentals.
The COVID-19 pandemic has also created additional operational risks
for the Company, including the need to provide enhanced safety
measures for its employees and customers; comply with rapidly
changing regulatory guidance; address the risk of, attempted
fraudulent activity and cybersecurity threat behaviour; and protect
the integrity and functionality of the Company's systems, networks,
and data as a larger number of employees work remotely. The Company
is also exposed to human capital risks due to issues related to
health and safety matters, and other environmental stressors as a
result of measures implemented in response to the COVID-19
pandemic, as well as the potential for a significant proportion of
the Company's employees, including key executives, to be unable to
work effectively, because of illness, quarantines,
sheltering-in-place arrangements, government actions or other
restrictions in connection with the pandemic. The extent to which
the COVID-19 pandemic continues to impact the Company's results,
business, financial condition or liquidity will depend on future
developments in Canada, the U.S.
and globally, including the development and widespread availability
of efficient and accurate testing options, and effective treatment
options or vaccines. Despite the approval of certain vaccines by
the regulatory bodies in Canada
and the U.S., the ongoing evolution of the development and
distribution of an effective vaccine also continues to raise
uncertainty.
Readers are cautioned that the foregoing list of factors is not
exhaustive.
Additional information on these and other factors that could
affect Tourmaline, or its operations or financial results, are
included in the Company's most recently filed Management's
Discussion and Analysis (See "Forward-Looking Statements" therein),
Annual Information Form (See "Risk Factors" and "Forward-Looking
Statements" therein) and other reports on file with applicable
securities regulatory authorities and may be accessed through the
SEDAR website (www.sedar.com) or Tourmaline's website
(www.tourmalineoil.com).
The forward-looking information contained in this news release
is made as of the date hereof and Tourmaline undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, unless expressly required by applicable securities
laws.
BOE EQUIVALENCY
In this news release, production and reserves information may be
presented on a "barrel of oil equivalent" or "BOE" basis. BOEs may
be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. In
addition, as the value ratio between natural gas and crude oil
based on the current prices of natural gas and crude oil is
significantly different from the energy equivalency of 6:1,
utilizing a conversion on a 6:1 basis may be misleading as an
indication of value.
FINANCIAL OUTLOOKS
Also included in this news release are estimates of Tourmaline's
2021 exit net debt-to-cash flow ratio as well as 2021 – 2025 cash
flow and free cash flow, which are based on, among other things,
the various assumptions as to production levels, capital
expenditures, annual cash flows and other assumptions disclosed in
this news release and including Tourmaline's estimated average
production of 390,000 – 410,000 boepd for 2021 and 426,000,
448,000, 465,000 and 482,000 boepd for 2022 - 2025,
respectively. Commodity price assumptions for natural gas
(NYMEX (US) - $2.85/mcf, $2.65/mcf, $2.51/mcf, $2.52/mcf and $2.54/mcf for 2021 – 2025, respectively; AECO -
$2.96/mcf, $2.51/mcf, $2.29/mcf, $2.30/mcf and $2.40/mcf for 2021 – 2025, respectively), and
crude oil (WTI (US) - $58.52/bbl,
$54.44/bbl, $51.80/bbl, $50.35/bbl and $49.68/bbl for 2021 – 2025, respectively) and an
exchange rate assumption of $0.79
(US/CAD) for 2021 – 2023 and $0.78
for 2024 – 2025. Further, in the case of years subsequent to 2021,
readers are cautioned that such estimates are provided for
illustration only and are based on budgets and forecasts that have
not been finalized and are subject to a variety of additional
factors and contingencies including prior years' results. To the
extent such estimates constitute financial outlooks, they were
approved by management and the Board of Directors of Tourmaline on
May 5, 2021 and are included to
provide readers with an understanding of Tourmaline's anticipated
cash flow and free cash flow based on the capital expenditure,
production and other assumptions described herein and readers are
cautioned that the information may not be appropriate for other
purposes.
NON-GAAP FINANCIAL MEASURES
This news release includes references to "free cash flow", "cash
flow", and "net debt" which are financial measures commonly used in
the oil and gas industry and do not have a standardized meaning
prescribed by International Financial Reporting Standards ("GAAP").
Accordingly, the Company's use of these terms may not be comparable
to similarly defined measures presented by other companies.
Management uses the term "free cash flow", "cash flow", and "net
debt" for its own performance measures and to provide shareholders
and potential investors with a measurement of the Company's
efficiency and its ability to generate the cash necessary to fund a
portion of its future growth expenditures, to pay dividends or to
repay debt. Investors are cautioned that these non-GAAP measures
should not be construed as an alternative to net income or cash
from operating activities determined in accordance with GAAP as an
indication of the Company's performance. Free cash flow is
calculated as cash flow less total net capital expenditures and is
prior to dividend payments. Net capital expenditures is defined as
the sum of E&P capital program and other corporate
expenditures, net of non-core dispositions. See "Non-GAAP
Financial Measures" in the December 31,
2020 Management's Discussion and Analysis for the definition
and description of these terms.
OIL AND GAS METRICS
This news release contains certain oil and gas metrics which do
not have standardized meanings or standard methods of calculation
and therefore such measures may not be comparable to similar
measures used by other companies and should not be used to make
comparisons. Such metrics have been included in this document to
provide readers with additional measures to evaluate the Company's
performance; however, such measures are not reliable indicators of
the Company's future performance and future performance may not
compare to the Company's performance in previous periods and
therefore such metrics should not be unduly relied upon.
SUPPLEMENTAL INFORMATION REGARDING PRODUCT TYPES
This news release includes references to Q1 2021 average daily
production, March 2021 average daily
production, Q2 2021 average daily production, 2021 average daily
production and Deep Basin April 2021
average daily production. The following table is intended to
provide supplemental information about the product type composition
for each of the production figures that are provided in this news
release:
|
Light and
Medium
Crude Oil(1)
|
|
Conventional
Natural Gas
|
|
Shale Natural
Gas
|
|
Natural Gas
Liquids(1)
|
|
Oil Equivalent
Total
|
|
Company Gross
(Bbls)
|
|
Company Gross
(Mcf)
|
|
Company Gross
(Mcf)
|
|
Company Gross
(Bbls)
|
|
Company Gross
(Boe)
|
Q1 2021 Average Daily
Production
|
34,869
|
|
1,297,070
|
|
620,578
|
|
57,102
|
|
411,579
|
March 2021 Average
Daily Production
|
36,169
|
|
1,289,835
|
|
655,734
|
|
57,410
|
|
417,841
|
Q2 2021 Average Daily
Production
|
34,841
|
|
1,242,479
|
|
631,659
|
|
55,302
|
|
402,500
|
2021 Average Daily
Production
|
33,060
|
|
1,198,601
|
|
667,955
|
|
55,848
|
|
400,000
|
Deep Basin April 2021
Average Daily Production
|
11,833
|
|
1,252,416
|
|
-
|
|
40,831
|
|
261,400
|
|
|
(1)
|
For the purposes
of this disclosure, condensate has been combined with Light and
Medium Crude Oil as the associated revenues and certain costs of
condensate are similar to Light and Medium Crude Oil.
Accordingly, NGLs in this disclosure exclude
condensate.
|
INITIAL PRODUCTION RATES
Any references in this news release to initial production rates
are useful in confirming the presence of hydrocarbons; however,
such rates are not determinative of the rates at which such wells
will continue production and decline thereafter and are not
necessarily indicative of long-term performance or ultimate
recovery. While encouraging, readers are cautioned not to place
reliance on such rates in calculating the aggregate production for
the Company. Such rates are based on field estimates and may be
based on limited data available at this time.
GENERAL
See also "Forward-Looking Statements", and "Non-GAAP Financial
Measures" in the most recently filed Management's Discussion and
Analysis.
CERTAIN DEFINITIONS:
bbl
|
barrel
|
bbls/day
|
barrels per
day
|
bbl/mmcf
|
barrels per million
cubic feet
|
bcf
|
billion cubic
feet
|
bcfe
|
billion cubic feet
equivalent
|
bpd or
bbl/d
|
barrels per
day
|
boe
|
barrel of oil
equivalent
|
boepd or
boe/d
|
barrel of oil
equivalent per day
|
bopd or
bbl/d
|
barrel of oil,
condensate or liquids per day
|
DUC
|
drilled but
uncompleted wells
|
gj
|
gigajoule
|
gjs/d
|
gigajoules per
day
|
mbbls
|
thousand
barrels
|
mmbbls
|
million
barrels
|
mboe
|
thousand barrels of
oil equivalent
|
mboepd
|
thousand barrels of
oil equivalent per day
|
mcf
|
thousand cubic
feet
|
mcfpd or
mcf/d
|
thousand cubic feet
per day
|
mcfe
|
thousand cubic feet
equivalent
|
mmboe
|
million barrels of
oil equivalent
|
mmbtu
|
million British
thermal units
|
mmbtu/d
|
million British
thermal units per day
|
mmcf
|
million cubic
feet
|
mmcfpd or
mmcf/d
|
million cubic feet
per day
|
MPa
|
megapascal
|
mstb
|
thousand stock tank
barrels
|
natural
gas
|
conventional natural
gas and shale gas
|
NCIB
|
normal course issuer
bid
|
NGL or
NGLs
|
natural gas
liquids
|
tcf
|
trillion cubic
feet
|
MANAGEMENT'S DISCUSSION AND ANALYSIS AND CONSOLIDATED
FINANCIAL STATEMENTS
To view Tourmaline's Management's Discussion and Analysis and
Interim Condensed Consolidated Financial Statements for the periods
ended March 31, 2021 and 2020, please
refer to SEDAR (www.sedar.com) or Tourmaline's website at
www.tourmalineoil.com.
ABOUT TOURMALINE OIL CORP.
Tourmaline is an investment grade Canadian senior crude oil and
natural gas exploration and production company focused on providing
strong and predictable long-term growth and a steady return to
shareholders through an aggressive exploration, development,
production and acquisition program in the Western Canadian
Sedimentary Basin by building its extensive asset base in its three
core exploration and production areas and exploiting and developing
these areas to increase reserves, production and cash flows at an
attractive return on invested capital.
SOURCE Tourmaline Oil Corp.