​Tourmaline bumping 2017 spend by 44 percent, plans to stay within cash flow

Tourmaline Oil CEO Mike Rose. Image: Daniel Wood

Tourmaline Oil Corp. has 17 rigs running in Alberta and British Columbia right now and plans to keep up that level of activity throughout the year, the company said this week.

Tourmaline is increasing its capital program this year to $1.3 billion, up 44 percent from its $730.7 million capital investment in 2016. Cash flow for 2017 is expected to be $1.4 billion.

The company, which began operations in the fall of 2008, has largely grown through a series of strategic acquisitions, culminating in a deal that saw Tourmaline buy Shell Canada Energy’s Deep Basin and Gundy Montney assets in northeast B.C. in a $1.37 billion stock and cash deal that closed late last year.

Production in 2016 averaged 185,672 boe/d, continuing its upward progression from 154,403 boe/d in 2015, 112,929 boe/d in 2014 and 74,796 boe/d in 2013.

Tourmaline plans to increase production to between 240,000 to 260,000 boe/d this year.

The company is currently operating 17 drilling rigs, with 11 of the rigs in the Alberta Deep Basin, three rigs in the NEBC Montney gas-condensate complexes and three rigs on the Peace River High.

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