Tourmaline Oil says it is advancing three new "extensive" exploration and production opportunities within its existing core complexes at Brazeau River, Hinton-Anderson-Lambert and Peace River.
In the Brazeau River area, Tourmaline is delineating a new liquid-rich opportunity at the south end of its Deep Basin complex, where it has brought on production from eight Viking horizontals over the past two years.
The Brazeau River drill and complete costs average $4.3 million. The type curve based on these eight producing wells indicates an internally estimated ultimate recovery of 5.1 bcf of sales gas and 146,500 boe of condensate and NGL yielding an implied value of $10.5 million per well, the company says.
Tourmaline has a defined future inventory of approximately 60 additional horizontals in the area, all of which can access company-operated infrastructure.
At Hinton-Anderson-Lambert, Tourmaline's initial horizontal well into a liquid-rich Cardium complex has produced 1.6 bcf and 48,000 bbls of liquid (95 per cent C5+) over the first 100 days of production.
Drilling and completion costs were $3.5 million for the 1,500 metre lateral with a 30 stage completion.
Tourmaline plans four to five follow-up and delineation wells by year-end to further evaluate the potentially large gas/condensate complex with a large associated drilling inventory.
In the Peace River High Montney oil play, after five days of production the company’s most recent Lower Montney horizontal at Valhalla is producing at 1,540 boe per day including 1,107 bbls per day of oil and 2.6 mmcf per day of natural gas.
Multiple follow-up wells are planned over the next few months with the incremental oil volumes going to Tourmaline's oil and gas processing facilities at Spirit River.
The company said it has “a substantial inventory” of Lower Montney horizontals on existing lands, which will be further defined with the upcoming drilling program.
The Lower Montney opportunity complements the new extensive Lower Charlie Lake development announced earlier this month. The first Lower Charlie Lake step-out to two December 2015 discoveries has averaged 1,919 bbls/d of 35 API oil and 1.9 mmcf per day of sweet gas (2,236 boe/d) over the first 14 days of production.
The current work at Lower Charlie Lake has seen 15 new wells on production, with 284 future locations in inventory.
At the end of last year, an asset deal with Shell Canada Limited made Tourmaline one of the premier Montney-Deep Basin players, pushing average daily production to about 215,000 boe at year end.
The Shell assets in Alberta Deep Basin and British Columbia North Montney are in areas the company has long been active. The deal included producing properties, developed and undeveloped land, as well as infrastructure.
The cash-and-stock deal, worth about $1.37 billion, included $1 billion cash, most of which was raised through new equity.