Tamarack Valley Energy Ltd. reported on Jan. 18 that in the fourth quarter of 2016, it produced 11,453 barrels of oil equivalent per day (boe/d), 53% liquids, exceeding previous guidance of 11 Mboe/d for the quarter.
The company also said that the assets acquired in the Spur Resources Ltd. transaction that closed on Jan. 11, outperformed initial expectations, producing more than 6,600 boe/d, 57% liquids.
At closing Jan. 11, the pro forma debt was about $138 million.
Tamarack's fourth quarter volumes were 6% higher than the previous quarter and 16% higher than the 2015 fourth quarter rate.
Regarding the 2017 capital program, Tamarack will budget between 140 and 150 net wells, 122 to 130 of which will be Viking oil wells on the newly acquired Spur Assets.
About 80% of the budgeted Viking oil wells will likely to be drilled within the Consort, Veteran and Hoosier areas, the company said. During the first quarter of 2017, the company anticipates drilling 30-35 net Viking oil wells, including at least 20 extended reach horizontal wells.
Leading up to the closing of the acquisition, Tamarack secured licenses for the first quarter Viking drilling program on the Spur Assets.
According to the reaffirmed 2017 guidance, between 19 Mboe/d and 20 Mboe/d, about 60% liquids, will be produced. Capex should range between $165 million and $175 million.
Tamarack also said John Leach joined theboard of directors. He is a chartered professional accountant with more than 23 years of oil and gas experience.
He has been the senior vice president and CFO of Crew Energy Inc. since 2003. He was a founding member of Baytex Energy Ltd.. He will be a member of the Tamarack board’s audit committee.
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