Business
Tamarack Valley Energy Ltd. Announces 2020 First Quarter Results and Ongoing Value Preservation and Cost Cutting Focus
Calgary, Alberta--(Newsfile Corp. - May 12, 2020) - Tamarack Valley Energy Ltd. (TSX: TVE) ("T...
About this update from Tamarack Valley Energy Ltd.
[{"type":"text","content":"Tamarack Valley Energy Ltd. Announces 2020 First Quarter Results and Ongoing Value Preservation and Cost Cutting FocusCalgary, Alberta--(Newsfile Corp. - May 12, 2020) - Tamarack Valley Energy Ltd. (TSX: TVE) (\"Tamarack\" or the \"Company\") is pleased to announce its financial and operating results for the three months ended March 31, 2020. Selected financial and operational information is outlined below and should be read in conjunction with Tamarack's unaudited condensed consolidated interim financial statements for the three months ended March 31, 2020 and related management's discussion and analysis (\"MD&A\") which are available on SEDAR at www.sedar.com and on Tamarack's website at www.tamarackvalley.ca.In response to the unprecedented volatility in crude oil prices caused by demand destruction related to the impacts of COVID-19 coupled with a price war between OPEC and non-OPEC members, Tamarack is taking bold and proactive steps designed to preserve and protect shareholder value. The Company has pragmatically elected to shut-in corporate volumes of approximately 1,350 boe/d based on a multi-pronged cash flow analysis, and incorporates an NPV-based value preservation sensitivity that is specific to the Company's new, higher decline wells and our waterflood. In concert with the shut-ins, Tamarack is also updating previously provided guidance for 2020 as outlined within our March 18, 2020 press release. The measures taken by Tamarack to date in 2020 to limit capital spending, streamline costs and further enhance our balance sheet set the stage for ongoing success in 2021 when the operating environment and commodity price forecasts are expected to improve. Q1 2020 Financial and Operating HighlightsTamarack achieved average production of 23,531 boe/d in Q1/20, a 2% increase over 23,149 boe/d in Q1/19, and 5% lower than the previous quarter, while investing $73.9 million in capital expenditures. This contributed to the drilling of 59 (57.1 net) wells, comprised of 49 (47.8 net) Viking oil wells, four (3.3 net) Cardium oil wells, two (2.0 net) Penny Banff oil wells and four (4.0 net) water source and injector wells. We directed approximately 33% of our total Q1 capital expenditures to the Veteran waterflood, adding new injection patterns, extending pipeline infrastructure and increasing available source water capacity. Th...