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Tamarack Valley Energy Ltd. Announces 2020 Guidance and Continued Positive Response from Viking Waterflood
Calgary, Alberta--(Newsfile Corp. - January 9, 2020) - Tamarack Valley Energy Ltd. (TSX: TVE) ...
About this update from Tamarack Valley Energy Ltd.
[{"type":"text","content":"Tamarack Valley Energy Ltd. Announces 2020 Guidance and Continued Positive Response from Viking WaterfloodCalgary, Alberta--(Newsfile Corp. - January 9, 2020) - Tamarack Valley Energy Ltd. (TSX: TVE) (\"Tamarack\" or the \"Company\") is pleased to confirm its 2020 capital budget, announce its associated 2020 guidance and provide an operational update on the continued success of its Veteran waterflood project. Incorporating December field estimates, Tamarack's 2019 average production volumes were within the annual guidance range of 23,500 to 24,500 boe/d. In addition, the Company exited the year with an oil and natural gas liquids (\"NGL\") weighting unchanged from Q1/19, despite the production curtailments imposed by the Government of Alberta, which impacted oil volumes for the majority of the year. 2020 Guidance The Company's 2020 guidance and assumptions are outlined below:Capital budget is between $170 and $180 million which is forecast to maintain volumes consistent with the Company's 2019 annual average production of 23,500 to 24,500 boe/d (64% to 66% oil and NGL), with further increases in the oil and NGL weightings by the end of the year. Oil weighting to increase by 7% to 12% in 2020. Anticipated increases in waterflood response at Veteran are expected to partially offset Tamarack's corporate oil decline rate, resulting in the Company exiting Q4/20 with an oil weighting ranging between 59% and 62%, an increase from 55% in Q3/19, while its total liquids weighting at exit 2020 is expected to range between 65% and 68%, increasing from 62% in Q3/19. Year end 2020 estimated net debt to Q4 annualized adjusted operating field netback ratio is forecast at less than 1.0 times, with a minimum of $150 million of liquidity on existing credit facilities.Average 2020 commodity price assumptions of WTI US$55.50/bbl, a MSW / WTI differential of US$6.85/bbl, AECO $1.75/GJ and a Canadian/US dollar exchange rate of $0.7675. 2020 Capital Program HighlightsOver the past several years, Tamarack has maintained a disciplined capital allocation strategy designed to achieve sustainability through environments of weak and volatile oil prices, while continuing to direct excess adjusted operating field netback to purchase its common shares (the \"Shares\") under its normal course issuer bid (\"NCIB\") program. During the 12 months ended December 31,...