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Tamarack Valley Energy Ltd. Announces Revised 2020 Capital Program
Calgary, Alberta--(Newsfile Corp. - March 18, 2020) - Tamarack Valley Energy Ltd. (TSX: TVE) (...
About this update from Tamarack Valley Energy Ltd.
[{"type":"text","content":"Tamarack Valley Energy Ltd. Announces Revised 2020 Capital ProgramCalgary, Alberta--(Newsfile Corp. - March 18, 2020) - Tamarack Valley Energy Ltd. (TSX: TVE) (\"Tamarack\" or the \"Company\") today announces proactive revisions to its 2020 capital budget and associated guidance in response to events impacting the global oil and gas industry. Tamarack remains committed to enhancing its long-term sustainability and to executing a measured capital program that is fully funded with internally generated adjusted funds flow (see \"Non-IFRS Measures\"), while ensuring that the Company is well positioned for 2021. Given low crude prices and the impact of the Coronavirus (COVID-19) pandemic, Tamarack has revised its capital plans and established a more defensive capital program with the focus on preserving liquidity and its balance sheet strength. The Company's 2020 capital program has been adjusted to $95 - $105 million, which enables Tamarack to maintain a net debt to annualized adjusted funds flow ratio (see \"Non-IFRS Measures\") of less than two times at current strip prices ($35.00/bbl WTI in 2020). The Company will continue to monitor changes in the market and adapt its capital and operating plans in response to these dynamic conditions. Despite the reduction in capital expenditures, Tamarack remains committed to ongoing environmental, social and governance (\"ESG\") initiatives including a well abandonment program, methane capture projects and the continued support of Indigenous culture and education through engagement of its First Nations partners.The Company is positioned to withstand further crude oil price volatility as approximately 43% of its first half 2020 oil production is protected with derivative contracts at US$58.21/bbl and 26% of its second half 2020 oil production is protected with derivative contracts at US$55.32/bbl. At the current strip prices noted below, Tamarack anticipates full year hedging gains of approximately $42 million.Tamarack also confirms that the Company has a comprehensive risk management plan in place to deal with the impact of the COVID-19 pandemic. This plan includes proactive measures taken to ensure a safe workplace for all employees, contractors and consultants across the organization along with mitigation strategies for the various potential business risks which could be associated with CO...