Tourmaline Raises Production Guidance; Updates Production, Capital Spending and EP Activity

About this update from Tourmaline Oil Corp.

[{"type":"text","content":"\n\n\n\n\n\nCALGARY, Jan. 25, 2012 /CNW/ - Tourmaline Oil Corp. (TSX: TOU)\n (\"Tourmaline\" or the \"Company\") is pleased to provide the following\n production, capital spending and EP activity updates.\n\n\nProduction\n\n\nCurrent production has reached 47,000 boepd, achieving the original full\n year 2012 average production target ahead of schedule.  Ongoing tie-ins\n during the next week are expected to increase production levels to\n 50,000 boepd or greater.  Current oil, condensate and natural gas\n liquids production is approximately 6,500 boepd, and is expected to\n reach the 10,000 boepd level by the fourth quarter of 2012.  Driven by\n continued strong drilling results and field execution, full year 2012\n average production guidance has been increased to 50,000 boepd. \n Tourmaline's year over year 2012 vs 2011 average production growth is\n now well in excess of 50%.\n\n\n2012 Capital Program\n\n\nGiven the current natural gas price environment, the Company is reducing\n planned 2012 capital spending to $400 million, down from the originally\n planned $490 million.  First quarter 2012 capital spending of $150.0\n million is currently anticipated.  Full year 2012 forecast cash flow is\n $429.6 million, down from original 2012 guidance of $440.7 million. \n Lower natural gas prices, partially offset by increased production\n levels and a higher proportion of oil and liquids, are responsible for\n the modestly reduced cash flow.\n\n\nTourmaline has maintained a strong balance sheet and expects ongoing net\n debt to cash flow ratios to remain in the six to eight month range.\n\n\nEP Program\n\n\nTourmaline's ongoing drilling and completion results continue to\n significantly exceed type curve expectation in all operated areas. \n Recent production test1 highlights from the December-January period include:\n\n\nKakwa 13-25 Wilrich horizontal tested liquids rich gas at average rates\n of 22.8 mmcfpd at a flowing pressure of 18.5 MPa.\n\n\nSunrise b4-25 and c4-25 tested liquids rich Montney gas at average rates\n of 24.2 and 28.9 mmcfpd, respectively.\n\n\nThe Spirit River 15-4 Charlie Lake horizontal tested oil at average\n rates of 650 bopd with 1.0 mmcfpd of associated gas.\n\n\nAnderson 8-6 vertical tested liquids rich gas from the\n Notikewin-Falher-Wilrich section at average ra...

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