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Tourmaline Oil hits record daily output, but lowers full year production outlook

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Tourmaline Oil (TSE:TOU) said that two new gas facilities were successfully commissioned last week, with daily production reaching a record 136,000 barrels of oil equivalent per day (boep/d) on the back of the two projects.

The Musreau Alberta and Doe B.C. 50 mmcfpd plant expansions were completed, with the Doe B.C. facility start-up allowing for a 20 mmcfpd net production increase thus far. A further 30 mmcfpd is expected in mid-November with the start up of the associated Sunrise 15-34 compression expansion, the company said.

Musreau and Doe are the second and third of the five new facilities coming on-stream during the fourth quarter of this year, with the last two facilities to result in planned exit production volumes of between 150,000 to 155,000 boepd or more by 2014-end.

The company said it is currently anticipating average production of 164,500 boepd for 2015.

The start up of all five Tourmaline-operated facility projects were delayed, however, by about six weeks from the original dates established in the first quarter, reducing the company's full year average production forecast by approximately 5,500 boepd.

Ongoing and unplanned pipeline maintenance have also contributed to reduced production, with Tourmaline lowering its average production outlook as a result to 115,000 from 120,000 boepd previously. This still represents 54 percent year-over-year growth, Tourmaline noted.

The Canadian crude oil and natural gas producer, which is focused in the Western Canadian Sedimentary Basin, continues to operate 20 drilling rigs and is expecting to drill and complete 195 wells between mid May this year and March 2015. All of these wells are expected to come on stream by the second quarter of next year.

Tourmaline will issue its third quarter results after market close on November 5, it said.

Shares reversed earlier gains, falling by 1 percent to C$45.34 as of 2:28pm ET, after rising to as high as C$45.94 earlier in the session.

Quick facts: Tourmaline Oil Corp

Price: 18.08 CAD

TSX:TOU
Market: TSX
Market Cap: $4.92 billion
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