Tamarack Valley Energy Ltd. (TSX VENTURE:TVE) ("Tamarack" or the "Company") is pleased to announce that a successful second half 2014 drilling program in the Wilson Creek area contributed to a record exit production rate averaging approximately 9,700 boe/d (based on field estimates) during the last 14 days of December, 2014, exceeding its exit production target of 9,500 boe/d. All 10.9 net wells drilled in the fourth quarter were brought on production at various times during December, 2014. The Company, based on field estimates, averaged approximately 8,500 boe/d during the month of December, 2014 with an oil and natural gas liquids weighting of approximately 63%.
Wilson Creek Operations Update
Tamarack's operated oil battery located in the Wilson Creek area of Alberta, had a fire-tube failure in the treater, early yesterday, causing a small fire that was extinguished within hours. As a result, capacity at this oil battery will be temporarily curtailed. The Company expects the oil battery to be shut down for three days at which point it is expected the facility will be able to run at approximately 75% of capacity until final repairs can be completed later in the month. Prior to the fire-tube failure, the oil battery was processing 3,700 to 3,800 bbls/d of oil and Tamarack was expecting to average approximately 9,400 to 9,500 boe/d in January, 2015, from the wells that were on production at the end of 2014. The Company will provide an update of the expected impact of this curtailment to first quarter production average, when it disseminates its 2015 guidance later in January, 2015.
Tamarack recently took over operation of this oil battery as part of the Wilson Creek acquisition which closed on September 30, 2014.
During the fourth quarter, Tamarack drilled 13 (10.9 net) Cardium wells in the Wilson Creek/Alder Flats area, which is 2.0 net wells less than originally planned due to continual declining commodity prices. The Company is currently finalizing its 2015 capital expenditure plan that will be disseminated after receiving Board approval, expected later in January, 2015. Tamarack will base its 2015 capital expenditure plan using strip commodity prices which are currently approximately $55.00/bbl USD for WTI and $2.80/GJ at AECO.
Tamarack currently does not have any drilling or completion operations underway.