Tourmaline Oil Stock

Tourmaline Oil Corp. engages in the acquisition, exploration, development, and production of oil and natural gas properties.

The company’s three core long-term growth areas are the ‘Alberta Deep Basin’, including the area within the Western Canadian Sedimentary Basin (WCSB) from Edmonton, Alberta to approximately 400 kilometer (km) west; ‘NEBC Montney’ that includes the area extending from Grande Prairie, Alberta to approximately 175 km northwest of Fort St. John, British Columbia; and the ‘Peace River High Triassic Oil Complex’ spans from 125 km north of Grande Prairie, Alberta to 60 km south of Grande Prairie, Alberta and includes the Wapiti Cardium area.

Alberta Deep Basin Core Area

The Alberta Deep Basin core area is a multi-objective tight natural gas sand play area with up to fifteen separate lower Cretaceous liquids-rich natural-gas-charged sand reservoirs.

The company has 3,876 vertical development locations, including 450 gross outer foothills thrust belt vertical wells with geologic and economic parameters similar to those of the horizontal inventory. The company has ownership interests in fifteen natural gas plants in the Alberta Deep Basin, eight of which (the Wild River 14-20, the Hinton 6-32, the Anderson 1-9, the Cecilia 15-04, the Edson 4-17, the Route 7- 09, the Oldman 10-24 and the Sundance 15-7) are 100% owned and operated by the company. In aggregate, the company has in excess of 1.5 billion cubic feet per day (Bcf/d) of natural gas processing capability within this plant network.

As of December 31, 2020, the company drilled approximately 890 gross natural gas wells in the Alberta Deep Basin and intends to drill approximately 100 additional gross wells in 2021. The company is the largest producer in the Alberta Deep Basin with production estimated at approximately 250,000 barrel of oil equivalent per day (Boe/d). The company's landholdings in the core area are approximately 3,681 gross sections.

As of December 31, 2020, the company’s proved plus probable reserves were 1,474.9 million barrels of oil equivalent (MMboe) in the Alberta Deep Basin, with approximately 948 gross (853.6 net) future drilling locations.

NEBC Montney

The company’s second core exploration and production area on the west flank of the Peace River High in NEBC (north east British Columbia) is focused on liquids rich natural gas in the Triassic Montney formation.

As of December 31, 2020, the company drilled approximately 560 Montney multi-stage fracture-stimulated horizontal natural gas wells in NEBC with an additional approximately 115 gross Montney horizontal wells planned for 2021.

The company owns and operates five significant natural gas processing facilities with aggregate capacity of approximately 470 million cubic feet per day (MMcf/d) with related gas gathering systems and NGL handling infrastructure in the NEBC complex. This infrastructure complex includes a 200 MMcf/d ethane rejection deep cut gas processing facility installed at Gundy CK in 2019. To further support the company's development plans in the area, the company is also planning an additional 200 MMcf/d expansion of the Gundy facility for early 2022. Production in the NEBC Montney complex is approximately 625-650 MMcf/d of natural gas and a combined 30,000 barrels (bbls) per day of associated natural gas liquids (NGLs), condensate and crude oil.

As of December 31, 2020, the company held approximately 655 gross sections of Montney rights in NEBC with 1,578.1 MMboe of proved plus probable reserves evaluated by the independent engineers, including approximately 1,042 gross (983.7 net) future drilling locations.

Peace River High Triassic Oil Complex

The third core area on the Alberta portion of the greater Peace River High is the company's exploration and production complex at Spirit River-Mulligan-Earring and Wapiti, Alberta. The majority of the production in the complex is derived from oil and natural gas-charged reservoirs of the Triassic Charlie Lake and Montney formations, as well as the newly added Wapiti Cardium formation. This area, producing approximately 23,000 Boe/d net to the company, has a large inventory of vertical and horizontal development drilling prospects in the Charlie Lake, Montney, and Wapiti Cardium formations, as well as attractive plays in several other formations.

The company drilled 355 horizontal oil wells as of December 31, 2020 and plans an additional approximately 10 gross horizontals through 2021. As of December 31, 2020, the company had a defined inventory of 1,179 future Charlie Lake horizontal locations (gross), 252 Wapiti Cardium horizontals (gross), and 631 Montney horizontals (gross).

Proved plus probable reserves in the area as of December 31, 2020 were estimated to be 261.9 MMboe, including approximately 589 gross (571.7 net) future drilling locations. The company owns and operates two significant oil batteries capable of handling 50,000 bpd of fluids and the associated natural gas is delivered to a third party for processing. The company also has an owned and operated 60 MMcf/d sour gas processing facility at Spirit River.

Business Strategy

The company’s long-term business strategy is to increase shareholder value by providing both strong and predictable long-term growth and a steady return to shareholders through an aggressive exploration, development, production and acquisition program in the WCSB by building its extensive asset base in its three core exploration and production areas and exploiting and developing these areas to increase reserves and production. The company seeks to execute this strategy by aggressively drilling and developing its extensive undeveloped land position; adopting and employing advanced drilling and completion techniques; pursuing strategic acquisitions with significant potential synergies; and undertaking wildcat exploration drilling for new pool discoveries.

History

Tourmaline Oil Corp. was founded in 2008. The company was incorporated under the laws of the province of Alberta in 2008.