CALGARY, AB. — Tourmaline Oil Corp. released a production and marketing update and announced an increase to the 2023 cash flow guidance of 28 per cent.

In a release from the company, Tourmaline says it increased the 2023 cashflow guidance to $6.58 billion, up 28 per cent from the previous $5.14 billion.

Average producing guidance for 2023 remains at 545,000 boepd (barrel of oil equivalent per day).

Tourmaline reportedly expects to export approximately 926 mmcfpd (thousand cubic feet per day) of natural gas at the end of 2023, including an initial 140 mmcfpd on the Gulf Coast exposed to JKM (Japan Korea Marker) pricing, which will begin on January 1st, 2023.

The release states that due to the Alberta and B.C. pipeline maintenance and gas price collapse at AECO and Station 2 in the second half of August, it shut in approximately 100 mmcfpd of existing production as well as delayed the startup of several new pads from August to September or October 2022.

Tourmaline also reportedly scheduled turnarounds and hedged higher than usual natural gas volumes during August 2022.

Volumes were also impacted by an unscheduled outage at the Pembina Resthaven deep cut facility caused by startup issues that lasted five days.

With those changes, third quarter production averaged 480,000 to 485,000 boepd compared to the anticipated amount of 485,000 – 495,000 boepd.

Fourth quarter production guidance is expected to average between 525,000 to 530,000 boepd. The full-year production for 2022 remains unchanged at 507,000 boepd.

The release says approximately 26 per cent of 2023 average production is now hedged at a weighted average fixed price of $5.26 per mcf (thousand cubic feet) Canadian. Tourmaline has 110 mmcfpd of natural gas hedged at a basis to NYMEX of $0.12 per mcf USD.

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Shailynn Foster

Shailynn Foster is a news reporter for Shailynn has been writing since she was 7 years old, but only recently started her journey as a journalist. Shailynn was born and raised in Fort St. John and she watches way too much YouTube, Netflix and Disney+ during the week while playing DND on the weekends.