Tamarack is currently involved in five areas: Wilson Creek (Cardium oil – Alberta) is their largest area with 7,380 boe of production during Dec/16 – and have over 200 locations in inventory. Their cost per well is $2.6-2.8M with IP 30 rates of 390-645 boe/d. The other core areas are the recently acquired Spur Viking areas in Saskatchewan, with 6,600 boe/d of production and nearly 700 locations in inventory. Their cost per well here is $700K, with IP 30 rates of 70-116 boe/d, at Redwater (1,150 boe/d in Dec/16 – Alberta), Penny (light sweet Barons oil 1,160 boe/d in Dec/16 – well cost of $3.2M and IP 30 rates of nearly 400 boe/d in Alberta) and Saskatchewan (heavy oil).
* Initial rates first 30 days of production
The overall corporate decline rate is at a high 33-34% which necessitates a more active program each year to replace declines and show growth. TVE has the infrastructure to grow the company to over 30,000 boe/d with minimal facility upgrade expenditures.
For development activity in 2017, TVE plans on drilling 100-110 wells on its Viking lands, lifting production to 10,000 boe/d by the end of the year from 6,600 at the end of 2016. At Wilson Creek and Alder Flats they plan on drilling 15-17 wells; at Redwater 10-15 wells and at Penny 4-6 wells to double production to 2,000 boe/d. In Q1/17 they had three rigs running; two at Pembina for the Cardium, and one in Saskatchewan focused on the Viking. In Q1 they should have drilled and completes 34 wells in the Viking.