Tamarack Valley Energy Reports 43-percent Jump in PDP Reserves

Tamarack Valley Energy Ltd. (TSX:TVE) announced the results of an independent oil and gas reserves evaluation. The evaluation is dated December 31, 2016 and does not include the impact of the company’s Spur Resources Ltd. acquisition.
According to the company, its proved developed producing reserves (PDP) reserves grew 43 percent on an absolute basis and by 5 percent per fully diluted share.
Highlights of the reserves report are as follows:

• Increased 1P reserves by 34% to 33.4 million boe, and 2P reserves by 26% to 56.5 million boe.
• Oil and natural gas liquids (“NGLs”) weighting across all reserves categories increased to approximately 60% compared to 2015 weightings of approximately 50% on PDP, 52% on 1P and 54% on 2P.
• Significant increases in oil reserves of 85%, 67% and 45% on PDP, 1P and 2P, respectively, over 2015.
• As a percentage of total 2P reserves, 1P reserves increased from 56% to 59%.
• Including acquisitions, the Company replaced 322% of production on a 1P basis and 406% on a 2P basis.
• Maintained a consistent approach to reserves booking, with 1P reserves including only 67 (52.6 net) proved undeveloped horizontal Cardium drilling locations and 2P reserves including only 103 (81.1 net) proved plus probable undeveloped horizontal Cardium drilling locations.
• Achieved 1P finding and development (“F&D”) costs of approximately $14.44/boe and 1P finding, development and acquisition (“FD&A”) costs of approximately $14.68/boe, both including the change in future development capital (“FDC”).
• Achieved 2P F&D costs of approximately $7.20/boe and 2P FD&A costs of approximately $11.34/boe, both including the change in FDC.
• Realized three year average 2P F&D costs of approximately $15.14/boe and 2P FD&A costs of $15.68/boe, both including the change in FDC.
• Generated a 2P F&D recycle ratio of 2.3 times and a 2P FD&A recycle ratio of 1.5 times using the estimated 2016 operating netback, excluding hedges, of $16.55/boe (unaudited) and a 2P F&D recycle ratio of 3.1 times and a 2P FD&A recycle ratio of 1.9 times using the estimated Q4 2016 operating netback, excluding hedges, of $22.03/boe (unaudited).
• Increased 2P reserve life index to 15.0 years based on estimated 2016 average production of 10,344 boe/d

Click here to read the full Tamarack Valley Energy Ltd. (TSX:TVE) press release.