Tamarack Valley Energy Ltd.
TSX VENTURE : TVE

Tamarack Valley Energy Ltd.

February 15, 2011 07:15 ET

Tamarack Valley Provides Operational Update on Cardium Drilling and Land Acquisition Programs

CALGARY, ALBERTA--(Marketwire - Feb. 15, 2011) - Tamarack Valley Energy ("Tamarack" or the "Company") (TSX VENTURE:TYE) is pleased to provide the following operational update. During Q4 2010, Tamarack averaged 856 boe/d of production, weighted 85% to natural gas. This compares to average production of 723 boe/d in Q3 2010, weighted 98% to natural gas. The Company continues to focus on executing its strategy of significantly increasing its oil production weighting and increasing the number of potential oil drilling locations.

Tamarack's first Lochend Cardium oil well, drilled in late 2010, continues to exceed internal estimates. This 1,200 metre horizontal well at 16-32-26-3W5 was completed with a successful 12 stage fracture stimulation, and began producing November 23, 2010. It flowed until January 27, 2011 at which time the Company temporarily shut in the well in order to install pumping equipment. The following table summarizes the average calendar day and production day boe rates post recovery of load fluid. 

  16-32-26-3W5 Average Production Rate Over Indicated Period  
  Oil (bopd ) Gas (mcf/d ) Boepd  
Production day basis            
7 day average 651   985   815  
30 day average 379   714   498  
60 day average 250   702   367  
13 days since on pump* 155   388   220  
             
Calendar day basis            
7 day average 651   985   815  
30 day average 298   497   381  
60 day average 230   470   308  
13 days since on pump* 153   383   217  

* based on field estimates

This remains one of the top performing wells in the Lochend/Garrington area. As a result of the very encouraging results for this well, Tamarack plans to drill its first Lochend well offsetting the 16-32 location before the end of Q1 2011 or in early Q2 2011 assuming rig availability. The 8-29 well is licensed and will be drilled off the same pad as 16-32. The company is obtaining necessary approvals to grow its drilling program for Lochend in 2011.

In Garrington, central Alberta, Tamarack has now drilled and completed its first Cardium oil well.

  • The exploration well located at 16-36-31-3W5 was drilled horizontally 1,400 metres and was successfully completed with a 14 stage oil fracture stimulation in January 2011.
  • The well was flowed back then swabbed until 70% of the load was recovered at which time there was a strong indication of Cardium formation oil and gas recovery.
  • Recorders were placed in the well for a 10 day build up and the well was equipped for pumping.
  • The well commenced pumping February 2, 2011 and during the next 11 days, the well averaged 124 boe/d (116 bopd, 46 mcf/d) gross rates. The well has recovered approximately 90% of its load oil, however nearly all of the current volumes are comprised of formation fluid as evidenced by the amount of solution gas being produced with the oil.
  • It is early in the life of this well and Tamarack will report updated flow information as it becomes available. The Company continues to believe that wells in this area will, on average, achieve its expected production type curve.

Tamarack has been building its land base around a third core area to a size that is significant to the Company. During the last few months Tamarack has acquired an additional 5,760 net acres of land in our Viking oil play, in which we now control a total of 10,800 net acres. With the addition of this land, the Company's unrisked drilling inventory has increased to 93 locations.

About Tamarack Valley Energy Ltd.

Tamarack Valley Energy Ltd. is an oil and gas company involved in the identification, evaluation and operation of resource plays in the western Canadian sedimentary basin. The Company uses a rigorous, proven modeling process to carefully manage risk and identify growth opportunities and has assets in the Lochend, Harmattan/Garrington and Quaich areas in Alberta and in Inga, Red Creek and Wilder areas in northeast BC.

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Forward Looking Information

This press release contains certain forward-looking statements within the meaning of applicable securities laws, including statements relating to expected production curve, number of potential inventory locations and location and timing of additional drilling. These statements are based on assumptions relating to current well performance and drilling by others in the area, historical reserve analysis, reservoir quality, the current business and investment climate of the oil and gas business, availability of services and the current business projections of the management of Tamarack. Although management considers these assumptions to be reasonable based on information currently available to it, undue reliance should not be placed on the forward-looking statements because Tamarack can give no assurances that they may prove to be correct.

By their very nature, forward-looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward-looking statements will not be achieved. These risks and uncertainties include, but are not limited to: risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production of wells; lack of services, delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production, costs and expenses, health, safety, litigation and environmental risks and the risks inherent in the estimation of reserves); the risk of commodity price and foreign exchange rate fluctuations, the ability to access sufficient capital from internal and external sources, changes in tax, royalty and environmental legislation and activity by others in the drilling area. Due to the nature of the oil and natural gas industry, drilling plans and inventories are regularly reviewed in light of the success of expenditures and other opportunities which may become available to Tamarack.

The forward-looking statements contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Tamarack Valley Energy Ltd.
    Brian Schmidt
    President & CEO
    403.263.4440
    or
    Tamarack Valley Energy Ltd.
    Ron Hozjan
    VP Finance & CFO
    403.263.4440
    www.tamarackvalley.ca