Canadian oil and gas producer Tourmaline Oil Corp. announced a development plan May 29 that targets a free cash flow increase of C$840 million to a total of C$3.05 billion over the next five years.
Annual production and cash flow remain unchanged from its previous plan. However, the company said it removed C$430 million of future facility expenditures from the previous five-year plan.
Tourmaline will direct growth capital to its Gundy BC Montney development and plans to proceed with the Gundy Phase 2 deep cut expansion to 400 million cubic feet per day, expected to be completed in the fourth quarter of 2021. The expansion is projected to raise the company's total liquid volumes to about 85,000 barrels per day by the fourth quarter of 2021.
In its first-quarter earnings release, the company said it is on track to reach its full-year liquid production forecast average of 66,000 barrels per day, and the new Gundy deep cut facility will provide growth for the rest of the year.
In addition, the company announced that there will be no incremental facility investments in the plan for the Alberta Deep Basin and Peace River High complexes, which will progress to "maintenance capital mode."