Calgary β Tuscany Energy Ltd. is deferring all but required capital projects in 2015 until oil prices show sustainable gains.
The decision announced on Jan. 6 is aimed at managing their balance sheet on a day when oil prices stayed below $49 a barrel.
βTuscanyβs management believes that the recent sharp downturn in oil prices will result in a global reduction in drilling activity and by the end of the first half of 2015 North
American production levels should decline significantly, resulting in a steady recovery in oil prices,β said the company.
Meanwhile, the Calgary-based company reported their overall production increased to more than 1,000 barrels of oil equivalent a day at the beginning of 2015.
The boost comes from the completion of two horizontal heavy oil wells on Tuscanyβs north Macklin property and an initial horizontal heavy oil well on their Morgan property in Alberta.
All of these wells provide Tuscany with new offsetting development locations, to be drilled when oil prices recover.
The first new Macklin well was placed on production in the first week of December and is producing at an estimated rate of 125 barrels of oil equivalent per day as of Jan. 6.
The second Macklin well was placed on production mid-December and is producing at an estimated rate of 75 boepd. Tuscany holds a 100 per cent working interest
in the Macklin property. The initial well Morgan well was placed on production late in December 2014 at approximately 40 boepd.
Tuscany holds an 88 per cent working interest in the Morgan property.
