Traverse Energy Ltd. revised exploration and development guidance for the year 2015. For the year, the company approved a reduction in the 2015 exploration and development program as a result of the current commodity price environment. The exploration and development program for 2015 of $34 million has been reduced to $15 million. The corporation's drilling program for 2015 has been reduced from 14 wells, including 7 horizontals, to an estimated 7 wells, including 2 horizontals. The 2015 drilling program will continue to focus on light oil projects at Coyote and Michichi in southern Alberta. The budget is to be financed by cash flow and new equity issues or debt where appropriate.

In 2014, the company drilled 14 wells resulting in 9 oil wells and 5 natural gas wells. At the end of 2014, 7 oil wells and 3 gas wells had commenced production with the remaining wells completed and awaiting tie in. The Coyote battery expansion was completed in the third quarter with clean oil shipments commencing in late August. The facility is licensed to treat up to 2,000 barrels of oil and water and 4 mmcf of gas per day. At Turin, Traverse completed the installation of a booster compressor at the central battery. Total capital expenditures for 2014 are estimated at $31 million. The first two horizontal wells drilled in the Coyote Ellerslie pool were completed in October and commenced production in mid-November. The first well completed averaged 173 BOE/day from the beginning of test to the end of January.

For the month of January 2015, the company's average production was 88 BOE/day. The second well completed averaged 353 BOE/day from the beginning of test to the end of January. Average January production from this well was 253 BOE/day. These averages are calculated utilizing producing hours - the wells were on production 90% of the time during December and January. The wells encountered some initial production issues due to the recovery of fracture sand placed during completion operations.