Tapping liquids-rich Canadian unconventional natural gas and a continent-wide marketing program paid off for Tourmaline Oil Corp. in the first three months of this year.

AECO may 5

As the top natural gas producer drilling only in Canada, the Calgary explorer scored a 30% gain to 1.91 Bcf/d in the quarter from 1.47 Bcf/d a year earlier. Liquids production grew by 47% to 91,971 b/d from 62,569 b/d.

With a C$1 billion ($800 million) capital budget, the company expects to continue growing throughout this year.

An environmental, low-emissions twist is to be added to hydraulic fracturing used on Alberta and British Columbia gas development too. A joint venture with contractor Trican Well Service Ltd. plans to replace diesel with natural gas as pump engine fuel.

Emissions cuts, cost...