TOURMALINE OIL CORP. OPERATIONAL UPDATE

CALGARY, ALBERTA – (September 12, 2011)

Tourmaline Oil Corp. (TSX: TOU) (“Tourmaline” or the “Company”) is pleased to provide the following operational update and to announce that it is participating in the Peters & Co. Ltd. North American Oil & Gas Conference where it will be presenting at 10:15 am on Wednesday, September 14, 2011. This presentation will be webcast live and will be available at “http://newswire.ca/en/webcast/viewEvent.cgi?eventID=3643860. As well a PDF version of the presentation will be available on Tourmaline’s website www.tourmalineoil.com in advance of the presentation.

 

EP Drilling Program

Tourmaline is currently operating a total of eight drilling rigs, six active in the Alberta Deep Basin, one rig at Spirit
River Alberta and one targeting Montney objectives at Sunrise-Dawson BC. Of the eight active rigs, five are currently drilling horizontal targets. The Company intends to maintain the fleet of eight operated rigs continuously through until Spring Break-Up 2012.

 

Recent Results

The Company has recorded its highest ever individual well deliverabilities in each of its operated areas during the past three months.

Tourmaline is expecting to drill and complete an additional 20 horizontal wells in the Alberta Deep Basin prior to year end, as well as 8 additional Montney horizontals at Dawson-Sunrise BC and 5 Charlie Lake horizontals at Spirit River Alberta. The majority of these wells will be tied in by year end 2011 with the balance coming on-stream in the first quarter of 2012.

 

Production

Corporate production has now reached 37,000 boepd in September, over 3,500 boepd higher than previously reported mid-August production levels. The Company remains on track to achieve full year average production guidance of 31,125 boepd, which has been revised upwards twice so far in 2011.

 

Asset Consolidation

During the second and third quarter of 2011 Tourmaline completed three separate asset acquisitions as part of the Company’s ongoing effort to consolidate working interests in key, core operated properties. In June, the Company completed transactions in the Minehead and Musreau areas of the Alberta Deep Basin and in September the Company acquired assets in the Sunrise area of BC. Total cash value for the three transactions is approximately $93.0 million, with estimated aggregate production additions of 1,750 boepd and total Proved Plus Probable reserve additions of approximately 9.5 mmboe.

 

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information. More particularly and without limitation, this press release contains forward looking information concerning Tourmaline’s anticipated petroleum and natural gas production and production growth, the number of drilling rigs to be operated, as well as Tourmaline’s future drilling prospects and plans, including the number and type of wells to be drilled in core areas, business strategy, future development and growth opportunities, prospects and asset base. The forward-looking information is based on certain key expectations and assumptions made by Tourmaline, including expectations and assumptions concerning: prevailing commodity prices and exchange rates; applicable royalty rates and tax laws; future well production rates and reserve volumes; the timing of receipt of regulatory approvals; the performance of existing wells; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; and the availability and cost of labour and services. Undue reliance should not be placed on the forward-looking information because Tourmaline can give no assurances that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations. Readers are cautioned that the foregoing list of factors is not exhaustive.

Forward-Looking InformationAdditional information on these and other factors that could affect Tourmaline, or its operations or financial results, can be found in the Annual and Quarterly reports (See “Forward-Looking Statements” therein) on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or Tourmaline’s website (www.tourmalineoil.com).

The forward-looking information contained in this press release is made as of the date hereof and Tourmaline undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless expressly required by applicable securities laws.

Disclosure provided in respect of barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

 

BOE Equipment

Disclosure provided in respect of barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

Tourmaline Oil Corp.
Michael Rose
Chairman, President and Chief Executive Officer
(403) 266-5992

OR

Tourmaline Oil Corp.
Brian Robinson
Vice President, Finance and Chief Financial Officer
(403) 767-3587; robinson@tourmalineoil.com

OR

Tourmaline Oil Corp.
Scott Kirker
Secretary and General Counsel
(403) 767-3593; kirker@tourmalineoil.com

OR

Tourmaline Oil Corp.
Suite 3700, 250 – 6th Avenue S.W.
Calgary, Alberta T2P 3H7
Phone: (403) 266-5992
Facsimile: (403) 266-5952
E-mail: info@tourmalineoil.com
Website: www.tourmalineoil.com