Calgary, Alberta – Tourmaline Oil Corp. (TSX – TOU) (“Tourmaline” or the “Company”) is pleased to provide the following production, capital spending and EP activity updates.


Current production has reached 47,000 boepd, achieving the original full year 2012 average production target ahead of schedule. Ongoing tie-ins during the next week are expected to increase production levels to 50,000 boepd or greater. Current oil, condensate and natural gas liquids production is approximately 6,500 boepd, and is expected to reach the 10,000 boepd level by the fourth quarter of 2012. Driven by continued strong drilling results and field execution, full year 2012 average production guidance has been increased to 50,000 boepd. Tourmaline’s year over year 2012 vs 2011 average production growth is now well in excess of 50%.


2012 Capital Program

Given the current natural gas price environment, the Company is reducing planned 2012 capital spending to $400 million, down from the originally planned $490 million. First quarter 2012 capital spending of $150.0 million is currently anticipated. Full year 2012 forecast cash flow is $429.6 million, down from original 2012 guidance of $440.7 million. Lower natural gas prices, partially offset by increased production levels and a higher proportion of oil and liquids, are responsible for the modestly reduced cash flow.

Tourmaline has maintained a strong balance sheet and expects ongoing net debt to cash flow ratios to remain in the six to eight month range.


EP Program

Tourmaline’s ongoing drilling and completion results continue to significantly exceed type curve expectation in all operated areas. Recent production test1 highlights from the December-January period include:

  • Kakwa 13-25 Wilrich horizontal tested liquids rich gas at average rates of 22.8 mmcfpd at a flowing pressure of 18.5 MPa.
  • Sunrise b4-25 and c4-25 tested liquids rich Montney gas at average rates of 24.2 and 28.9 mmcfpd, respectively.
  • The Spirit River 15-4 Charlie Lake horizontal tested oil at average rates of 650 bopd with 1.0 mmcfpd of associated gas.
  • Anderson 8-6 vertical tested liquids rich gas from the Notikewin-Falher-Wilrich section at average rates of 10.1 mmcfpd at a flowing pressure of 3.3 MPa.
  • Wild River 13-25 Wilrich horizontal tested liquids rich gas at rates of 13.8 mmcfpd at a flowing pressure of 5.9 MPa.

The Company is currently operating nine drilling rigs; the operated fleet will be reduced to six rigs by early March 2012. Tourmaline is not planning to operate drilling rigs during break-up in the second quarter this year; drilling operations will resume in July. Tourmaline will move a second rig into Spirit River in February accelerating development of the expanding horizontal light oil opportunity there.

With the start-up of the Musreau plant and expanded Sunrise gas plant, the majority of the ongoing infrastructure construction plan is complete; hence, facility expenditures will be significantly lower in 2012. Tourmaline now has processing capacity of 275-300 mmcfpd in the Alberta Deep Basin and 75 mmcfpd in the Dawson-Sunrise BC complex. This owned and operated gas plant and pipeline network allows the Company to realize steadily lower operating costs and improving production efficiencies.

Tourmaline’s updated corporate presentation is available on its website @


Tourmaline is a Canadian intermediate crude oil and natural gas exploration and production company focused on long-term growth through an aggressive exploration, development, production and acquisition program in the Western Canadian Sedimentary Basin.


Non-IFRS Measures

This news release includes references to financial measures commonly used in the oil and gas industry such as “cash flow” and “net debt”, which do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”). Management believes that in addition to net income, cash flow and net debt are useful supplemental measures as they are a measure of a company’s ability to generate the cash necessary to repay debt or fund future growth through capital investment. However, investors are cautioned that these measures should not be construed as an alternative to net income determined in accordance with IFRS as an indication of Tourmaline performance. The method of calculating these measures may differ from other companies and, accordingly, they may not be comparable to similar measures used by other companies. For these purposes, “cash flow” is defined as cash provided by operations before changes in non-cash working capital and “net debt” is defined as long-term bank debt plus working capital (adjusted for the fair value of financial instruments and future taxes).


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, production growth and production mix, capital spending levels and the timing thereof, anticipated cash flow levels and debt to cash flow ratios, the number of drilling rigs to be operated, facility expenditure levels, operating costs and production efficiencies 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 currency 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 and recently drilled and tested 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 currency 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.

Also included in this press release are estimates of Tourmaline’s 2012 cash flow, which are based on the various assumptions as to production levels, capital expenditures, and other assumptions disclosed in this press release and including commodity price assumptions (Gas: AECO – $3.25/mcf and Oil: WTI – $100 US) as well as exchange rate assumptions of $0.98 (US/CDN). To the extent such estimates constitute a financial outlook, they were approved by management of Tourmaline on January 20, 2012 and are included to provide readers with an understanding of Tourmaline’s anticipated cash flow based on the capital expenditures and other assumptions described herein and readers are cautioned that the information may not be appropriate for other purposes.

Additional information on these and other factors that could affect Tourmaline, or its operations or financial results, can be found in Tourmaline’s most recent Annual Information Form and Annual and Quarterly Management’s Discussion and Analysis on file with applicable securities regulatory authorities and may be accessed through the SEDAR website ( or Tourmaline’s website (

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.


Additional Advisories

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. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

In this press release: boepd means boe per day; mcf means thousand cubic feet, bbl means barrel; bopd means barrels per day; mmcf means million cubic feet; mmcfpd means million cubic feet per day; mboe means thousand boes; and MPa means megapascals.


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


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


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


Tourmaline Oil Corp.
Suite 3700, 250 – 6th Avenue S.W.
Calgary, Alberta T2P 3H7
Phone: (403) 266-5992
Facsimile: (403) 266-5952


(1) Three day tests or longer. Production tests are not necessarily indicative of long-term performance or ultimate recovery.