Calgary, Alberta – Tourmaline Oil Corp. (TSX – TOU) (“Tourmaline” or the “Company”) is pleased to provide the following production update and highlights from its independent year-end reserve evaluation.

Reserve Highlights

  • Total year-end Proved plus Probable (“2P”) reserves of 270.1 mmboe after only three full years of operation.
  • Total 2P reserve additions of 123.2 mmboe in 2011 representing 78% growth over 2010 total 2P reserves before 2011 production (47% per share). Similarly, Proved reserves grew by 72% in 2011 over 2010 (38% per share).
  • Year-end 2011 2P reserve value of $ 2.7 billion (10% discount, before tax), representing 72% growth over year-end 2010 2P reserve value, despite significantly lower forecast natural gas prices employed in the 2011 report.
  • Proved Developed Producing (PDP) reserves were increased by 102% in 2011 prior to production. Year-end 2011 PDP Reserve value equalled $1.0 billion (10% discount, before tax), providing the Company with significant financial flexibility.
  • Year-end 2011 total 2P oil and liquids reserves of 33.8 mmboe grew by 76% prior to production. 2011 2P finding, development and acquisition (FDA) costs of $9.12/boe excluding future capital, and $13.34/boe including future capital, down from $15.55/boe in 2010 including changes in future capital. 2011 total Proved FDA costs were $19.71/boe including future capital, down from
    $21.50/boe in 2010.
  • The 2011 independent reserves evaluation includes 381 future drilling locations, approximately 5% of the Company’s estimated future drilling inventory of 7,300 locations.
  • Total land and facility expenditures of $403.7 million in 2011, representing $3.28/boe (25%) of the 2P FDA cost.
  • Tourmaline has expended $326.6 million over the past two years constructing an extensive gas processing and pipeline system servicing the majority of its current properties in the Alberta Deep Basin and NEBC Montney core areas. This infrastructure allows the Company to be one of the lowest cost operators in these areas; future drilling locations will access this low cost, owned-and-operated system that is now in place.


Production Update

Daily production has now reached the 50,000 to 51,000 boepd level. The Company also has an additional 16 wells to tie-in to operated facilities prior to breakup that are expected to increase production levels to 53,000 – 54,000 boepd. Included in these additional wells are new high-deliverability horizontals at Spirit River, Kakwa, Resthaven and Edson. Full-year 2012 average production guidance was revised upward to 50,000 boepd from 47,000 boepd on January 25, 2012. Tourmaline has an additional 35 mmcfpd that could produce to third party facilities that it has elected to leave shut-in given current depressed natural gas prices.


2012 Budget Outlook

The Company has elected to reduce the 2012 capital program by an additional $25.0 million to $375.0 million. These deferred expenditures are almost entirely facility and infrastructure investments and hence have no impact on the upward-revised 2012 production forecast. First quarter 2012 capital spending of $155.0 million is currently anticipated. Given weaker than forecast natural gas prices, the Company has reduced its 2012 cash flow outlook to $370.0 million. Tourmaline will continue with its ongoing plan to maintain a debt to cash flow ratio of approximately 6 to 9 months.




Cautionary Statements

All amounts in this news release are stated in Canadian dollars unless otherwise specified.

Reserves Data
The reserves data set forth above is based upon the reports of GLJ Petroleum Consultants Ltd. (“GLJ”) and AJM Deloitte, each dated effective December 31, 2011, which have been consolidated into one report by GLJ and adjusted to apply certain of GLJ’s assumptions and methodologies and pricing and cost assumptions. The complete GLJ January 1, 2012 price forecast used in the reserve evaluations is available on their website at The consolidated report includes 100% of the reserves and future net revenue attributable to the properties of Exshaw Oil Corp, a subsidiary of the Company, without reduction to reflect the 9.4% third-party minority interest in Exshaw.

There are numerous uncertainties inherent in estimating quantities of crude oil, natural gas and NGL reserves and the future cash flows attributed to such reserves. The reserve and associated cash flow information set forth above are estimates only. In general, estimates of economically recoverable crude oil, natural gas and NGL reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserve recovery, timing and amount of capital expenditures, marketability of oil and natural gas, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially. For those reasons, estimates of the economically recoverable crude oil, NGL and natural gas reserves attributable to any particular group of properties, classification of such reserves based on risk of recovery and estimates of future net revenues associated with reserves prepared by different engineers, or by the same engineers at different times, may vary. The Company’s actual production, revenues, taxes and development and operating expenditures with respect to its reserves will vary from estimates thereof and such variations could be material.

The after-tax net present value of the Company’s oil and gas properties reflects the tax burden on the properties on a stand-alone basis and utilizes the Company’s tax pools. It does not consider the corporate tax situation, or tax planning. It does not provide an estimate of the value at the level of the Company’s, which may be significantly different. The Company’s financial statements and the management’s discussion and analysis should be consulted for information at the level of the Company.

The estimated values of future net revenue disclosed in this press release do not represent fair market value.

The reserve data provided in this news release presents only a portion of the disclosure required under National Instrument 51-101. All of the required information will be contained in the Company’s Annual Information Form for the year ended December 31, 2011, which will be filed on SEDAR (accessible at on or before March 30, 2012.

Unaudited financial information
Certain financial and operating results included in this news release such as finding, development and acquisition costs, production information and operating costs are based on unaudited estimated results. These estimated results are subject to change upon completion of the audited financial statements for the year ended December 31, 2011, and changes could be material. Tourmaline anticipates filing its audited financial statements and related management’s discussion and analysis for the year ended December 31, 2011 on SEDAR on or before March 30, 2011.

Per share reserve information is based on the total common shares outstanding at year end 2011 and 2010, respectively.

In this press release production and reserves information may be presented on a “barrel of oil equivalent” or “BOE” basis. BOEs 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. In addition, 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.

F&D and FD&A Costs
The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year.


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 volumes and estimated value of oil and gas reserves, future oil and natural gas prices, operating costs and production efficiencies as well as Tourmaline’s future drilling and completion 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.

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.


  • boe – barrel of oil equivalent
  • boepd – barrel of oil equivalent per day
  • bopd – barrel of oil, condensate or liquids per day
  • mmboe – millions of barrel of oil equivalent
  • mbbls – thousand barrels
  • mmcf – million cubic feet
  • mmcfpd – million cubic feet per day
  • mcfe – thousand cubic feet equivalent
  • mmbtu – million British thermal units



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.


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