Tourmaline Grows Year-End Reserves and Reserve Value by Over 60%

Tourmaline Grows Year-End Reserves and Reserve Value by Over 60% 
CALGARY, ALBERTA -- (Marketwire) -- 02/12/13 -- Tourmaline Oil Corp.
(TSX:TOU) ("Tourmaline" or the "Company") is pleased to provide the
following operations and financial update and highlights from its
year-end 2012 independent reserve evaluation. 
Reserve Highlights 

--  Total year-end 2012 Proved plus Probable (2P) reserves of 438.0 mmboe
    after only four full years of operation. 
--  Total 2P reserve additions of 186.6 mmboe in 2012, representing 69%
    growth over 2011 total 2P reserves before 2012 production (54% per
    share). Similarly, proved reserves grew by 80% in 2012 over 2011 (63%
    per share). 
--  Year-end 2012 2P reserve value of $4.3 billion (10% discount, before
    tax), representing 61% growth over year-end 2011 2P reserve value,
    despite a difficult gas price environment during the year and lower
    overall natural gas prices utilized in the 2012 independent report. (Net
    Present Value increase in 2012 of $1.65 billion.) 
--  2012 2P finding, development and acquisition costs (FD&A) of $10.35/boe
    including future development capital (FDC) and $5.80/boe excluding FDC,
    down from $13.34/boe in 2011 (including changes in FDC). 2012 total
    proved FD&A costs were $14.06/boe (including FDC), down from $19.71/boe
    in 2011. 
--  Year-end 2012 proved developed producing (PDP) reserves of 92.0 mmboe
    and 11.1 mmboe proved developed non-producing (PDNP) reserves. The
    majority of the non-producing reserves will come on-stream during Q2
    2013 via the ongoing new facility projects at Sunrise-Dawson, B.C., and
    Spirit River, Alberta. First quarter 2013 drilling and tie-ins are
    expected to add a further 13.0 mmboe of PDP reserves during the quarter.
--  2012 Recycle Ratio of 2.25 based on 2012 2P finding, development and
    acquisition costs (FD&A) of $10.35 per boe (including FDC) and 2013
    forecast funds from operations per boe of $23.26. 

Production Update 

--  Tourmaline exceeded its year-end 2012 exit production guidance of 70,000
    boepd, and expects to reach the 75,000 boepd production level, on a
    sustained basis, in March 2013. 
--  Current full year 2013 average production guidance is 75,000 boepd,
nting approximately 50% growth over average 2012 production of
    50,803 boepd. 
--  The Company will bring approximately 13,000 boepd of currently shut-in
    production on-stream in mid-May via a new gas plant in Dawson/Doe, B.C.
    and an expanded facility at Spirit River. 
--  The Company also has an additional 21 wells to tie-in and bring on-
    stream during the first quarter, throughout the operated EP portfolio. 

EP Update 

--  Tourmaline is currently operating 11 drilling rigs, with eight rigs in
    the Deep Basin, two rigs at Spirit River, and one rig in NEBC. A total
    of 28-30 new wells are planned for the first quarter of 2013. 
--  Seven of the eight Deep Basin rigs are drilling horizontal wells and
    2013 will be the first year in which the Company will realize the
    benefit of Deep Basin horizontal drilling for the full year. 
--  The most recent Wilrich horizontal at Horse in the Deep Basin tested at
    a final test rate of 26.1 mmcfpd @ 18.7 MPa at the conclusion of a
    three-day test period. 
--  The most recent Spirit River pool expansion horizontal has averaged 836
    bopd and 2.7 mmcfpd of gas during the first seven days of production. 

Financial Update 

--  Fourth quarter 2012 production averaged 57,229 boepd, a 51% increase
    over the fourth quarter 2011 average production rate of 37,912 boepd. 
--  Full year 2012 average production of 50,803 boepd represents a 64%
    increase over the 2011 full year average production rate of 31,007
--  Funds from operations were $93.8 million for the fourth quarter of 2012,
    a 28% increase over the fourth quarter of 2011. 
--  Operating expenses for the fourth quarter of 2012 continued to be strong
    at $4.10/boe resulting in full-year 2012 operating expenses of
    $4.43/boe, a 21% decrease compared to 2011 operating expenses of
--  Fourth quarter capital spending on E&P activities was $214.4 million and
    was $606.7 million including corporate and property acquisitions. 
--  The Company estimates net debt as at December 31, 2012 to be
    approximately $464.3 million. 
--  The sale of the Company's Elmworth assets for a net $77.5 million
    remains on schedule to close in March of 2013. The Company has
    reclassified approximately $33.0 million out of PP&E into current assets
    as an asset held for sale in its December 31, 2012 financial statements.
                       Summary of Oil and Gas Reserves                      
                And Net Present Values of Future Net Revenue                
                           As of December 31, 2012                          
FORECAST PRICES AND COSTS                                                   
                              Light and Medium Oil         Natural Gas      
                               Company                 Company              
Reserves Category               Gross    Company Net    Gross    Company Net
                               (Mbbls)     (Mbbls)     (MMcf)      (MMcf)   
Proved Developed Producing         2,471       1,883     493,761     441,894
Proved Developed Non-                284         230      59,097      53,364
Proved Undeveloped                 5,460       3,959     764,973     692,431
Total Proved Reserves              8,215       6,072   1,317,831   1,187,689
Total Probable Reserves            5,438       3,645   1,001,968     897,661
Total Proved Plus Probable                                                  
 Reserves                         13,653       9,717   2,319,800   2,085,351
                       Summary of Oil and Gas Reserves                      
                And Net Present Values of Future Net Revenue                
                           As of December 31, 2012                          
FORECAST PRICES AND COSTS                                                   
                               Natural Gas Liquids    Total Oil Equivalent  
                               Company                 Company              
Reserves Category               Gross    Company Net    Gross    Company Net
                               (Mbbls)     (Mbbls)     (Mbbls)     (Mbbls)  
Proved Developed Producing         7,069       5,275      91,834      80,807
Proved Developed Non-                942         758      11,075       9,882
Proved Undeveloped                13,213      10,839     146,168     130,204
Total Proved Reserves             21,224      16,873     249,077     220,893
Total Probable Reserves           16,359      12,674     188,791     165,930
Total Proved Plus Probable                                                  
 Reserves                         37,583      29,547     437,869     386,823

Company Gross reserves are defined as the working interest share of
reserves prior to the deduction of interest owned by others
(burdens). Royalty interest reserves are not included in Company
Gross reserves. Company Net reserves are defined as the working, net
carried, and royalty interest reserves after deduction of all
applicable burdens.  

                         Net Present Values of Future Net Revenue ($000s)   
                        Before Future Income Taxes Discounted At (%/year)   
Reserves Category         0%         5%        10%        15%        20%    
Proved Developed       2,157,237  1,645,088  1,345,345  1,149,531  1,011,424
Proved Developed Non-    221,357    159,087    123,079     99,927     83,875
Proved Undeveloped     2,932,739  1,859,824  1,274,990    916,871    679,486
Total Proved Reserves  5,311,333  3,663,999  2,743,414  2,166,329  1,774,785
Total Probable         4,821,401  2,554,200  1,603,176  1,108,636    814,048
Total Proved Plus                                                           
 Probable Reserves    10,132,734  6,218,200  4,346,591  3,274,965  2,588,833
                                                          Unit Value Before 
                                                             Income Tax     
                                                            Discounted at   
Reserves Category                                          ($/boe)  ($/Mcfe)
Proved Developed                                                            
 Producing                                                   16.65      2.77
Proved Developed Non-                                                       
 Producing                                                   12.45      2.08
Proved Undeveloped                                            9.79      1.63
Total Proved Reserves                                        12.42      2.07
Total Probable                                                              
 Reserves                                                     9.66      1.61
Total Proved Plus                                                           
 Probable Reserves                                           11.24      1.87
                         Net Present Values of Future Net Revenue ($000s)   
                         After Future Income Taxes Discounted at (%/year)   
Reserves Category         0%         5%        10%        15%        20%    
Proved Developed       2,157,237  1,645,088  1,345,345  1,149,531  1,011,424
Proved Developed Non-    221,357    159,087    123,079     99,927     83,875
Proved Undeveloped     2,261,576  1,454,876  1,006,092    726,165    537,705
Total Proved Reserves  4,640,170  3,259,052  2,474,516  1,975,623  1,633,004
Total Probable         3,626,397  1,900,330  1,174,496    797,654    574,341
Total Proved Plus                                                           
 Probable Reserves     8,266,568  5,159,382  3,649,012  2,773,277  2,207,346
                      Total Future Net Revenue ($000s)                      
                           As of December 31, 2012                          
                          Forecast Prices and Costs                         
                                                   Operating    Development 
Reserves Category         Revenue     Royalties      Costs         Costs    
Proved Developed                                                            
 Producing                 3,373,504      419,421      746,938         7,240
Total Proved Reserves      9,672,694    1,186,484    1,705,904     1,401,952
Total Proved Plus                                                           
 Probable Reserves        18,031,808    2,290,274    3,126,844     2,388,333
                      Total Future Net Revenue ($000s)                      
                           As of December 31, 2012                          
                          Forecast Prices and Costs                         
                                       Future Net                           
                         Abandonment     Before                  Future Net 
                             and       Deducting               Revenue After
                         Reclamation     Future       Future       Future   
Reserves Category           Costs     Income Taxes Income Taxes Income Taxes
Proved Developed                                                            
 Producing                     42,669    2,157,237            -    2,157,237
Total Proved Reserves          67,021    5,311,333      671,163    4,640,170
Total Proved Plus                                                           
 Probable Reserves             93,624   10,132,734    1,866,166    8,266,568
                       Crude Oil & Natural Gas Liquids                      
                               Price Forecast                               
                            As of January 1, 2013                           
                                Bank of Canada                 Edmonton Par 
                                  Avg. Noon     WTI Cushing      Price 40   
Year                  Inflation Exchange Rate     Oklahoma    degrees API 
                              %       $US/$Cdn        $US/bbl       $Cdn/bbl
2013 Full Year             2.00          1.000          90.00          85.00
2014                       2.00          1.000          92.50          91.50
2015                       2.00          1.000          95.00          94.00
2016                       2.00          1.000          97.50          96.50
2017                       2.00          1.000          97.50          96.50
2018                       2.00          1.000          97.50          96.50
2019                       2.00          1.000          98.54          97.54
2020                       2.00          1.000         100.51          99.51
2021                       2.00          1.000         102.52         101.52
2022                       2.00          1.000         104.57         103.57
2023+                      2.00          1.000       +2.0%/yr       +2.0%/yr
                       Crude Oil & Natural Gas Liquids                      
                               Price Forecast                               
                            As of January 1, 2013                           
                                    Alberta Natural Gas Liquids             
                                                           Edmonton Pentanes
Year                    Edmonton Propane  Edmonton Butane        Plus       
                                 $Cdn/bbl         $Cdn/bbl          $Cdn/bbl
2013 Full Year                      34.06            65.45             96.63
2014                                45.75            70.46             97.91
2015                                56.40            72.38             97.76
2016                                57.90            74.31            100.36
2017                                57.90            74.31            100.36
2018                                57.90            74.31            100.36
2019                                58.52            75.11            101.44
2020                                59.71            76.62            103.49
2021                                60.91            78.17            105.58
2022                                62.14            79.75            107.71
2023+                            +2.0%/yr         +2.0%/yr          +2.0%/yr
                                 Natural Gas                                
                               Price Forecast                               
                            As of January 1, 2013                           
Year               Nymex     Midwest @Chicago      Spot         Sumas Spot  
                 $US/MMbtu       $US/MMbtu   $Cdn/MMbtu         $US/MMbtu   
2013 Full Year           3.75            3.85            3.38           3.60
2014                     4.25            4.35            3.83           4.10
2015                     4.75            4.85            4.28           4.60
2016                     5.25            5.35            4.72           5.10
2017                     5.50            5.60            4.95           5.35
2018                     5.80            5.90            5.22           5.65
2019                     5.91            6.01            5.32           5.76
2020                     6.03            6.13            5.43           5.88
2021                     6.15            6.25            5.54           6.00
2022                     6.27            6.37            5.64           6.12
2023+                +2.0%/yr        +2.0%/yr        +2.0%/yr       +2.0%/yr
                 FD&A Including FD&A Excluding  F&D Including  F&D Excluding
                 Changes in FDC Changes in FDC Changes in FDC Changes in FDC
2012                  $/boe          $/boe          $/boe          $/boe    
Proved               $14.06          $9.11         $12.61          $8.21    
Proved Plus                                                                 
 Probable            $10.35          $5.80          $8.87          $5.29    
                 FD&A Including FD&A Excluding  F&D Including  F&D Excluding
                 Changes in FDC Changes in FDC Changes in FDC Changes in FDC
2011                  $/boe          $/boe          $/boe          $/boe    
Proved               $19.71         $16.67         $18.42         $16.69    
Proved Plus                                                                 
 Probable            $13.34          $9.12         $12.01          $8.22    
2010-2012        FD&A Including FD&A Excluding  F&D Including  F&D Excluding
 Weighted        Changes in FDC Changes in FDC Changes in FDC Changes in FDC
 Average              $/boe          $/boe          $/boe          $/boe    
Proved               $18.41         $12.82         $17.03         $11.91    
Proved Plus                                                                 
 Probable            $13.50          $7.74         $12.30          $7.27    

Reader Advisories 
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, 2012, 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, 2013 price forecast used in the reserve evaluations is
available on its 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.   
All evaluations and reviews of future net revenue are stated prior to
any provisions for interest costs or general and administrative costs
and after the deduction of estimated future capital expenditures for
wells to which reserves have been assigned. 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 after-tax value of
the Company, 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. There is no assurance
that the forecast prices and cost assumptions used in the reserve
evaluations will be attained and variances could be material.  
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, 2012, which
will be filed on SEDAR (accessible at on or before
March 31, 2013. 
Unaudited Financial Information  
Certain financial and operating results included in this news release
such as finding, development and acquisition costs, finding and 
development costs, recycle ratio, funds from operations, net debt,
capital expenditures, assets held for sale, 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, 2012,
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, 2012 on SEDAR on or before
March 31, 2013.  
Per share reserve information is based on the total common shares
outstanding, after accounting for outstanding Company options, at
year end 2012 and 2011, respectively. 
Non-IFRS Financial Measures  
This press release includes references to financial measures commonly
used in the oil and gas industry such as "funds from operations",
"operating netback", "recycle ratio" 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 and cash flow from operating activities, these non-IFRS
financial measures are useful supplemental measures in assessing
Tourmaline's ability to generate the cash necessary to repay debt or
fund future growth through capital investment. Readers are cautioned,
however, that these measures should not be construed as an
alternative to net income or cash flow from operating activities
determined in accordance with IFRS as an indication of Tourmaline's
performance. Tourmaline's method of calculating these measures may
differ from other companies and accordingly, they may not be
comparable to measures used by other companies. For these purposes,
Tourmaline defines funds from operations as cash provided by
operations before changes in non-cash operating working capital,
defines operating netback as revenue (excluding processing income)
less royalties, transportation costs and operating expenses, defines
recycle ratio as estimated 2013 funds from operations per boe divided
by 2012 FD&A (including FDC) per boe, and defines net debt as
long-term bank debt plus working capital (adjusted for the fair value
of financial instruments). 
BOE Equivalency  
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  
In addition to F&D, the Company uses FD&A as a measure of the
efficiency of its overall capital program including the effect of
acquisitions and dispositions.  
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
Production Tests  
Production tests are not necessarily indicative of long-term
performance or ultimate recovery. 
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 and production volume estimates, 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.  
Also included in this press release are estimates of Tourmaline's
2013 funds from operations per boe, which is based on Tourmaline's
estimated 2013 funds from operations and average production of $636.7
million and 75,000 boepd, respectively. Tourmaline's estimated 2013
funds from operations is based on the various assumptions as to
production levels, capital expenditures, and other assumptions
disclosed in this press release and including commodity price
assumptions for natural gas (AECO - $3.86/mcf) (2013), and crude oil
(WTI (US) - $95.00/bbl) (2013) and an exchange rate assumption of
$1.00 (US/CAD) for 2013. To the extent such estimate constitutes a
financial outlook, it was approved by management and the Board of
Directors of Tourmaline on February 12, 2013 and is included to
provide readers with an understanding of Tourmaline's anticipated
funds from operations based on the capital expenditure 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. 
Certain Definitions:  

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               

About Tourmaline Oil Corp.  
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
(403) 266-5992
(403) 266-5952 (FAX)
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