Tourmaline Announces a Major Expansion to the Spirit River/Peace River High Charlie Lake Play

Tourmaline Announces a Major Expansion to the Spirit River/Peace River High 
Charlie Lake Play 
CALGARY, ALBERTA -- (Marketwired) -- 07/04/13 -- Tourmaline Oil Corp.
(TSX:TOU) ("Tourmaline" or the "Company") is pleased to announce that
the Spirit River Charlie Lake oil and gas pool has evolved into a
major new hybrid resource play with significant reserve and
production upside. This major expansion of the Triassic Charlie Lake
play combined with the successful consolidation of the associated
prospective land opportunity have created a third major core
operating area for the Company, complementing the NEBC Montney
complex and the Alberta Deep Basin. 
Through ongoing Charlie Lake pool expansion efforts at Spirit River
over the past 18 months and 2013 regional Charlie Lake exploration
successes, the Company has delineated a regional oil and gas
accumulation with both structural and stratigraphic trapping
elements. Tourmaline estimates that over 500 mmboe of light oil and
natural gas along the defined fairway are potentially recoverable(1).
The Company has drilled 43 successful Charlie Lake horizontal oil
wells and no dry holes since horizontal exploitation commenced in
late 2011. The most recent exploration well, approximately 40 miles
from the main Spirit River pool, tested oil and gas at a stabilized
rate of 700 boepd at the end of a 3 day production test. The most
recent pool expansion well, 10 miles south of the main pool, tested
at a stabilized rate of 650 boepd, during the past week. The
14-8-77-7W6 well, one of the first quarter 2013 pool expansion wells,
has produced 105 mboe since March 17 (55.5 mboe oil, average 47%
water cut, 297 mmcf gas) and is currently producing at 316 bbls/d oil
and 2.5 mmcfpd gas. The Company has several additional regional
Charlie Lake exploration wells planned over the next 12 months to
both assess and expand the 75 mile long exploration fairway. A major
land acquisition program has been underway for over 18 months on the
greater Peace River High with approximately 410 sections of new land,
prospective for the Triassic Charlie Lake, acquired by the Company.
This region of the Peace River High is characterized by stacked,
multiple objectives throughout the Mesozoic section. As the Company
proceeds with the systematic regional Charlie Lake drilling program,
numerous, less expansive uphole pool discoveries are anticipated. 
Tourmaline has steadily improved its horizontal drilling and
completion techniques for these complex Charlie Lake reservoirs. The
improving per well deliverabilities and steadily decreasing capital
costs have been an essential component of the overall play evolution.
Drill, complete and stimulate costs have been reduced to
approximately $3.6 million per horizontal, with average per well 2P
reserve recoveries of 300-350 mstboe in the main pool. Tourmaline
plans to run three rigs over the next 12 to 18 months pursuing these
Charlie Lake horizontal targets, resulting in 70-75 new horizontals
drilled by late 2014. The Company expects to attain the 10,000 boepd
production level at Spirit River (5,000 bpd oil, 30 mmcfpd natural
gas) by the fourth quarter of this year and believes that continued
regional play success could allow the Company to more than double
these production levels over the next two years. Tourmaline is
proceeding with plans to build a new gas plant, capable of processing
60 mmcfpd, in the greater Spirit River area adding to existing
Tourmaline owned oil and gas infrastructure. The Company is also
developing plans to capture the significant, regional, natural gas
liquids target, as the average liquid content in the associated gas
stream is approximately 102 bbls/mmcf. Including the main Spirit
River complex and the associated regional exploration lands, the
Company now has a potential future drilling inventory of 750-1,000
(1) Tourmaline estimate of the potential of the formation on a
regional basis based upon geological interpretation and exploration
experience in the overall Charlie Lake Play. 
Production/EP Update 
Tourmaline remains on track to achieve the 80,000 boepd average
production level for 2013, the original full year estimate of 75,000
boepd was increased in February of this year. Phase 1 of the ongoing
Spirit River expansion was completed during the second half of June,
adding approximately 2,000 boepd. Phase 2 of the Spirit River
expansion will bring an additional 4,000 boepd on-stream in October,
bringing total production for the complex to approximately 10,000
boepd. Start-up of the NEBC Doe plant has been delayed until July 15,
and as a result did not provide any incremental production volumes in
June. This has reduced second quarter volumes by approximately 2,000
boepd utilizing the originally planned June 15 start-up date. This
delay coupled with ongoing, unplanned downtime in several areas in
both May and June, has reduced estimated average second quarter
production volumes to between 70,500 and 71,000 boepd. The Company
reached the 75,000 boepd production milestone in April; and daily
production capability remained well in excess of that level
throughout the quarter. Unscheduled production down-time averaged
approximately 4,100 boepd during May and June, approximately triple
the normal daily average. This downtime included several unscheduled
facility disruptions at Spectra West Doe B.C. and Spectra Gordondale,
at the Berland plant in Smoky-Horse, at the third party Musreau
facility, and at a third party facility in Wild River that the
Company was utilizing to process excess gas volumes. The Tourmaline
Doe B.C. plant start-up in July however, will bring total daily
production volumes to in excess of 85,000 boepd. 
A third quarter average production level of between 85,000 and 87,000
boepd is currently forecast, and a fourth quarter 2013 production
average in excess of 90,000 boepd is now expected. All 13 rigs are
now currently active; 6-7 frac spreads will be employed during the
second half of the year for completions operations. 
The increased second half 2013 drilling program is expected to
provide additional incremental volumes late in 2013 that are not
included in the current production outlook. The Company will assess
the impact of the additional EP activities on full year 2013 guidance
later in the year, when tie-in timing is finalized. The Company
currently expects 2014 production to average between 108,000 and
115,000 boepd. 
Financial Update 
Tourmaline successfully expanded its credit facility to $750 million
with the Company's banking syndicate in May, providing significant
additional financial flexibility. Cash flow(2) for 2013 is expected
to increase to $642.8 million, an improvement of over 100% compared
to 2012. The Company will continue to maintain a debt to cash flow
ratio of 1.0 times or less, forecasting net debt(3) at the end of
2013 of approximately $300 million after the effect of the first
quarter 2013 equity financing and the recent property disposition.
The 2014 EP Capital Program of $800 million has been approved by the
Tourmaline Board. 
The Company has made modest additions to its natural gas hedge
position with 103 mmcfpd fixed at approximately $3.79 Canadian/mcf
for 2013, and 43 mmcfpd fixed at approximately $3.91 Canadian/mcf for
2014. The Company also has fixed price oil hedges for 2013 on
approximately 1,400 bbls/d, at $100 Canadian/bbl, with approximately
1,100 bbls/d, hedged using various instruments at an average of
$90.00 Canadian/bbl for 2014. 
(2) See "Non-GAAP Financial Measures" 
(3) See "Non-GAAP Financial Measures" 
Forward-Looking Information 
This press release contains forward-looking information within the
meaning of applicable securities laws. The use of any of the words
"forecast", "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 plans and other aspects of its anticipated
future operations, management focus, objectives, strategies,
financial, operating and production results and business
opportunities, including anticipated petroleum and natural gas
production for various periods, cash flows, net debt levels, debt to
cash flow ratios, capital efficiency and capital spending, projected
operating and drilling costs, the timing for facility expansions and
facility start-up dates, as well as Tourmaline's future drilling
prospects and plans, 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; interest rates; future well production rates and
reserve volumes; operating costs the timing of receipt of regulatory
approvals; the performance of existing wells; the success obtained in
drilling new wells; anticipated timing and results of capital
expenditures; the sufficiency of budgeted capital expenditures in
carrying out planned activities; the timing, location and extent of
future drilling operations; the successful completion of acquisitions
and dispositions; the availability and cost of labour and services;
the state of the economy and the exploration and production business;
the availability and cost of financing, labor and services; and
ability to market oil and natural gas successfully.  
Statements relating to "reserves" are also deemed to be forward
looking statements, as they involve the implied assessment, based on
certain estimates and assumptions, that the reserves described exist
in the quantities predicted or estimated and that the reserves can be
profitably produced in the future. 
Although Tourmaline believes that the expectations and assumptions on
which such forward-looking information is based are reasonable, 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; interest rate
fluctuations; marketing and transportation; loss of markets;
environmental risks; competition; incorrect assessment of the value
of acquisitions; failure to complete or realize the anticipated
benefits of acquisitions or dispositions; 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 annual cash flow and net debt at the end of 2013, which are
based on the various assumptions as to production levels, including
estimated 2013 average production of 80,000 boepd, capital
expenditures, and other assumptions disclosed in this press release
and including commodity price assumptions for natural gas (AECO -
$3.66 /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
any such estimate constitutes a financial outlook, it was approved by
management and the Board of Directors of Tourmaline on March 19, 2013
and is included to provide readers with an understanding of
Tourmaline's anticipated cash flow and net debt based on the capital
expenditure and other assumptions described herein and readers are
cautioned that the information may not be appropriate for other
Additional information on these and other factors that could affect
Tourmaline, or its operations or financial results, are included in
the Company's most recently filed Management's Discussion and
Analysis (See "Forward-Looking Statements" therein), Annual
Information Form (See "Risk Factors" and "Forward-Looking Statements"
therein) and other reports 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 Reader Advisories 
Boe Conversions 
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. 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. 
Production Tests 
Production tests are not necessarily indicative of long-term
performance or ultimate recovery. 
Non-GAAP Financial Measures 
This press 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 ("GAAP"). Management
believes that in addition to net income and cash flow from operating
activities, the aforementioned non-GAAP 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
GAAP 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 "cash flow" as cash
flow from operating activities before changes in non-cash operating
working capital and defines "net debt" as long-term bank debt plus
working capital (adjusted for the fair value of financial

Certain Definitions:                                                        
bbls                barrels                                                 
boe                 barrel of oil equivalent                                
boepd               barrel of oil equivalent per day                        
bopd                barrel of oil, condensate or liquids per day            
gjsd                gigajoules per day                                      
mmboe               millions of barrels of oil equivalent                   
mbbls               thousand barrels                                        
mmcf                million cubic feet                                      
mcf                 thousand cubic feet                                     
mmcfpd              million cubic feet per day                              
mmcfpde             million cubic feet per day equivalent                   
mcfe                thousand cubic feet equivalent                          
mmbtu               million British thermal units                           
mstboe              thousand stock tank barrels of oil equivalent           

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.
(403) 266-5992
(403) 266-5952 (FAX)
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