Tourmaline Grows Year-End Reserves and Reserve Value by Over 40%; Increases 2014 Guidance

Tourmaline Grows Year-End Reserves and Reserve Value by Over 40%; Increases 
2014 Guidance 
CALGARY, ALBERTA -- (Marketwired) -- 02/19/14 -- 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 2013 independent reserve evaluation. 
Reserve Highlights 

--  Total year-end 2013 Proved plus Probable (2P) reserves of 590.1 mmboe
    after only five full years of operation. 
--  Total 2P reserve additions of 179.4 mmboe in 2013, representing 41%
    growth over 2012 total 2P reserves before 2013 production (30% per
    diluted share). 
--  Year-end 2013 2P reserve value of $6.2 billion (10% discount, before
    tax), representing 42% growth over year-end 2012 2P reserve value of $
    4.3 billion, a net present value increase in 2013 of $1.9 billion vs.
    $1.7 billion in 2012. 
--  Year-end 2013 total corporate liquids (oil and natural gas liquids)
    reserves of 85.6 mmbbls represent a 67% increase over 2012 liquids
--  2013 2P finding, development and acquisition costs (FD&A) of $11.84/boe
    including future development capital (FDC) and $7.33/boe excluding FDC. 
--  Three-year 2P FD&A of $11.65/boe (including FDC) and $7.20/boe
    (excluding FDC). 
--  2013 Recycle Ratio of 1.9 based on 2013 2P FD&A of $11.84/boe (including
    FDC) and 2014 forecast funds from operations per boe of $22.83. 
--  2013 reserve replacement ratio of 6.6 times. 
--  Peace River High Charlie Lake reserves were increased by 101% in 2013
    over 2012. 
--  Current 2P FDC represents 2.5 years of estimated future cash flow. 

Production Update 

--  Tourmaline exceeded its year-end 2013 exit production guidance of
    110,000 boepd, and expects to reach the 118,000 boepd production level
    in March 2014. 
--  Current full year 2014 average production guidance has been increased to
    120,000 boepd, representing approximately 60% growth over average 2013
    production of 74,796 boepd. 
--  Full year 2013 average production of 74,796 boepd represented a 47%
    increase over full year 2012 production of 50,804 boepd. 
--  Fourth quarter 2013 production averaged 86,089 boepd, a 50% increase
    over the fourth quarter 2012 average production rate of 57,230 boepd. 
--  Record fourth quarter liquids production of 11,700 bopd represented a
    74% increase over fourth quarter of 2012. 
--  Tourmaline expects to tie-in approximately 55 wells during the first
    quarter of 2014. 

EP Update 

--  Tourmaline is currently operating 17 drilling rigs, including 12 rigs in
    the Alberta Deep Basin complex, 2 rigs in the B.C. Montney gas
    condensate complex and 3 rigs in the Peace River High Charlie Lake oil
    complex. The Company now expects to operate 16 drilling rigs after
    break-up, up from 13 rigs in the original second half 2014 forecast. 
--  Tourmaline completed an acquisition in December adjacent to the
    Company's recent new Montney gas condensate discovery for $71.1 million.
    The acquisition added approximately 900 bopd of new production and
    approximately 55 new horizontal Montney locations. 
--  Charlie Lake reserves on the Peace River High were increased to 49.75
    mmboe, a 101% increase over 2012 reserves of 24.75 mmboe. Tourmaline
    expended $53.0 million in 2013 consolidating land on this new regional
    oil play, and in aggregate 514 sections were acquired on the trend. The
    Company believes that the regional pool could ultimately yield in excess
    of 500 mmboe, the Company controls over 75% of the prospective trend as
    currently mapped. The Company plans to complete four concurrently
    stimulated horizontal well pairs prior to break-up. 
--  The Company's Paleozoic exploratory well at Sunset B.C. has been cased
    to TD and will be completed prior to break-up. 
--  The Company's initial drilling program in the Alberta Deep Basin Montney
    trend has resulted in two vertical and one horizontal gas well in the
    Smoky-Resthaven-Kakwa areas thus far. All three wells will be completed
    and tested prior to break-up. The Company has over 100 sections of
    Montney rights in the northern portion of the Deep Basin core area. 

Financial Update 

--  The total 2013 cash consideration invested in capital expenditures, net
    of dispositions was $ 1,315.4 million including $ 43.0 million for new
    lands and $ 386.6 million for facilities and pipelines (approximately
    32.7% of the total cash capital expenditures). 
--  With completion of the equity financing during the first quarter of
    2014, Tourmaline is expanding the 2014 capital budget to $1.0 billion
    from $900 million, and increasing full year 2014 average production
    guidance to 120,000 boepd. 
--  Tourmaline is expecting 2014 funds from operations in excess of $1.0
    billion based on an AECO natural gas price of $3.86/mcf, an increase of
    approximately 90% over 2013. 
                       Summary of Oil and Gas Reserves                      
                And Net Present Values of Future Net Revenue                
              As of December 31, 2013 Forecast Prices and Costs             
RESERVES SUMMARY                                                            
                                  Light & Medium Oil        Natural Gas     
                                    Company    Company    Company    Company
                                      Gross        Net      Gross        Net
Reserves Category                   (Mbbls)    (Mbbls)     (MMcf)     (MMcf)
Proved Developed Producing            3,667      2,872    631,986    565,592
Proved Developed Non-Producing          930        791     54,385     48,959
Proved Undeveloped                    8,731      6,763    936,637    840,267
Total Proved                         13,329     10,426  1,623,008  1,454,818
Total Probable                       13,631     10,417  1,403,117  1,234,509
Total Proved Plus Probable           26,960     20,844  3,026,125  2,689,327
                       Summary of Oil and Gas Reserves                      
                And Net Present Values of Future Net Revenue                
              As of December 31, 2013 Forecast Prices and Costs             
RESERVES SUMMARY                                                            
                                  Natural Gas Liquids  Total Oil Equivalent 
                                    Company    Company    Company    Company
                                      Gross        Net      Gross        Net
Reserves Category                   (Mbbls)    (Mbbls)    (Mbbls)    (Mbbls)
Proved Developed Producing           13,191     10,429    122,189    107,566
Proved Developed Non-Produ
cing        1,119        918     11,113      9,869
Proved Undeveloped                   18,168     15,041    183,005    161,848
Total Proved                         32,478     26,387    316,308    279,283
Total Probable                       26,112     20,942    273,596    237,111
Total Proved Plus Probable           58,590     47,329    589,904    516,394

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 ($000s)   
                        Before Future Income Taxes Discounted At (%/year)   
Reserves Category             0%         5%        10%        15%        20%
Proved Developed                                                            
 Producing             2,779,057  2,240,278  1,895,605  1,657,092  1,482,098
Proved Developed Non-                                                       
 Producing               279,546    215,341    176,736    151,050    132,697
Proved Undeveloped     3,676,325  2,445,553  1,741,193  1,295,977    993,673
Total Proved           6,734,928  4,901,172  3,813,534  3,104,119  2,608,467
Total Probable         6,774,423  3,745,904  2,375,651  1,639,449  1,196,359
Total Proved Plus                                                           
 Probable             13,509,351  8,647,075  6,189,185  4,743,568  3,804,826
                                                         Unit Value Before  
                                                            Income Tax      
                                                      Discounted at 10%/year
Reserves Category                                         ($/boe)   ($/Mcfe)
Proved Developed                                                            
 Producing                                                  17.62       2.94
Proved Developed Non-                                                       
 Producing                                                  17.91       2.98
Proved Undeveloped                                          10.76       1.79
Total Proved                                                13.65       2.28
Total Probable                                              10.02       1.67
Total Proved Plus                                                           
 Probable                                                   11.99       2.00
                         Net Present Values of Future Net Revenue ($000s)   
                         After Future Income Taxes Discounted At (%/year)   
Reserves Category             0%         5%        10%        15%        20%
Proved Developed                                                            
 Producing             2,779,057  2,240,278  1,895,605  1,657,092  1,482,098
Proved Developed Non-                                                       
 Producing               279,546    215,341    176,736    151,050    132,697
Proved Undeveloped     2,846,061  1,900,303  1,353,442  1,004,305    765,184
Total Proved           5,904,664  4,355,922  3,425,783  2,812,447  2,379,979
Total Probable         5,091,389  2,780,002  1,732,747  1,171,411    835,480
Total Proved Plus                                                           
 Probable             10,996,053  7,135,924  5,158,530  3,983,858  3,215,459
               Total Future Net Revenue ($000s) (Undiscounted)              
              As of December 31, 2013 Forecast Prices and Costs             
                                                     Operating   Development
Reserves Category          Revenue     Royalties         Costs         Costs
Proved Producing         4,605,451       579,305     1,190,166             2
Proved Developed                                                            
 Nonproducing              466,683        57,716       106,143        21,356
Proved Undeveloped       7,576,785       950,509     1,197,441     1,721,691
Total Proved            12,648,919     1,587,530     2,493,750     1,743,049
Total Probable          12,436,375     1,775,109     2,391,086     1,453,369
Total Proved Plus                                                           
 Probable               25,085,294     3,362,639     4,884,837     3,196,418
               Total Future Net Revenue ($000s) (Undiscounted)              
              As of December 31, 2013 Forecast Prices and Costs             
                                      Future Net                            
                       Abandonment        Before                      Future
                               and     Deducting        Future   Net Revenue
                       Reclamation Future Income        Income  After Future
Reserves Category            Costs         Taxes         Taxes  Income Taxes
Proved Producing            56,921     2,779,057             -     2,779,057
Proved Developed                                                            
 Nonproducing                1,922       279,546             -       279,546
Proved Undeveloped          30,819     3,676,325       830,264     2,846,061
Total Proved                89,662     6,734,928       830,264     5,904,664
Total Probable              42,388     6,774,423     1,683,034     5,091,389
Total Proved Plus                                                           
 Probable                  132,049    13,509,351     2,513,299    10,996,053
                      Crude Oil and Natural Gas Liquids                     
                               Price Forecast                               
                            As of January 1, 2014                           
                                                            Alberta Natural 
                                                              Gas Liquids   
                      Bank of                                               
                        Noon      WTI                               Edmonton
                      Exchange  Cushing  Edmonton Edmonton Edmonton Pentanes
            Inflation   Rate   Oklahoma Par Price Propane   Butane    Plus  
    Year        %     $US/$Cdn  $US/bbl  $Cdn/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl
 2014 Full                                                                  
    Year       2.0     0.950     97.50    92.76    57.83    73.22    105.20 
    2015       2.0     0.950     97.50    97.37    58.42    75.95    107.11 
    2016       2.0     0.950     97.50    100.00   60.00    78.00    107.00 
    2017       2.0     0.950     97.50    100.00   60.00    78.00    107.00 
    2018       2.0     0.950     97.50    100.00   60.00    78.00    107.00 
    2019       2.0     0.950     97.50    100.00   60.00    78.00    107.00 
    2020       2.0     0.950     98.54    100.77   60.46    78.60    107.82 
    2021       2.0     0.950    100.51    102.78   61.67    80.17    109.97 
    2022       2.0     0.950    102.52    104.83   62.90    81.77    112.17 
    2023       2.0     0.950    104.57    106.93   64.16    83.40    114.41 
   2024+       2.0     0.950   +2.0%/yr  +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr
                                 Natural Gas                                
                               Price Forecast                              
                           As of January 1, 2014                           
                                  Midwest        AECO/NIT        SUMAS     
                    NYMEX        @ Chicago         Spot           Spot     
      Year        $US/MMBtu      $US/MMBtu      $Cdn/MMBtu     $US/MMBtu   
 2014 Full Year      4.25           4.35           4.03           4.20     
      2015           4.50           4.60           4.26           4.45     
      2016           4.75           4.85           4.50           4.70     
      2017           5.00           5.10           4.74           4.95     
      2018           5.25           5.35           4.97           5.20     
      2019           5.50           5.60           5.21           5.45     
      2020           5.63           5.73           5.33           5.58     
      2021           5.74           5.84           5.44           5.69     
      2022           5.86           5.96           5.55           5.81     
      2023           5.97           6.07           5.66           5.92     
     2024+         +2.0%/yr       +2.0%/yr       +2.0%/yr       +2.0%/yr   
                          FD&A          FD&A                                
                       Including     Excluding   F&D Including F&D Excluding
                       Changes in    Changes in    Changes in    Changes in 
                          FDC           FDC           FDC           FDC     
2013                     $/boe         $/boe         $/boe         $/boe    
Proved                   $17.52        $13.91        $18.24        $13.68   
Proved Plus Probable     $11.84        $7.33         $12.94        $7.38    
                          FD&A          FD&A                                
                       Including     Excluding   F&D Including F&D Excluding
                       Changes in    Changes in    Changes in    Changes in 
                          FDC           FDC           FDC           FDC     
2012                     $/boe         $/boe         $/boe         $/boe    
Proved                   $14.06        $9.11         $12.61        $8.
Proved Plus Probable     $10.35        $5.80         $8.87         $5.29    
                          FD&A          FD&A                                
2011-2013              Including     Excluding   F&D Including F&D Excluding
                       Changes in    Changes in    Changes in    Changes in 
Weighted                  FDC           FDC           FDC           FDC     
Average                  $/boe         $/boe         $/boe         $/boe    
Proved                   $16.58        $12.54        $16.07        $12.16   
Proved Plus Probable     $11.65        $7.20         $11.32        $6.86    

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 Deloitte LLP, each dated
effective December 31, 2013, 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, 20
14 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 natural gas liquids (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
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 estimates of reserves and future net revenue for individual
properties may not reflect the same confidence level as estimates of
reserves and future net revenue for all properties, due to effects of
aggregations. 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, 2013, which
will be filed on SEDAR (accessible at on or before
March 31, 2014. 
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, capital
expenditures,  and production information 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, 2013, 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,
2013 on SEDAR on or before March 31, 2014. 
Per share reserve information is based on the total common shares
outstanding, after accounting for outstanding Company options, at
year end 2013 and 2012, 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", and
"recycle ratio" 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 and defines recycle ratio as estimated 2014
funds from operations per boe divided by 2013 FD&A (including FDC)
per boe.  
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
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", "forecast", "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 estimated and future anticipated 2014 funds
from operations and funds from operations per boe, estimated volumes
and 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; interest
rates; applicable royalty rates and tax laws; future well production
rates and reserve volumes; the timing of receipt of regulatory
approvals which include tie-in approvals; the performance o
f 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; 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; 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. 
Undue reliance should not be placed on the forward-looking
information because Tourmaline can give no assurances that it 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, revenues, costs and expenses; health, safety
and environmental risks; commodity price, currency exchange rate and
interest 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
2014 funds from operations per boe, which is based on Tourmaline's
estimated 2014 funds from operations of $1 billion and average
production of 120,000 boepd. Tourmaline's estimated 2014 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) (2014), and crude oil (WTI (US) - $97.00/bbl)
(2014) and an exchange rate assumption of $0.97 (US/CAD) for 2014. To
the extent such estimate constitutes a financial outlook, it was
approved by management and the Board of Directors of Tourmaline on
February 19, 2014 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: 

bbls       barrels                                           
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                                  
mcf        thousand cubic feet                               
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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