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CALGARY, ALBERTA -- (Marketwire) -- 03/19/13 -- Tourmaline Oil Corp. (TSX: TOU) ("Tourmaline" or the "Company") achieved exceptional growth in reserves (69%), production (64%) and cash flow(1) (16%) in 2012 while delivering strong profitability in a year of significantly lower natural gas prices. The Company posted strong after-tax earnings of $15.5 million for the 2012 fiscal year.
Highlights
-- 2012 average production of 50,804 boepd represented a 64% increase over the 2011 average production of 31,007 boepd.-- Total proved plus probable (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).-- After-tax earnings of $15.5 million in 2012 despite an average realized natural gas price in 2012 of $2.67/mcf.-- Record annual cash flow of $280.3 million representing 16% growth over 2011 cash flow of $241.4 million.-- 2012 operating expenses of $4.43/boe - a 21% decrease over 2011 operating expenses of $5.58/boe. Fourth quarter 2012 operating expenses were $4.10/boe.-- Completed a $233.2 million equity financing on March 12, 2013.-- Completed the sale of the non-producing Elmworth property on March 12, 2013, for net proceeds of $77.5 million.-- 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 reserve 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.-- Total year-end 2012 2P reserves of 438 mmboe after only four full years of operation.-- Drilled 76 gross wells in 2012, with a 100% success rate.(1) Cash flow is defined as cash provided by operations before changes in non-cash operating working capital. See "Non-GAAP Financial Measures" in the attached Management's Discussion and Analysis.
Production Update
Full year 2013 average production guidance was increased from 75,000 boepd to 80,000 boepd, on February 20, 2013. This will represent 57% growth over 2012 average production of 50,804 boepd. The Company expects to reach the 80,000 boepd level in early June when the new Doe gas plant is currently scheduled for start-up.
The new gas processing facility at Doe BC will bring approximately 10,000 - 11,000 boepd of shut-in Triassic Montney production on-stream. The gas handling facility expansion at Spirit River Alberta will bring approximately 2,000 boepd of currently shut-in Charlie Lake light oil and gas production on-stream in June. An additional 2,500-3,000 boepd of shut-in Charlie Lake production will come on-stream in late September through ongoing complementary pipeline/debottlenecking projects.
