Also included in this news release are estimates of Tourmaline's 2013 cash flow, which is based on, among other things, the various assumptions as to production levels, capital expenditures, and other assumptions disclosed in this news release and including Tourmaline's estimated 2013 average production of 80,000 boepd and 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 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 based on the capital expenditure, production and other assumptions described herein and readers are cautioned that the information may not be appropriate for other purposes.
See also "Forward-Looking Statements", "Boe Conversions" and "Non-GAAP Financial Measures" in the attached Management's Discussion and Analysis.
Certain Definitions:bbls barrelsboe barrel of oil equivalentboepd barrel of oil equivalent per daybopd barrel of oil, condensate or natural gas liquids per daygjsd gigajoules per daymmboe millions of barrels of oil equivalentmbbls thousand barrelsmmcf million cubic feetmmcfpd million cubic feet per daymmcfpde million cubic feet per day equivalentmcfe thousand cubic feet equivalentmmbtu million British thermal unitsNGL natural gas liquids
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the years ended December 31, 2012 and December 31, 2011
This management's discussion and analysis ("MD&A") should be read in conjunction with Tourmaline's consolidated financial statements and related notes for the years ended 2012 and 2011. Both the consolidated financial statements and the MD&A can be found at www.sedar.com. This MD&A is dated March 19, 2013.
The financial information contained herein has been prepared in accordance with International Financial Reporting Standards ("IFRS") and sometimes referred to in this MD&A as Generally Accepted Accounting Principles ("GAAP") as issued by the International Accounting Standards Board ("IASB"). All dollar amounts are expressed in Canadian currency, unless otherwise noted.
Certain financial measures referred to in this MD&A are not prescribed by IFRS. See "Non-GAAP Financial Measures" for information regarding the following non-GAAP financial measures used in this MD&A: "cash flow", "operating netback", "working capital (adjusted for the fair value of financial instruments)" and "net debt".
Additional information relating to Tourmaline can be found at www.sedar.com.
Forward-Looking Statements - Certain information regarding Tourmaline set forth in this document, including management's assessment of the Company's future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Such statements represent Tourmaline's internal projections, estimates or beliefs concerning, among other things, an outlook on the estimated amounts and timing of capital investment, anticipated future debt, expenses, production, cash flow and revenues or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements are only predictions and actual events or results may differ materially. Although Tourmaline believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Tourmaline's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Tourmaline.