Tourmaline Exceeds 2014 Production Exit Guidance and Closes Peace River High Joint Venture Deal

CALGARY, AB–(Marketwired – January 05, 2015) – Tourmaline Oil Corp. (TSX: TOU) (“Tourmaline” or the “Company”) is pleased to provide an update on year end 2014;

• The Company achieved a 2014 production exit of 151,000 boepd and remains on track to meet or exceed 2015 average production guidance of 164,500 boepd (approximately 40% higher than 2014 average production on the current, reduced 2015 capital program of $1.4 billion). Tourmaline expects to tie-in and start up approximately 90 new wells during the first quarter of 2015, 38 of which were already drilled by year end 2014. As announced in December 2014, Tourmaline will reduce the 2015 drilling program from 20 rigs to 16, and can reduce further without impacting the 2015 production outlook.
• Tourmaline closed the previously announced Peace River High joint venture arrangement with Canadian Non-Operated Resources LP on December 23, 2014. The CAD$500 million received will ensure that the Company maintains a net debt to cash flow ratio of approximately 1.0 times during 2015. Tourmaline retains a 75% working interest and operates the joint venture.
• With the completion of the significant 2H 2014 facility expansion program, the Company’s combined operated facility capacity from all 3 core EP complexes was 170,000 boepd at year end 2014. The facility related capital budget in 2015 will be significantly reduced from 2014 (approximately 40% less in 2015) and can be reduced further contingent upon the 2H 2015 commodity price outlook.
• The Company has 327.6 mmcfpd of natural gas production hedged at a price of $4.38/mcf during the first quarter of 2015.

[expand title=”Advisories & Contact”]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, 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.

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 2015 capital spending as well as estimates on net debt to cash flow ratios for 2015, which are based on the various assumptions as to production levels, including estimated average production of 164,500 boepd for 2015, capital expenditures, and other assumptions disclosed in this press release and including commodity price assumptions for natural gas (AECO — $4.25/mcf for 2015), and crude oil (WTI (US) — $75.00/bbl for 2015) and an exchange rate assumption of (US/CAD) $0.91 for 2014 and $0.88 for 2015. To the extent any such estimate constitutes a financial outlook, it was approved by management and the Board of Directors of Tourmaline on December 14, 2014 and is included to provide readers with an understanding of Tourmaline’s anticipated cash flows 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, 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 (www.sedar.com) or Tourmaline’s website (www.tourmalineoil.com).

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 6:1 conversion basis may be misleading as an indication of value.

Non-GAAP Financial Measures

This press release includes references to financial measures commonly used in the oil and gas industry, “cash flow” and “net debt” which do not have standardized meanings prescribed by International Financial Reporting Standards (“GAAP”). Accordingly, the Company’s use of these terms may not be comparable to similarly defined measures presented by other companies. Management uses the terms “cash flow”, and “net debt”, for its own performance measures and to provide shareholders and potential investors with a measurement of the Company’s efficiency and its ability to generate the cash necessary to fund a portion of its future growth expenditures or to repay debt. Investors are cautioned that the non-GAAP measures should not be construed as an alternative to net income and debt determined in accordance with GAAP as an indication of the Company’s performance. See “Non-GAAP Financial Measures” in the November 5, 2014 Management’s Discussion and Analysis for the definition and description of these terms.

Certain Definitions

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.

For further information, please contact:

Tourmaline Oil Corp.
Michael Rose
Chairman, President and Chief Executive Officer
(403) 266-5992

OR

Tourmaline Oil Corp.
Brian Robinson
Vice President, Finance and Chief Financial Officer
(403) 767-3587;
robinson@tourmalineoil.com

OR

Tourmaline Oil Corp.
Scott Kirker
Secretary and General Counsel
(403) 767-3593;
kirker@tourmalineoil.com

OR

Tourmaline Oil Corp.
Suite 3700, 250 — 6th Avenue S.W.
Calgary, Alberta  T2P 3H7
Phone: (403) 266-5992
Facsimile: (403) 266-5952
Website: www.tourmalineoil.com