TOURMALINE OIL CORP. ANNOUNCES Q4 AND 2010 YEAR END FINANCIAL RESULTS

24/03/2011

Tourmaline Oil Corp. achieved record growth in reserves (166%), production (417%) and funds from operations1 (523%) while delivering strong profitability in a period of difficut natural gas prices. The Company posted after-tax earnings of $14.6 million for the 2010 calendar year.

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2010 Highlights

  • Record quarterly production in Q4 2010 of 22,953 boepd – a 217% increase over Q4 2009 and a 22% increase over Q3 2010.
  • Full year 2010 average production of 17,856 boepd – a 417% increase over 2009.
  • Record quarterly funds from operations of $45.7 million or $0.34 per diluted share – an increase of 44% over Q3 2010.
  • Full year 2010 funds from operations of $135.3 million, or $1.10 per diluted share – an increase of 523% over 2009.
  • Total proved reserves growth of 167% (95% per share) and 2P reserves growth of 166% (94% per share) over 2009.
  • Strong balance sheet with no bank debt and minimal net debt2 of $49.2 million.
  • Record low operating costs of $5.51/boe in Q4 2010 – a 12% decrease from Q3 2010 and a 31% decrease from Q4 2009.
  • Strong Q4 2010 cash G&A unit costs of $0.96 – down 45% from Q4 2009.
  • Strong operating netback3 of $21.76/boe full year 2010 – a 24% increase over 2009.
  • Full year 2010 after-tax earnings of $14.6 million ($0.12/diluted share) compared to an after-tax loss of $2.1 million (($0.03)/diluted share) for 2009.
  • Tourmaline drilled 79 gross wells (57.75 net wells) in 2010 with a 100% success rate.

2011 Update

  • Current production of 24,000 boepd.
  • Approximately 60 mmcfpde tested behind pipe production scheduled to come on stream April 1st primarily from two significant facility projects, the Dawson B.C. interconnect and the Minehead Alberta gas plant.
  • Drilled 17 gross wells (14.9 net wells), with a 100% success rate thus far in 2011.

1 Funds from operations 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.

2 Net debt is defined as long-term bank debt plus working capital (adjusted for the fair value of financial instruments and future taxes) See "Non-GAAP Financial Measures" in the attached Management's Discussion and Analysis.

3 Operating netback is defined as revenue less royalties and operating expenses. See "Non-GAAP Financial Measures" in the attached Management's Discussion and Analysis.

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