TORQUAY OIL CORP PROVIDES OPERATIONS AND CORPORATE UPDATE
December 7, 2011
CALGARY, ALBERTA (Marketwire) - Torquay Oil Corp. (TSX VENTURE:TOC.A) (TSX VENTURE:TOC.B) ("Torquay"
or the "Company") is pleased to provide the following update on its
operating and corporate activities in the fourth quarter.
Operations
Torquay is currently producing approximately 520 boepd (97% light oil).
At Midale, Saskatchewan the Company has completed the tie-in of its first 100%
working interest well targeting the Midale "Marly" and
"Vuggy" zones. This well has been averaging approximately 53 (net)
bopd over the last 10 weeks. Torquay has identified an additional eight
development locations on this property.
At Alameda, Saskatchewan Torquay has tied-in the first Midale development well
to its 74.9% working interest battery. This Midale producer has averaged 17
bopd (net) over the last two weeks. An additional 13 development locations have
been identified on this property.
Torquay's first 100% working interest Queensdale, Saskatchewan well was drilled
into the Alida formation and has averaged 145 (net) boepd over the last 12
weeks. The Company is currently testing its second Alida well at Queensdale and
expects to have the well tied-in to its battery in approximately seven days.
On the exploration side, Torquay remains committed to unlocking the hydrocarbon
potential at Lake Alma, Saskatchewan where the Company holds an interest in
over 55,000 net acres of land with no expiry issues until March 2016.
Management continues to explore various alternatives which will allow the
Company to economically produce oil from the Bakken and Ratcliffe formations in
this area.
Torquay is also pleased to announce that its operating line of credit has been
increased to $12,000,000 from $10,000,000 of which approximately $8,000,000 is
expected to be drawn by year end.
Management Changes
The Company announces that effective December 5, 2011, Terry R. McCallum and J.
Brent McKercher will exchange roles, with Mr. McCallum assuming the positions
of President and Chief Executive Officer and Mr. McKercher assuming the roles
of Executive Vice President and Chief Operating Officer. As well, the Company
announces that Angus H. Jenkins, Vice President, Operations and Stephen D.
Irish, Vice President, Land have left the Company. Torquay thanks Mr. Jenkins
and Mr. Irish for their efforts over the last 18 months.
Torquay is a uniquely positioned, oil focused, junior exploration company
formed to generate and develop its own prospects, acquire oil-weighted
properties and participate with joint venture partners in oil exploration and
development in the Western Canadian Sedimentary Basin. The Company's Class A
Shares and Class B Shares trade on the TSX Venture Exchange under the symbols
TOC.A and TOC.B. The Company currently has 48,626,582 Class A Shares and
1,260,000 Class B Shares outstanding.
FORWARD LOOKING STATEMENTS:
This news release contains forward-looking statements and forward-looking
information (collectively "forward looking information") within the
meaning of applicable securities laws. Forward-looking information typically
use words such as "anticipate", "believe",
"project", "expect", "goal", "plan",
"intend" or similar words suggesting future outcomes, statements that
actions, events or conditions "may", "would",
"could" or "will" be taken or occur in the future. In
particular, forward looking information in this news release includes, but is
not limited to: statements with respect to, drilling and completion plans,
capital expenditures and the expected results from operations. The
forward-looking information is based on certain key expectations and
assumptions made by Torquay, including expectations and assumptions concerning
prevailing commodity prices, exchange rates, interest rates, applicable royalty
rates and tax laws; future well production rates and estimates of operating
costs; reserve and resource volumes; expected results of operating techniques;
the state of the economy and the exploration and production business; business
prospects and opportunities; the availability and cost of financing, labour and
services; the impact of increasing competition; ability to market oil and
natural gas successfully and the ability of the Company to access capital.
Although Torquay believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because Torquay can give no
assurance that they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve
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, results from operations will not meet with
expectations and risks associated with the oil and gas industry generally.
Additional information on the foregoing risks and other factors that could
affect Torquay' operations and financial results are included in Torquay's
annual information form and other reports on file with Canadian securities
regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The
forward-looking statements contained in this news release are made as of the
date hereof and Torquay undertakes no obligation to update publicly or revise
any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable securities
laws. The term "boe" may be misleading, particularly if used in
isolation. A boe conversion of 6 Mcf: 1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
necessarily represent a value equivalency at the wellhead.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.