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Torquay Oil Corp. Reports 2011 First Quarter Results

CALGARY, ALBERTA–(Marketwire – June 29, 2011) –

THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES, TO UNITED STATES NEWS WIRE SERVICES OR TO UNITED STATES PERSONS.

Torquay Oil Corp. (TSX VENTURE:TOC.A) (TSX VENTURE:TOC.B) (“Torquay” or the “Company”) is pleased to announce that it has filed its unaudited financial statements and related Management’s Discussion and Analysis (“MD & A”) for the three months ended March 31, 2011. The Company’s unaudited financial statements and related MD & A are available for review at www.torquayoil.com or www.sedar.com.

Q1 Financial Highlights

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($000's except per share amounts)                                 March 31, 
                                                                       2011 
Petroleum & natural gas revenue                              $        2,448 
Funds flow from operations                                            1,000 
  Per share (basic and diluted)                                        0.03 
Net loss                                                             (2,962)
  Per share (basic and diluted)                                       (0.08)
Capital expenditures                                                 16,682 
Working capital deficiency                                           (2,006)
Weighted common shares outstanding (1)                               35,461 
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Production                                                                  
  Crude oil (bbls/d)                                                    287 
  NGL's (bbls/d)                                                         49 
  Natural gas (mcf/d)                                                   207 
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  Total boe/d                                                           370 
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Pricing                                                                     
  Crude oil ($/bbl)                                                   84.28 
  NGL's ($/bbl)                                                       42.88 
  Natural gas ($/mcf)                                                  4.39 
----------------------------------------------------------------------------
  Average ($/boe)                                                     73.44 
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Netbacks ($/boe)                                                            
  Petroleum & Natural gas revenue                                     73.44 
  Royalties                                                           (9.28)
  Operating costs                                                    (12.40)
----------------------------------------------------------------------------
  Field netback                                                       51.76 

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1.  Basic per share amounts are calculated by dividing net income or loss by
    the weighted average number of Class A Shares outstanding during the
    period. In addition, for the purpose of calculating diluted per share
    amounts, The effect of warrants, options and convertible Class B Shares
    are anti-dilutive and consequently are not included in the determination
    of diluted shares outstanding.

Q1 Operational Highlights

--  Drilled four (4.0 net) wells resulting in two (2.0 net) oil wells 
--  Earned an additional seven and one quarter sections (7.25) 
--  Acquired approximately 50 boepd in southeast Saskatchewan establishing a
    new core area 
--  Acquired a partner's working interest in the Lake Alma area increasing
    land holdings to 90 gross (86 net) sections 
--  Increased conventional, Mississippian, light oil drilling locations to
    over 40 
--  Began expansion project on the Viewfield battery in preparation for
    increased fluid throughput 
--  Set and approved the 2011 budget at $50,000,000 
--  Produced an average of 370 boepd (97% light oil and liquids) 
--  Achieved funds flow from operations of $1.0 million ($0.03 per share)
 
Subsequent to March 31, 2011 Torquay:

--  Closed a $13,300,000 bought deal financing 
--  Completed drilling its first Ratcliffe well at Lake Alma, SK 
--  Current production is averaging 350 boepd (97% light oil and liquids)

Operations Update

Lake Alma, SE Saskatchewan

Torquay has recently finished drilling its first horizontal Ratcliffe well in the Lake Alma area. The well was drilled to 2,515m measured depth and is currently being completed.

The Company is currently drilling a horizontal Bakken development well at Lake Alma.

Permitting on the Company’s 3D seismic survey has been completed with data acquisition expected to commence during the first week of August.

Permitting of a second 3D seismic survey has begun with data acquisition expected to commence mid to late August.

Viewfield, SE Saskatchewan

The battery expansion at Viewfield was completed in April. This expansion will allow Torquay to continue developing the Frobisher oil pool at Viewfield and is expected to help lower operating costs.

Torquay anticipates spudding a Frobisher well within the next week and expects to drill up to seven additional locations by year end.

SE Saskatchewan

Along with many other operators in SE Saskatchewan Torquay is experiencing the effects of unprecedented flooding. Roads are impassable, leases are covered with water and production is shut in. As such the Company’s drilling schedule has been delayed at all of its operating areas. Torquay considers itself fortunate; having been able to begin drilling operations at Lake Alma and are confident we can complete our 2011 drilling program. However, many residents in SE Saskatchewan have not been so fortunate. They have lost homes, crops and jobs; so our thoughts go out to these people.

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 44,053,132 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, completion, seismic and facility 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; 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.

CONTACT INFORMATION

Torquay Oil Corp.
Mr. Brent McKercher
President & Chief Executive Officer
403 233 2444 ext. 30
Fax: 403 262 6991
brent@torquayoil.com

or

Torquay Oil Corp.
Mr. Darwin Little
Vice President, Finance & Chief Financial Officer
403 233 2444 ext. 31
Fax: 403 262 6991
darwin@torquayoil.com

INDUSTRY: Energy and Utilities – Oil and Gas

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