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CALGARY, ALBERTA–(Marketwire – Feb. 14, 2012) –
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 provide the following update on its operating and corporate activities.
Torquay has drilled a third successful 100% working interest well at Queensdale, SK. The latest well, targeting the Alida zone, was placed on production on January 31, 2012 at an initial production rate of approximately 150 bbls/d. This well is expected to follow a normal decline rate for the area. Torquay is planning to shoot a 3D seismic program at Queensdale before spring breakup to delineate additional drilling prospects.
Torquay will focus its capital towards its lower cost Mississippian targets in southeast Saskatchewan throughout 2012. These conventional Mississippian wells typically offer a higher recycle rate and a lower capital cost than the deeper targets. Torquay remains committed to unlocking the value at Lake Alma. As production and cash flow increases, a portion of funds will be allocated to continue advancing the area forward. Torquay currently has several different light oil plays on its contiguous 90 section block, the majority of which has been earned until March 2016.
Torquay is currently producing approximately 605 boe/d (97% light oil).
Torquay is pleased to announce that Phil Besler has recently been hired as Vice President, Operations. Mr. Besler brings to Torquay over 34 years of drilling and completions experience in Canada and the northern US, most recently as Manager, Drilling and Completions for Legacy Oil+Gas Inc. Mr. Besler’s vast range of drilling and completion experience covers all play types which Torquay is currently pursuing, in both conventional and unconventional reservoirs.
Mr. Besler holds a Bachelor of Applied Science in Mechanical Engineering from the University of Waterloo. He is a member of APEGGA.
Torquay exited 2011 with approximately 505 boe/d of production (97% light oil). The Company had net debt of approximately $7.5 million at year end on an available operating line of credit of $11.5 million. Torquay also has access to an acquisition and development demand loan of $2.5 million which is currently undrawn.
In addition, Torquay has re-purchased an aggregate of 666,667 Class A Shares for $0.25 per share from two former officers pursuant to the terms of a voluntary share escrow agreement entered into in conjunction with the Company’s initial public offering.
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 48,109,448 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, expected decline rates, the planned 3D seismic program, future cash flows 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.
Torquay Oil Corp.
Mr. Terry McCallum
President & Chief Executive Officer
403 233 2444 ext. 32
Fax: 403 262 6991
Torquay Oil Corp.
Mr. Brent McKercher
Executive Vice President & Chief Operating Officer
403 233 2444 ext. 30
Fax: 403 262 6991
INDUSTRY: Energy and Utilities – Oil and Gas