Tourmaline Oil Corp. reports very strong total reserve growth, liquids reserve growth and a continued reserve value increase in the current depressed natural gas price environment. The Company executed on the 2017-2018 plan to concentrate almost entirely on internal EP growth and has produced the best reserve metrics in the Company’s 10 year history over the past two years.

RESERVE HIGHLIGHTS

• Proved plus probable reserves (“2P”) increased by 241.2 mmboe to 2.46 billion boe during 2018, an 11% increase over 2017 year-end reserves of 2.22 billion boe and a 15% increase of 337.9 mmboe which includes annual production of 96.7 million boe. Total proved (“TP”) reserves increased 23% to 1.21 billion boe and proved, developed producing (“PDP”) reserves of 473.3 mmboe increased 31% over year-end 2017 when including 2018 annual production.After ten years of operation, Tourmaline has 2P natural gas reserves of 11.7 tcf and 2P liquid reserves of 505.2 mmboe of oil, condensate and liquids (December 31, 2018). The Company has the largest publiclyreported, independently-assessed, 2P natural gas reserves in Canada.2P reserve net present value (“NPV”) of $58.57 per diluted share, TP reserve NPV of $33.67 per diluted share and a PDP reserve NPV of $17.36 per diluted share at December 31, 2018. The Company was able to continue to grow reserve NPV per diluted share in 2018 despite significantly lower natural gas pricing used in the independent reserve report.
• 2P finding, development and acquisition costs (“FD&A”) in 2018 were $5.15/boe including changes in future development capital (“FDC”) ($3.59/boe excluding change in FDC) based on total capital expenditures of $1.214 billion; TP FD&A in 2018 were $6.79/boe including change in FDC ($4.91/boe excluding change in FDC). 2018 PDP FD&A were $9.11/boe.
• The 2018 2P recycle ratio was 2.6 based on 2P FD&A of $5.15/boe (including FDC), and 2018 estimated cash flow of $13.47/boe. The 2018 TP recycle ratio was 2.0 and the 2018 PDP recycle ratio was 1.5.
• 2P reserve replacement ratio of 3.5 times based on 2P reserve additions of 337.9 mmboe before 2018 production of 96.7 mmboe.

PRODUCTION HIGHLIGHTS

• Full-year 2018 average production of 265,044 boepd was 9% higher than 2017 average production of 242,325 boepd and within the guidance range.
• Q4 2018 liquids production (oil, condensate, NGL) of 51,938 bpd was 14% higher than Q4 2017 average liquids production. Tourmaline is forecasting 2019 average liquids production of 66,000 bpd, representing 39% year-over-year growth, forecast to be amongst the highest liquids growth rates in the industry this year.
• In 2018, Tourmaline’s EP capital program of $1.23 billion generated approximately 110 mboepd of new production resulting in a 2018 capital efficiency of $11,200 boepd.
• Q4 2018 average production of 276,568 boepd was 9% higher than Q3 2018 average production of 254,185 boepd.
• Tourmaline has been producing at the 1H 2019 guidance range of 290,000 – 300,000 boepd during the first quarter; the Company will bring on the 50,000 boepd Gundy deep cut facility during June.