Torquay Oil Corp. Reports 2011 Results

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") announces that it has filed its audited financial statements and
related management's discussion and analysis for the year ended December 31,
2011 on SEDAR at www.sedar.com and on the Company's website at
www.torquayoil.com. The Company will also file its annual information form for
the year ended December 31, 2011, which includes its statement of reserves data
and other oil and gas information in accordance with National Instrument 51-101
- Standards of Disclosure for Oil and Gas Activities on SEDAR.


Torquay Oil Corp. exited 2011 with production of 505 boe/day and averaged 361
boe/day throughout the year, weighted 98% to light oil and NGL's. Torquay
continues to focus on light oil in SE Saskatchewan where it received an average
netback of $54.96 per boe throughout the year. The Company exited the 2011 year
with $8.1MM drawn on its $11.5MM credit facility. 


While Torquay benefits from its oil weighting and high netbacks, 2011 proved to
be a challenging year. At Lake Alma, Saskatchewan, the Company holds over 57,000
net acres, the majority of which does not expire until March, 2016. The Company
acquired two 100% W.I. 3D seismic programs in 2011 covering approximately 200
square km. Torquay has discovered and produced oil in five separate horizontal
wells covering a wide geographic area. Finding the right completion design to
unlock the Bakken economics continues to be the Company's focus and Torquay
remains committed to pursuing the Bakken potential at Lake Alma. In the past
year alone, proven new completion techniques resulting in economic wells have
been implemented to the south and east of Torquay's land block as competitors
continue to improve the productivity of the Bakken.


At Viewfield, Saskatchewan, the Company drilled six (6.0 net) wells, five
targeting the Frobisher and one targeting the Bakken. The Company also completed
a battery expansion at Viewfield to handle fluid volumes from the new wells
providing handling capacity of 5,000 bbls of fluid per day.


Torquay purchased a private company's interest at Queensdale, Saskatchewan in
2011. The Company drilled two (2.0 net) wells on the property in 2011and has
since drilled a 3rd location in 2012. Queensdale is now the Company's largest
producing property.


The Company drilled one (0.75 net) Midale well at the Torquay operated Alameda
Unit. Torquay is currently looking at completing future wells by hydraulically
fracturing the Midale Formation to improve both the productivity and ultimate
recovery of the wells. 


At Midale, Saskatchewan the Company drilled two (2.0 net) horizontal wells into
the Midale Formation. The Company is also evaluating hydraulically fracturing
future wells similar to Torquay's Alameda property.


The Company underwent significant management changes in 2011 and the first
quarter of 2012. Effective December 2011, Terry McCallum was appointed President
and CEO and Brent McKercher was appointed Executive Vice President and COO, and
effective January 2012, Phil Besler was appointed Vice President, Operations.


Selected 2011 Financial Information as follows;



----------------------------------------------------------------------------
                                               Three months            Year 
                                                      ended           ended 
($000's except per share                       December 31,    December 31, 
 amounts)                                              2011            2011 
                                                                            
Petroleum & natural gas revenue            $          3,657   $      10,809 
Funds flow from operations                            1,596           4,126 
Funds flow per share (basic and                                             
 diluted)                                              0.03            0.10 
Net loss                                            (11,036)        (17,921)
Net loss per share (basic and                                               
 diluted)                                             (0.23)          (0.42)
Capital expenditures (net)                            8,186          45,841 
Weighted common shares outstanding (1)               48,776          42,880 
----------------------------------------------------------------------------
                                                                            
            Production                                                      
              Crude oil (bbls/d)                        412             300 
                  NGL's (bbls/d)                         30              35 
             Natural gas (mcf/d)                        205             154 
----------------------------------------------------------------------------
                     Total boe/d                        476             361 
----------------------------------------------------------------------------
                                                                            
               Pricing                                                      
               Crude oil ($/bbl)           $          91.48   $       91.26 
                   NGL's ($/bbl)                      47.96           45.75 
             Natural gas ($/mcf)                       3.18            3.97 
----------------------------------------------------------------------------
                 Average ($/boe)           $          83.56   $       82.04 
----------------------------------------------------------------------------
                                                                            
 Netbacks ($/boe)                                                           
     Petroleum & Natural gas                                                
      revenue                              $          83.56   $       82.04 
     Royalties                                       (12.60)         (10.92)
     Operating costs                                 (14.30)         (16.16)
----------------------------------------------------------------------------
     Field netback                         $          56.66   $       54.96 
                                                                            
----------------------------------------------------------------------------



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 48,209,448 Class A Shares and 1,260,000 Class B Shares
outstanding.


READER ADVISORY: 

This news release contains the term "funds flow from operations" which is
defined as cash provided by (used in) operating activities before the change in
non-cash working capital related to operating activities and decommissioning
expenditures incurred and "netbacks" which is defined as oil and gas revenue
less royalties and operating costs. Funds flow from operations and netbacks do
not have any standardized meaning prescribed by International Financial
Reporting Standards ("IFRS") and therefore may not be comparable with the
calculation of similar measures for other entities. Management uses funds flow
from operations and netbacks to analyze the operating performance of the
business. Funds flow from operations as presented is not intended to represent
cash flow from operations or operating profits for the period nor should it be
viewed as an alternative to cash provided by operating activities, net earnings
or other measures of financial performance calculated in accordance with IFRS. 


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: evaluation of hydraulically fracturing techniques, completion of
future wells by hydraulically fracturing 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. The financial information presented herein
has been prepared on the basis of IFRS. All references to dollar amounts are in
Canadian dollars.