Torquay Oil Corp. Reports 2011 Third Quarter 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") is pleased to announce that it has filed its unaudited financial
statements and related Management's Discussion and Analysis ("MD & A") for the
three and nine months ended September 30, 2011 on SEDAR. The Company's unaudited
financial statements and related MD & A are also available for review at
www.torquayoil.com or www.sedar.com.


Q3 Highlights 



--  Drilled and completed one, 100% working interest, horizontal Bakken well
    at Lake Alma, SK. The Company is currently cleaning out frac sand to
    evaluate production performance from a newly implemented frac design. 
--  Drilled and completed two, 100% working interest, horizontal Frobisher
    wells and one, 100% working interest, horizontal Bakken well at
    Viewfield, SK. 
--  Drilled and completed one, 100% working interest, vertical exploration
    well at Willmar, SK. The well is currently being evaluated and three
    horizontal follow-up wells have been licensed. 
--  Drilled and completed one, 100% working interest, horizontal Midale well
    at Midale, SK. Licensed 7 horizontal follow up wells. 
--  Drilled and completed one, 100% working interest, horizontal Alida well
    at Queensdale, SK. Initiated a battery re-build to handle new fluid.
    Licensing 4 horizontal (3.5 net) follow up wells. 
--  Shot two 3D seismic programs covering approximately 200 square km at
    Lake Alma where the Company holds over 55,000 net acres. The seismic
    programs have been processed and have identified exploration targets in
    both the Mississippian and Ordovician Formations. 
--  Q3 exit production of approximately 460 bbls/day (97% light oil and
    liquids). 
--  Achieved funds flow of $531,000. 
--  Working capital deficiency of approximately $854,000 and an existing
    undrawn line of credit of $10,000,000.



Subsequent to September 30, 2011 Torquay:



--  Drilled a second 100% W.I., horizontal Midale well at Midale, SK. 
--  Drilled one 75% W.I., horizontal Midale well at Alameda, SK. 
--  Drilling a second 100% W.I., horizontal Alida well at Queensdale, SK. 
--  Shot an 11 square km 3D seismic survey at Rosebank, SK. 
--  Current production is averaging 505 boepd (97% light oil and liquids).



Operations Update

Lake Alma, SE Saskatchewan 

In the second quarter Torquay drilled and completed a horizontal Bakken well in
the Lake Alma area. This well was completed over a 1,000m interval utilizing a
newly designed fracture stimulation program. Upon initial flow-back the well
performed as expected however, four days into the evaluation period the well
lost all inflow. This loss of fluid inflow has been interpreted to be caused by
frac sand entering the well bore. A clean out program has been designed and will
commence with crew availability.


During the second quarter Torquay drilled a vertical exploratory well at
15-9-2-17W2 into the Ratcliffe Formation to a depth of 2020m. The well was cored
and encountered 7m of oil-saturated Ratcliffe pay with porosities up to 34%. The
vertical portion of the well was abandoned and a horizontal leg was drilled
which encountered 335m of oil-saturated reservoir. During the drilling stage of
the horizontal section the well became difficult to steer and broke out of the
formation into a lower water-bearing reservoir. Significant effort was put into
saving the wellbore by cementing through a retainer. This effort proved to be
unsuccessful due to the formation's high porosity and permeability resulting in
a planned well abandonment. In September, Torquay drilled a new horizontal well
at 14-9-2-17W2. To minimize potential reservoir damage from drilling fluids, the
horizontal leg was limited to a length of 170m, of which 100m were drilled
within the pay zone where strong oil shows were encountered. The well was placed
on production and after 12 days of water production, oil cuts started to
increase. The well is currently capable of producing approximately 10 barrels of
25 degrees API oil per day with a high water cut. Torquay believes that
underbalanced drilling techniques could lead to improved productivity.


SE Saskatchewan

At Midale, SK, Torquay has successfully drilled a dual leg horizontal well which
targeted the Midale "Marly" and "Vuggy" zones. Both the Marly and the Vuggy have
proven to be productive allowing subsequent locations to target both zones.


At Alameda, SK, the Company has successfully drilled the first of its 13
development locations. Follow-up locations will be drilled throughout 2012.


During the last two quarters Torquay experienced higher than expected field
costs. In response to these higher field costs the Company reduced its 2011
capital expenditures resulting in lower production and cashflow. This decision
was made to protect Torquay's balance sheet and exit the year with a debt to
cash flow ratio of less than 1:1 . Torquay will enter 2012 with a strong balance
sheet and a robust conventional Mississippian development drilling inventory.


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.