Torquay Oil Corp. Reports 2012 Second 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
"Corporation") is pleased to announce that it has filed its unaudited financial
statements and related Management's Discussion and Analysis ("MD&A") as at and
for the six months ended June 30, 2012. The Corporation's unaudited financial
statements and related MD&A are available for review at www.torquayoil.com or
www.sedar.com.


Highlights and Corporate Outlook

Year to date revenue was $6,359,895, which is a 25% increase over the same
period in 2011. Production volume was up 31% year to date compared to the same
period last year. The Corporation's quarterly production was also up 9% compared
to Q2 2011. Average Q2 2012 production was reduced by approximately 90 boe/d due
to an extended spring break-up at Queensdale.


Year to date netbacks have averaged $48.51 per boe for the first six months of
2012. Average year to date prices have declined $4.60 per boe as compared to the
first six months of 2011. Prices remained volatile throughout the second quarter
and have recovered substantially in the third quarter of 2012. One-time charges
resulting in a net decrease in netbacks of $4.79 per boe year to date are not
expected to reduce netbacks in future quarters.


Capital activity was reduced during the second quarter due to seasonal break-up
and to maintain the balance sheet during this period of volatile commodity
pricing. 


Industry activity is moving towards applying the same fracture stimulation
techniques that have been successfully used in the Bakken on other formations
such as the Midale. The Midale Formation is well suited to this type of
stimulation as it typically has low permeability and is sandwiched between two
evaporite beds which help contain the fracture stimulation. Torquay has been
monitoring successful stimulations in the Midale and is well positioned to apply
this step change in technology on its lands at Alameda and Midale.


At Lake Alma, Saskatchewan, the Corporation holds over 57,000 net acres, the
majority of which do not expire until March, 2016. Industry activity in North
Dakota has become increasingly focused on the Three Forks Formation. The Three
Forks is pervasive underneath Torquay's land block and is now productive within
35 km of its land position. The Corporation continues to evaluate the Bakken
Formation along with the emerging Three Forks play.


Replacement of the damaged tank farm at the Viewfield battery is well under way.
The Corporation expects production to resume by mid September 2012. The
financial impact to Torquay is limited to insurance deductibles of approximately
$136,000 which includes a $25,000 deductible on equipment replacement and
fifteen days of net production.


Selected Financial and Operational Information 

Selected financial and operational information is outlined below and should be
read in conjunction with Torquay's unaudited condensed interim financial
statements as at and for the three and six months ended June 30, 2012.




----------------------------------------------------------------------------
                                          Three months                      
                                              ended        Six months ended 
                                             June 30            June 30     
($000's except per share amounts)          2012     2011      2012     2011 
----------------------------------------------------------------------------
Petroleum & natural gas revenue        $  2,326  $ 2,656  $  6,360  $ 5,105 
Funds flow from operations                  566      998     2,824    1,998 
Funds flow per share (basic and                                             
 diluted)                                  0.01     0.03      0.06     0.05 
Net loss                                 (1,373)    (328)   (2,613)  (3,290)
Net loss per share (basic and diluted)    (0.03)   (0.01)    (0.05)   (0.09)
Capital expenditures (net)                1,051    3,177     4,514   19,913 
Weighted common shares outstanding (1)   48,373   38,491    48,270   36,992 
----------------------------------------------------------------------------
                                                                            
Production                                                                  
  Crude oil (bbls/d)                        312      275       402      281 
  NGL's (bbls/d)                             25       33        27       41 
  Natural gas (mcf/d)                       125      129       186      168 
----------------------------------------------------------------------------
  Total BOE/d                               359      330       460      350 
----------------------------------------------------------------------------
                                                                            
Pricing                                                                     
  Crude oil ($/bbl)                    $  77.29  $ 98.19  $  83.26  $ 91.13 
  NGL's ($/bbl)                           47.71    48.63     44.57    45.21 
  Natural gas ($/mcf)                      1.67     4.35      1.51     4.38 
----------------------------------------------------------------------------
  Average ($/BOE)                      $  71.29  $ 88.55  $  75.99  $ 80.59 
----------------------------------------------------------------------------
                                                                            
Field netback ($/BOE)                                                       
  Petroleum & natural gas revenue      $  71.29  $ 88.55  $  75.99  $ 80.59 
  Royalties                              (13.99)  (11.61)   (12.38)  (10.38)
  Operating costs                        (24.40)  (17.78)   (15.09)  (14.95)
----------------------------------------------------------------------------
  Netback                              $  32.90  $ 59.16  $  48.51  $ 55.26 
                                                                            
----------------------------------------------------------------------------
                                                                            
(1) Basic per share amounts are calculated by dividing net income or loss by
    the weighted average number of Class A 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.                                             



Torquay is a uniquely positioned, oil focused, junior exploration Corporation
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 Corporation's Class A
Shares and Class B Shares trade on the TSX Venture Exchange under the symbols
TOC.A and TOC.B. The Corporation currently has 48,659,448 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.
The financial information presented herein has been prepared on the basis of
IFRS. All references to dollar amounts are in Canadian dollars. 


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: the potential effects of fracture stimulation techniques; and
the expected results from the Corporation's 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;
one-time charges; 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 Corporation 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.