Twoco Petroleums Ltd. 2011 Highlights and 2012 Update

Twoco Petroleums Ltd. ("Twoco" or the "Company") (TSX VENTURE:TWO) is pleased to
announce financial and operating results for 2011 and an update of its 2012
activities. 


Twoco has filed the following documents on the System for Electronic Document
Analysis and Retrieval (SEDAR):




1.  Annual information form for the year ended December 31, 2011, which
    includes the disclosure and reports relating to reserves data and other
    oil and gas information required pursuant to National Instrument 51-101
    - Standards of Disclosure for Oil and Gas Activities of the Canadian
    Securities Administrators ("NI 51-101"); 
2.  Audited financial statements as at and for the year ended December 31,
    2011, together with the notes thereto and the report of the auditors
    thereon; and 
3.  Management's discussion and analysis of financial condition and results
    of operations for the year ended December 31, 2011. 



Copies of these documents may be obtained via SEDAR at www.sedar.com. 

Highlights of 2011 include:



--  An increase of 104% in volume and an increase of 201% in value of its
    oil and natural gas reserves from December 31, 2010 to December 31,
    2011, as evaluated by Sproule Associates Limited ("Sproule") in
    accordance with NI 51-101; 
--  Total Reserve Values, using Sproule's December 31, 2011 forecast pricing
    and calculated using a 10% discount rate, of $37.896 million on a Total
    Proved basis and $97.035 million on a Total Proved Plus Probable basis; 
--  Total Proved plus Probable heavy oil reserves of 3,442,700 barrels
    representing a 718% increase from the December 31, 2010 corporate
    reserve evaluation of the Company's Sparky heavy oil property in the
    Warspite area of Alberta; 
--  Heavy Oil Reserve Values, using Sproule's December 31, 2011 forecast
    pricing and calculated using a 10% discount rate, of $35.836 million on
    a Total Proved basis and $93.195 million on a Total Proved Plus Probable
    basis; 
--  Petroleum and natural gas sales revenue of $6,057,941 - a 9% increase
    from the year ended December 31, 2010 - due to the 5 horizontal oil
    wells drilled on the Company's Sparky heavy oil property in the Warspite
    area of Alberta; 
--  Cash flow from operations of $439,641 in 2011 versus cash flow used by
    operations of ($338,441) in the year ended December 31, 2010; 
--  Average production of 603 boe per day (includes 99 barrels per day of
    oil and natural gas liquids) - a 16% decrease from the year ended
    December 31, 2010 - a result of shut-in volumes due to low natural gas
    prices, a lack of natural gas drilling activity and production declines
    of the Company's natural gas properties. In the Fourth Quarter 2011,
    Twoco averaged 162 barrels per day of oil and natural gas liquids
    production; 
--  Participation in the drilling of 4 gross (3.86 net) wells which resulted
    in 2 gross (1.93 net) tri-leg horizontal oil wells, 1 gross (0.97 net)
    quad-leg horizontal oil well and 1 gross (0.97 net) vertical well
    targeting natural gas that was dry and abandoned. The Company's tri-leg
    horizontal oil wells commenced production in August, 2011 and the
    Company's quad-leg horizontal oil well commenced production in December
    2011; 
--  Net Loss of $21,166,920 ($0.31 per share) - a result primarily from
    higher depletion, depreciation and impairment expenses in the amount of
    $17,868,528. The impairment for accounting purposes relates to the
    decline in the value of natural gas properties. The decline cannot be
    offset against the significant increase in the value of oil properties
    even though the value of proved plus probable oil and natural gas
    reserves increased by 201% from December 31, 2010 to December 31, 2011; 
--  Capital expenditures of $6,060,212; 
--  Current land position of 103,622 gross (75,034 net) acres; 
--  Operating costs of $12.54 per boe; 
--  Operating netback of $12.14 per boe; 
--  Operating netback of $57.25 per barrel in respect of the Company's
    production of Sparky heavy oil; 
--  General and administrative expenses of $3.99 per boe; and 
--  In 2011, the Company issued a total of 1,093,595 common shares in
    payment of interest accrued to December 31, 2011 on its $3.4 million
    principal amount of redeemable, convertible, unsecured 8% debentures. 



Highlights of Twoco's operations for the 2012 year to date include:



--  Current production of 575 boe per day (includes approximately 200
    barrels per day of oil and natural gas liquids);  
--  Twoco estimates current shut-in and behind pipe production capability of
    300 boe per day; and 
--  On April 30, 2012, the Company and Alberta Treasury Branches entered
    into an indicative term sheet extending the next review date of the
    Company's credit facilities to July 31, 2012.  



Twoco is an oil and gas company engaged in the exploration for, and the
acquisition, development and production of, oil and natural gas reserves
primarily in the Province of Alberta. Twoco has 72,491,140 common shares issued
and outstanding as at today's date. 


In this news release the calculation of barrels of oil equivalent (boe) is
calculated at a conversion rate of six thousand cubic feet (Mcf) of natural gas
for one barrel (Bbl) of oil based on an energy equivalency conversion method.
Boes may be misleading particularly if used in isolation. A boe conversion ratio
of 6 Mcf: 1Bbl is based on an energy equivalency conversion method primarily
applicable to the burner tip and does not represent a value equivalency at the
wellhead.


Forward-Looking Statements: 

Certain information set forth in this news release contains forward-looking
statements or information ("forward-looking statements"), including statements
regarding behind pipe production capability. By their nature, forward-looking
statements are subject to numerous risks and uncertainties, some of which are
beyond Twoco's control, including the impact of general economic conditions,
industry conditions, volatility of commodity prices, currency fluctuations,
imprecision of reserve estimates, environmental risks, operational risks in
exploration and development, competition from other industry participants, the
lack of availability of qualified personnel or management, stock market
volatility and the ability to access sufficient capital from internal and
external sources. Although Twoco believes that the expectations in our
forward-looking statements are reasonable, our forward-looking statements have
been based on factors and assumptions concerning future events which may prove
to be inaccurate. Those factors and assumptions are based upon currently
available information. Such statements are subject to known and unknown risks,
uncertainties and other factors that could influence actual results or events
and cause actual results or events to differ materially from those stated,
anticipated or implied in the forward-looking statements. As such, readers are
cautioned not to place undue reliance on the forward-looking statements, as no
assurance can be provided as to future results, levels of activity or
achievements. The risks, uncertainties, material assumptions and other factors
that could affect actual results are discussed in our Annual Information Form
and other documents available at www.sedar.com. Furthermore, the forward-looking
statements contained in this document are made as of the date of this document
and, except as required by applicable law, Twoco does not undertake any
obligation to publicly update or to revise any of the included forward-looking
statements, whether as a result of new information, future events or otherwise.
The forward-looking statements contained in this document are expressly
qualified by this cautionary statement. This news release shall not constitute
an offer to sell or the solicitation of any offer to buy securities in any
jurisdiction.