Twoco Petroleums Ltd. 2011 Update and Third Quarter Highlights

Twoco Petroleums Ltd. ("Twoco" or the "Company") (TSX VENTURE:TWO) announces an update of its 2011 activities and financial and operating results for the quarter ended September 30, 2011.

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

1.  Unaudited condensed interim financial statements as at and for the
    quarter ended September 30, 2011, together with the notes therein as
    prepared in accordance with International Financial Reporting Standards;
    and 
2.  Management's discussion and analysis of financial condition and results
    of operations as at and for the quarter ended September 30, 2011.

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

Highlights of operations for the year to date include:

--  Current production of 675 boe per day (includes approximately 200
    barrels per day of oil and natural gas liquids); 
--  In November 2011, Twoco completed the drilling of 1 gross (0.97 net)
    quad-leg horizontal oil well on the Company's Sparky heavy oil property.
    It is anticipated that this well will commence production prior to year
    end; 
--  Twoco estimates current shut-in and behind pipe production capability of
    175 boe per day. This estimate does not include the potential production
    from the 1gross (0.97 net) quad-leg horizontal oil well currently being
    completed and equipped for production; 
--  In July 2011, Twoco completed the drilling and completion of 2 gross
    (1.93 net) tri-leg horizontal oil wells on the Company's Sparky heavy
    oil property. These wells commenced production in late August 2011; 
--  On May 5, 2011, Twoco received approval from the Energy Resources
    Conservation Board ("ERCB") which amended the drilling spacing on the
    Company's Sparky heavy oil property to allow for the drilling of up to 8
    horizontal lateral legs per pool per quarter section. As a result of the
    ERCB's approval, Twoco has identified drilling locations for an
    additional 116 horizontal laterals on the Company's lands; and 
--  In April 2011, Twoco acquired the mineral rights to an additional 640
    gross acres (618 net) on the Company's Sparky heavy oil property in the
    Warspite area of Alberta.

Highlights of the Third Quarter 2011 include:

--  Average production of 613 boe per day (includes 105 barrels per day of
    oil and natural gas liquids) - a 9% decrease from the Third Quarter 2010
    - a result of shut-in volumes due to low natural gas prices, a lack of
    natural gas drilling activity and natural production declines of the
    Company's natural gas properties. In the Third Quarter 2010, Twoco had
    no oil and natural gas liquids production; 
--  Petroleum and natural gas sales revenue of $1,434,310 - a 24% increase
    from the Third Quarter 2010 - due to the 4 horizontal oil wells drilled
    on the Company's Sparky heavy oil property in the Warspite area of
    Alberta; 
--  Cash flow from operations of $248,796 versus cash flow used by
    operations of $23,961 in the Third Quarter 2010;  
--  Operating netback of $688,426 ($12.21 per boe); 
--  Net loss of $626,290 ($0.01 per share); 
--  Capital expenditures of $1,678,983; 
--  Current land position of 109,544 gross (79,670 net) acres; 
--  Operating costs of $12.28 per boe; 
--  General and administrative expenses of $2.41 per boe; 
--  In July 2011, Twoco completed the drilling and completion of two (1.93
    net) tri-leg horizontal oil wells on the Company's Sparky heavy oil
    property in the Warspite area of Alberta. These wells commenced
    production in late August 2011; and 
--  On October 3, 2011, the Company announced the issuance of 375,871 common
    shares in payment of interest accrued to September 30, 2011 on its $3.4
    million principal amount of redeemable, convertible, unsecured 8%
    debentures.

The Company has determined to strategically diversify its commodity mix by targeting development of its Sparky heavy oil property in the Warspite area of Alberta. Due to continuing depressed prices for natural gas and limited availability of capital, the Company will spend an estimated $5.8 million of its previously announced $11.8 million 2011 capital budget. The $11.8 million capital budget included the drilling of 10 gross (9.72 net) horizontal oil wells on the Company's Sparky heavy oil property in the Warspite area and, subject to favourable natural gas prices, up to 6 gross (5.79 net) additional vertical natural gas wells in the Company's Warspite, Colinton, Sunland and Plain operating areas of Alberta. After its 2011 capital budget was adopted, it was determined to allocate all available capital towards the development of the Company's Sparky heavy oil property in the Warspite area of Alberta using multi-leg horizontal oil wells. To date in 2011, the Company has drilled 2 gross (1.93 net) tri-leg horizontal oil wells and 1 gross (0.97 net) quad-leg horizontal oil well on this property.

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 71,728,095 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 the timing of production from its quad-leg horizontal well, the number of potential additional horizontal lateral drilling locations and 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Twoco Petroleums Ltd. Wayne A. Malinowski President and Chief Executive Officer [phone] [phone] (FAX)