Twoco Petroleums Ltd. Reserves Update

Twoco Petroleums Ltd. ("Twoco" or the "Company") (TSX VENTURE:TWO) is pleased to
announce an increase of 104% in its overall oil and natural gas reserve base
from December 31, 2010 to December 31, 2011, as evaluated by Sproule Associates
Limited ("Sproule") in accordance with National Instrument 51-101 - Standards of
Disclosure for Oil and Gas Activities ("NI 51-101"). Twoco was able to
significantly increase its overall oil and natural gas reserve base, on a year
over year basis, as a result of heavy oil reserves assigned following the
successful drilling of three (3) gross (2.9 net) multi-leg horizontal oil wells
on its heavy oil property in the Warspite area of Alberta. This increase in
reserve base is despite a decline in its natural gas reserves in 2011 due to a
lack of natural gas directed drilling, natural declines in production volumes
and reductions associated with a lower natural gas price forecast. Total Proved
plus Probable heavy oil reserves of 3,442,700 barrels represents a 718% increase
from the December 31, 2010 corporate reserve evaluation of the Company's Sparky
heavy oil property in the Warspite area. The reserves increase is the result of
the Company's successful implementation of its plan to strategically diversify
its commodity mix by targeting exploration towards oil prospects it has
identified on its existing lands. Twoco's oil reserves now represent 96% of its
overall reserves value.


A summary of the Company's reserves volumes according to reserve category as at
December 31, 2011 is as provided in the following table. Unless otherwise
stated, the reserves information included in this news release is stated on a
"company interest" basis, which represents Twoco's working interest (operated
and non-operated) share of remaining reserves before deduction of royalties and
including any royalty interests. Numbers presented in table may not add exactly
due to rounding.




                           Light and    Heavy  Solution  Natural   Total Oil
                          Medium Oil      Oil       Gas      Gas  Equivalent
Reserves Category             (Mbbl)   (Mbbl)    (MMcf)   (MMcf)      (Mboe)
----------------------------------------------------------------------------
                                                                            
Proved                                                                      
  Producing                        0    264.6       300    1,528       569.2
  Non-Producing                    0        0         0      402        67.0
  Undeveloped                      0    966.3     1,151        0     1,158.2
----------------------------------------------------------------------------
Total Proved                       0  1,230.9     1,451    1,930     1,794.4
Probable                           0  2,211.8     3,481    1,174     2,987.6
----------------------------------------------------------------------------
                                                                            
Total Proved plus Probable         0  3,442.7     4,932    3,104     4,782.0



A summary of the Company's estimated future net revenues associated with Twoco's
reserves as at December 31, 2011 based on the Sproule December 31, 2011 price
forecast is provided in the following table. It should not be assumed that the
net present values estimated by Sproule represent the fair market value of the
reserves. Numbers presented in table may not add exactly due to rounding.




                                  Before Income Taxes Discounted at (%/year)
                                      0%       5%      10%      15%      20%
Reserves Category                   (M$)     (M$)     (M$)     (M$)     (M$)
----------------------------------------------------------------------------
                                                                            
Proved                                                                      
  Producing                       17,139   14,643   12,890   11,605   10,622
  Non-Producing                      433      377      331      292      260
  Undeveloped                     39,743   30,768   24,675   20,307   17,033
----------------------------------------------------------------------------
Total Proved                      57,315   45,788   37,896   32,204   27,916
Probable                         111,780   78,663   59,138   46,486   37,676
----------------------------------------------------------------------------
                                                                            
Total Proved plus Probable       169,095  124,450   97,035   78,690   65,591



Twoco's current Net Asset Value before income tax is estimated, using a 10%
discount rate, to be $1.11/share on a basic outstanding share basis (72,167,294
common shares) and $0.82/share on a fully diluted share basis (104,843,283
common shares) which were both calculated on a Total Proved plus Probable basis.



Relevant portions of the Sproule December 31, 2011 price forecast used in the
Company's evaluation are as follows:




                WTI               Hardisty                Alberta           
                 at    Edmonton  Bow River    Hardisty       AECO     US/Cdn
            Cushing   Par Price   24.9 Deg       Heavy    Average   Exchange
           Oklahoma  40 Deg API        API  12 Deg API      Price       Rate
Year      ($US/bbl)  ($Cdn/bbl) ($Cdn/bbl)  ($Cdn/bbl) ($Cdn/mcf) ($US/$Cdn)
----------------------------------------------------------------------------
2012          98.07       96.87      82.34       74.59       3.16      1.012
2013          94.90       93.75      79.69       72.19       3.78      1.012
2014          92.00       90.89      77.25       69.98       4.13      1.012
2015          97.42       96.23      81.80       74.10       5.53      1.012
2016          99.37       98.16      83.44       75.58       5.65      1.012
2017         101.35      100.12      85.10       77.09       5.77      1.012
2018         103.38      102.12      86.81       78.64       5.89      1.012
2019         105.45      104.17      88.54       80.21       6.01      1.012
2020         107.56      106.25      90.31       81.81       6.14      1.012
2021         109.71      108.38      92.12       83.45       6.27      1.012
Thereafter +2%/year    +2%/year   +2%/year    +2%/year   +2%/year      1.012



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.


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 plan to diversify the Company's commodity mix through identified
oil prospects and future net revenues. 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 information. As such, readers are
cautioned not to place undue reliance on the forward looking information, 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.