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Tourmaline Sees Lower than Expected Q2 Output; Plans Completion Ramp-Up in 2H18

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Tourmaline Oil reported its Q2 2018 results.

Highlights:

- Q2 2018 average production of 260,930 boepd was below the originally-anticipated 265,000-275,000 boepd range.

• Q2 2018 production was impacted by a sales compressor failure at the Musreau plant in the Alberta Deep Basin and by multiple unplanned outages on the Enbridge system in the NEBC and Peace River High complexes. The Musreau facility issue affected production for seven weeks and reduced quarterly production by approximately 3,000 boepd; the replacement compressor returned production to normal levels by June 14. Several unplanned production interruptions on the Enbridge system were experienced in June at Gordondale, McMahon and Fourth Creek, reducing quarterly production by approximately 4,250 boepd. A forest fire during the last week of June in the Banshee-Anderson area of the Deep Basin resulted in well and plant shut-ins, further reducing June production volumes.

• The Company expects full-year average production of 267,500-275,000 boepd; the slightly lower range reflects the impact of unplanned outages in Q2 and Q3.

• During the second half of July, NGL production was reduced by approximately 4,200 bpd due to an unplanned outage at the third-party Saturn 1 Deep Cut facility in the Wild River area of the Deep Basin.  The facility was repaired and back to full production by July 28.

• A slightly higher 2018 exit production range of 290,000-297,500 boepd is now expected, including liquids production of approximately 62,500 bpd. The Company plans to exit 2018 at or above anticipated full-year 2019 production levels of 291,000 boepd.

2H 2018 Drilling Program - Completions Ramping Up

• Tourmaline is currently operating 14 drilling rigs and will drill approximately 140 wells (gross) in the second half of 2018. The Company currently has 45 drilled but uncompleted wells in inventory – completion operations will ramp up in the second half of August. Tourmaline plans to bring approximately 152 new wells on-stream across all three core complexes by year-end 2018.