Tourmaline Oil Corp.
TSX : TOU

Tourmaline Oil Corp.

May 17, 2011 08:31 ET

Tourmaline Oil Corp. Announces Closing of $174 Million Equity Offering Including Full Exercise of Over-Allotment Option

CALGARY, ALBERTA--(Marketwire - May 17, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Tourmaline Oil Corp. (TSX:TOU) ("Tourmaline" or the "Company") is pleased to announce that it has closed its public offering of 6,325,000 common shares at a price of $25.50 per share which includes 825,000 common shares issued pursuant to the exercise in full of the over-allotment option granted to the underwriters. Concurrent with the closing of the public offering, certain directors, officers and employees of the Company and their associates, purchased a total of 500,000 common shares at the offering price of $25.50 per share on a private placement basis. The gross proceeds from the offering and concurrent private placement totalled $174,037,500.

The public offering was underwritten by a syndicate of underwriters led by Peters & Co. Limited and including FirstEnergy Capital Corp., Scotia Capital Inc., TD Securities Inc., Cormark Securities Inc. and Stifel Nicolaus Canada Inc.

The net proceeds from the public offering and private placement will be used to temporarily reduce bank indebtedness and then applied to fund the Company's accelerated and expanded 2011 capital expenditure program, which has been increased from $350 to $450 million, and for working capital purposes.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Tourmaline Oil Corp.

Tourmaline is a Canadian intermediate crude oil and natural gas exploration and production company focused on long-term growth through an aggressive exploration, development, production and acquisition program in the Western Canadian Sedimentary Basin.

Forward-Looking Statements

This news release contains forward-looking information that involves known and unknown risks and uncertainties, most of which are beyond the control of Tourmaline, including, without limitation, those listed under "Risk Factors" and "Forward-Looking Statements" in Tourmaline's final short form prospectus, Revised Annual Information Form and in its other filings available on SEDAR at www.sedar.com. Forward-looking information in this press release includes, but is not limited to, information concerning the proposed use of proceeds from the public offering and concurrent private placement and Tourmaline's 2011 capital expenditure program. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information. Accordingly, prospective investors should not place undue reliance on these forward-looking statements. These forward-looking statements are made as of the date of this release and, other than as expressly required by applicable securities laws, Tourmaline does not assume any obligation to update or revise them to reflect new events or circumstances. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.

Contact Information

  • Tourmaline Oil Corp.
    Michael Rose
    Chairman, President and Chief Executive Officer
    (403) 266-5992
    rose@tourmalineoil.com

    Tourmaline Oil Corp.
    Brian Robinson
    Vice President, Finance and Chief Financial Officer
    (403) 767-3587
    robinson@tourmalineoil.com

    Tourmaline Oil Corp.
    Scott Kirker
    Secretary and General Counsel
    (403) 767-3593
    kirker@tourmalineoil.com

    Tourmaline Oil Corp.
    Suite 3700, 250 - 6th Avenue S.W.
    Calgary, Alberta T2P 3H7
    (403) 266-5992
    (403) 266-5952 (FAX)
    www.tourmalineoil.com