Tourmaline Oil Corp.
TSX : TOU

Tourmaline Oil Corp.

August 30, 2012 08:37 ET

Tourmaline Oil Corp. Announces Closing of $117 Million Equity Offering

CALGARY, ALBERTA--(Marketwire - Aug. 30, 2012) -

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 4,000,000 common shares at a price of $29.00 per common share. Concurrent with the closing of the public offering, certain directors, officers and employees of the Company and their associates, purchased a total of 39,000 common shares at the offering price of $29.00 per common share on a private placement basis. The gross proceeds from the offering and concurrent private placement totalled approximately $117 million.

The public offering was underwritten by a syndicate of underwriters led by Peters & Co. Limited and included Scotia Capital Inc., FirstEnergy Capital Corp., National Bank Financial Inc., Stifel Nicolaus Canada Inc., CIBC World Markets Inc., TD Securities Inc., and Cormark Securities Inc.

The net proceeds of the financings will be used to temporarily reduce indebtedness, which will then be available to be redrawn and applied to partially fund the previously disclosed expansion of the 2012 capital program from $375 million to $410 million, its 2013 capital expenditure program and for general corporate purposes. In the first quarter of 2013, it is anticipated that approximately $30 million will be used for a 50 MMCF/D expansion of the processing capacity in the Company owned and operated Sunrise-Dawson complex with the construction of a second gas plant. The Company currently has approximately 60 MMCF/D of productive capability either shut in or awaiting tie in.

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 Information

This news release contains forward-looking information that involves known and unknown risks and uncertainties, most of which are beyond Tourmaline's control, including, without limitation, those listed under "Risk Factors" and "Forward-Looking Statements" in Tourmaline's 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 anticipated use of proceeds of the financings as well as the planned expansion of the processing capacity in the Company owned and operated Sunrise-Dawson complex with the construction of a second gas plant. 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, undue reliance should not be placed on this forward-looking information. This forward-looking information is made as of the date of this release and, other than as required by applicable securities laws, Tourmaline does not assume any obligation to update or revise it to reflect new events or circumstances. The forward looking information contained in this 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