Tourmaline Oil - Corp Overview May 2014

Tourmaline Oil Corp.

Corporate Presentation

May 2014

Current Status

Production Overview 2014 average production forecast of 120,000

Target Q2 115,000 – 120,000 boepd production range achieved 2H April

Additional 16,000 boepd tied in awaiting facility expansions

Additional 10,000 boepd tested, behind pipe volumes, awaiting tie-in

Three Major Core Areas Alberta Deep Basin: 2,150 gross sections (largest Deep Basin land position)

NEBC Montney Gas/Condensate: 5th

/6th

largest Montney producer in W. Canada

Peace River High Charlie Lake: Large, regional, light oil and gas resource play

Drilling Results 18 rig program in 2H 2014

Drilling Inventory 3,200(+) vertical locations with downspacing at two wells per section and

approximately 4,000 horizontal locations in the Deep Basin: 800 locations in

NEBC, 1,200 locations in Peace River High Charlie Lake core area

Financial Position Net Debt - $818.6 million (Mar 31, 2014)

Equity financing completed Feb 2014 for net proceeds of $219.2 million

Current Shares OS (million) 199.9

Apr 2014

2

EP Performance 2009-2013

0

0.5

1

1.5

2

2.5

3

3.5

2009 2010 2011 2012 2013

Reserves p

er S

hare (B

OEs)

Reserves Growth Per Share*

0

20

40

60

80

100

120

140

160

2009 2010 2011 2012 2013Productio

n p

er Thousand Shares

(B

OEs)

Production Growth Per Share*

$3.00

$4.00

$5.00

$6.00

$7.00

2009 2010 2011 2012 2013

2009-2013 Op Costs/BOE

0.00

1.00

2.00

3.00

4.00

5.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2009 2010 2011 2012 2013

Natural G

as P

ric

e $

/m

cf

NP

V 1

0%

$ B

illion

Reserves NPV

Reserve NPV-2P AECO Ave Nat Gas Price

* debt adjusted

Mar 2014

3

Deep Basin Overview

Tourmaline has assembled the largest land position (1.1 million acres), delineated the

largest drilling inventory (7,200 locs) and has become the second largest producer

(current 75,000 boepd) in the Deep Basin within the first 5 years of operation.

The Company utilizes 3D seismic to select almost every horizontal and vertical location

and believes this technical approach provides a competitive advantage.

Tourmaline staff have been at the leading edge of new horizontal and vertical completion

technologies and the Company is consistently drilling the highest deliverability/reserve

recovery Wilrich and Notikewin horizontals.

The Company has constructed a large, low cost, gas and liquid processing infrastructure

with current capacity of 400 mmcfpd, growing to 475 mmcfpd by exit 2014. Tourmaline

will be the largest Deep Basin producer by 2H 2014.

2H 2015 gas production levels of 550 mmcfpd and cond/ngl production levels of 20,000

bpd are currently anticipated (110,000 boepd).

Apr 2014

4

Note: All land and well information is provided on a gross interest basis

Apr 2014

Alberta Deep BasinDEEP BASIN - Deep Basin Overall Area

METERS

0 2,500 5,000 7,500

PETRA 22/08/2013 9:34:58 AM

T. 57

T. 59

Tourmaline

Wild R. 14-20

Hinton

Ansell

Edson

Marsh

Harley

Pine Ck.

Wroe

Minehead

Horse

CeciliaWild River

Sundance

Obed

T. 59

R. 26

Tourmaline

Hinton 6-32Tourmaline

Minehead 5-12

Tourmaline

Berland R.

14-15

Musreau

/Kakwa

Lovett

R. 9 R. 7 R. 5 R. 3 R. 1, W6M R. 24 R. 22 R. 20

T. 61

T. 63

R. 24 R. 22 R. 20 R. 18 R. 16

T. 43

R. 14

AlbertaNE

BC

T. 51

Tourmaline Gas Plant

Tourmaline 3D

Tourmaline Lands

Possible Facility Locations

2013 Significant New Discoveries

Current Production 75,000 boepd

Current Reserves 304.9 mmboe (Jan 1, 2014)

Tourmaline Land Base 2,150 sections

Drilling Inventory 3,200 locations (vertical)

(2 wells per section only)

4,000(+) locations (hz)

2014 Drilling Program Approx. 8-10 verticals,

70-75 horizontals

Q1 2014 Update

30 hz wells drilled and completed

(Wilrich, Notikewin, Falher).

27 tied in by late April. 16 of 17 wells

with 30 days of production exceed

Company template/guidance of 5.0

mmcfpd 30 day IP.

The actual 30 day IP average for these

17 wells is 10.4 mmcfpd.

T. 53

T. 55

T. 57

T. 51

T. 49

T. 47

T. 45

Cardium

Viking

Mannville/Notikewin

Falher

Cadomin

Dunvegan

Nikinassin

Bluesky

Gething

Wilrich

Gething

5

T. 59

Tourmaline

Wild R. 14-20

Hinton

Ansell

Edson

Marsh

Harley

Pine Ck.

Wroe

Minehead

Horse

Cecilia

Wild River

Sundance

Obed

T. 59

R. 26

Tourmaline

Hinton 6-32

Tourmaline

Berland R.

14-15

Musreau/

Kakwa

Lovett

R. 9 R. 7 R. 5 R. 3 R. 1, W6M R. 24 R. 22 R. 20


T. 61

T. 63

T. 53

T. 55

T. 57

T. 51

T. 49

T. 47

T. 45

R. 24 R. 22 R. 20 R. 18 R. 16


Tourmaline 3D

Tourmaline Lands


2012-2013 Horizontal Wells

Kakwa 1-2

25.8 mm/d @ 14.1MPaKakwa 13-20

21.0 mm/d @ 12.8MPa

Wild R 2-9

21.9 mm/d @ 6.7MPa

Ansell 16-3

10.1 mm/d @ 5.9MPa

Marsh 1-10

7.7 mm/d @ 37.7MPa

Falher A

Gething

Cadomin

Falher B

Viking

Notikewin

Falher C

Cardium

Viking

Notikewin

Falher

Cadomin

Dunvegan

Nikinassin

Bluesky

Gething

Wilrich

Gething

Horizontals Drilled to Feb 2014

Notikewin/Falher hz drilled 25

Total Locations in Inventory 570

Alberta Deep Basin:

Notikewin/Falher Hz Program

Tourmaline

Minehead 5-12

Marsh 16-26

14.7 mm/d @ 6.0MPa

Wild R 12-28

37.0 mm/d @ 11.0MPa

Apr 2014

6

T. 57

T. 59T. 59

R. 9 R. 7 R. 5 R. 3 R. 1, W6M R. 24 R. 22


T. 61

T. 63

T. 53

T. 55

T. 57

T. 51

T. 49

T. 47

T. 45

R. 24 R. 22 R. 20 R. 18 R. 16

Alberta Deep Basin: Wilrich Regional Resource Play

Tourmaline

Wild R. 14-20

Hinton

Ansell

Marsh

Harley

Pine Ck.

Wroe

Minehead

Horse

Cecilia

Wild River

Obed

R. 26

Tourmaline

Hinton 6-32

Tourmaline

Minehead 5-12

Tourmaline

Berland R.

14-15

Musreau/

Kakwa

Lovett

Kakwa13-20 HZTL

Test Rate 21.2 mmcf/d

@13.0 Mpa (csg)

Minehead 1-19


@ 24.3 Mpa (csg)

Edson 15-35 HZTL


@ 21.5 Mpa (csg)

Minehead


@ 19.7 Mpa (csg)

Musreau 8-25 HZTL


@ 20.1 Mpa (csg)

Wilrich Opportunities

Total Hztl’s Loc’s 1,625

(2 wells /Section)

2014 Drilling Program 55-60 hzs

Horse/Smoky 13-3 HZTL


@ 14.9 Mpa (csg)

Edson


Tourmaline 3D

Tourmaline Lands


2012-2013 Horizontal Wells

Wilrich Sand Reservoir

Wild River 4-17 HZTL


@ 5.8 Mpa (csg)

Horse/Smoky

Test Rate 70.1 mmcf/d @ 15.0 Mpa

IP 35.0 mmcfpd

Lovett 7-15


@ 7.8 Mpa (csg)

Edson 14-19 (Oct/13)

22 mmcf/d IP

Kakwa 13-15/4-10 Pad (Nov/13)

54.6 mmcf/d IP, 360 bbls/day cond

Apr 2014

7


Apr 2014DEEP BASIN - Deep Basin Overall Area

METERS

0 2,500 5,000 7,500

PETRA 22/08/2013 9:34:58 AM

T. 57

T. 59

Edson

Harley

Minehead

Horse

Cecilia

T. 59

Musreau

/Kakwa

Lovett

R. 7 R. 5 R. 3 R. 1, W6M R. 24 R. 22 R. 20

T. 61

T. 53

T. 55

T. 57

T. 51

T. 49

T. 47

T. 45

R. 24 R. 22 R. 20 R. 18 R. 16

T. 43

R. 14

AlbertaNE

BC

16-36 Comp. 100%

30 MMcf/d

200m3/d oil cond. capacity

Sour rated to 20%

5% Keyera West Gas Plant

Pembina 150 MMcf/d

Minehead Facility 15-12-50-21-W5M

Tourmaline’s 1.1 MM Acres, the largest land position in the

Deep Basin, is serviced by a network of 6 gas plants and a

series of large pipeline laterals.

All gas plants have liquid recovery capability.

Total current processing capacity of 400-425 mmcfpd.

50-55 mmcfpd Musreau gas plant expansion in 2H 2014.

50-55 mmcfpd expansion at Wild R with a Feb 2015 start-up.

Infrastructure can be continually upsized to accommodate

growing production volumes ensuring lower future operating

costs and ever improving production efficiencies.

Tourmaline Pipelines


Tourmaline Lands

Future Tourmaline Pipelines

Main Sales Pipelines

Tourmaline

Anderson 1-9

25-30 MMcf/d

Tourmaline

Minehead 15-12

110-120 MMcf/d

Tourmaline

Wildriver 14-20

110-120 MMcf/d

Tourmaline

Berland 14-15

35-40 MMcf/d

Tourmaline

Musreau 8-13

60 MMcf/d

Edson

Lateral

Lovett

Lateral

Cabin

Lateral

TCPL Main Line

Tourmaline

Hinton 6-32

60 MMcf/d

Alberta Deep Basin Infrastructure

R. 3

8


Feb. 2014

Alberta Deep Basin Santonia Acquisition DEEP BASIN - Deep Basin Overall Area

METERS

0 2,500 5,000 7,500

PETRA 22/08/2013 9:34:58 AM

T. 57

T. 59

Tourmaline

Wild R. 14-20

Hinton

Ansell

Edson

Marsh

Harley

Pine Ck.

Wroe

Minehead

Horse

CeciliaWild River

Sundance

Obed

T. 59

R. 26

Tourmaline

Hinton 6-32Tourmaline

Minehead 5-12

Tourmaline

Berland R.

14-15

Musreau

/Kakwa

Lovett

R. 9 R. 7 R. 5 R. 3 R. 1, W6M R. 24 R. 22 R. 20

T. 61

T. 63

T. 53

T. 55

T. 57

T. 51

T. 49

T. 47

T. 45

R. 24 R. 22 R. 20 R. 18 R. 16

T. 43

R. 14

Cardium

Viking

Mannville/Notikewin

Falher

Cadomin

Dunvegan

Nikinassin

Bluesky

Gething

Wilrich

Gething

AlbertaNE

BC

T. 51


Tourmaline 3D

Tourmaline Lands


2013 Significant New Discoveries

Santonia (Harlech) Lands

Santonia Acquisition

Current Production/Reserves

3,800 boepd from 72 producing wells

24.4 mmboe 2P Reserves

350(+) new locations

Land Base

184 Sections New to Tourmaline

78 Sections Partnered with Tourmaline

220,910 Gross Acres / 128,476 Net Acres

Majority of lands imaged with 3D seismic

16-36 Comp. 100%

30 MMcf/d

200m3/d oil cond. capacity

Sour rated to 20%

5% Keyera West Gas Plant

Pembina 150 MMcf/d

Current Production 75,000 boepd


Tourmaline Land Base 2,150 sections

Drilling Inventory 3,200 locations (vertical)

(2 wells per section only)

4,000(+) locations (hz)

2014 Drilling Program Approx. 8-10 verticals,

70-75 horizontals

9

Santonia Acquisition

Apr 2014

Significant addition to, and contiguous with, Tourmaline’s existing Deep Basin core area (220,910

gross/128,416 net additional acres).

A large contiguous land base already detailed with 3D seismic, consistent with the Tourmaline

technical approach that yields industry leading well results.

Existing reserves acquired for $7.10/boe (2P) $10.54/boe (1P), with considerable potential

incremental reserve upside.

Current production 3,800 boepd, Tourmaline plans to add one rig to Harlech in 2H 2014 and grow

2015 production to 6,000 boepd (+) via a series of low risk horizontals.

Future inventory of approximately 350 horizontal locations (Wilrich, Notikewin, Viking, Falher,

Cardium), that is expected to increase over time. (Santonia currently indicates 650 locations)

Existing working interest facility network at Harlech that complements Tourmaline’s significant

Deep Basin infrastructure complex.

Tourmaline has more than doubled the production and reserve base in less than 2 years for all the

modest size corporate transactions completed to date (Altia Energy Ltd., Pienza Petroleum Inc.,

Vigilant Exploration Inc. Exshaw Oil Corp., Cinch Energy Corp., Huron Energy Corporation). The

Tourmaline share price has appreciated by 50% or greater within 12 months of the closing of

each of these transactions.

10

AlbertaNE

BC

NEBC Montney Gas Condensate and Peace

River High Charlie Lake Oil Core Areas

T77

T81

T83

T79

T69

T73

T75

T71

T67

T85

R19R21 R 7R 9R11 R 1, W6MR 3R 5R23

T66

Dawson Ck

Montney

Pool

R15R17 R13

Parkland

Wabamun

Gas Pool Parkland

Montney

Pool

Devonian

Non-Deposition

Dunvegan

Gas Field

Tourmaline Gas Property

Tourmaline Oil Property


Tourmaline Drilling Rig

Current Prod. 45,000 boepd

2010 – Mar 2013 87 Montney Hz Gas Wells,

Drilling 70 Charlie Lake Hz Oil

Wells, 8 vertical oil wells

Drilling Inventory In excess of 800

Montney horizontal locations

Spirit River 1,200(+) Hz Charlie Lake

oil locations


Apr 2014

11

Sunrise/Dawson NEBC Montney/Doig

Development

Westcoast

McMahon

Gas PlantCurrent Prod. 175-180 mmcf/d

3,500-4,000 bopd (cond,ngls)

5,000 boepd tested behind pipe


2013 – Drilling 34 Montney Hz Gas

Drilling Inventory In excess of 550 horizontal

Montney locations

Sunset-Dawson Montney

Montney Wells Drilled: 99

No of Wells Tested: 97

Avg rates from the last 30 months drilling

Avg. Test Rate/IP : 11.41 mmcf/d

Avg. Liquid Rate : 315 bbls/d

Tourmaline has become the 5th

largest

Montney producer in Western Canada in

the second quarter of 2014 with production

of 33,000-35,000 boepd.

Apr 2014

12

METERS

0 1,000 2,000 3,000

PETRA 4/24/2013 12:28:59 PM

7-3 Hztl

1550 bopd

1.9 mmcfpd gas

Tourmaline Mulligan 14-23 Vert.

Cum. 400 mtsb Oil

Cum. 1.5 Bcf Gas

14-8 Hztl

1283 bopd

2.0 mmcfpd gas

New Pool Discovery

Earring 13-8 Vert.

Test . Rate 700 boepd

Peace River High Regional Charlie Lake

Resource PlayApr 2014

T. 79

R. 9 R. 7 R. 5

T. 77

T. 83

T. 81

T. 75

Original Spirit River 2002

Discovery Well

DDV/APC 3-3-78-7-W6M

R. 10

Original Spirit River

Pool Boundary 2011

T. 76

R. 6

T. 76

Tourmaline Producing Oil Wells

Tourmaline Producing HZTL Wells

Tourmaline Producing Wells

Tourmaline Battery Site

Industry CLLK penetrations

Tourmaline 2012/2013 Prop. HZTL Wells

Legend

Charlie Lake 2011 Bdy.

Tourmaline Lands

Charlie Lake 2013 Bdy.

Lower

Charlie

Lake

Upper

Charlie

Lake

Type Log

2013 Spirit River Charlie Lake Drilling Summary

• 1,200 Horizontal Locations along Regional Play Fairway

• Current Reserves of 49.9 mmboe (Jan 1, 2014 GLJ)

• Total ultimate potential 0.5 billion boe (Company

estimate), Tourmaline capture 75-80%

• Regional pool defined by 75 horizontal and 140 existing

vertical wells

• 352 mboe 2P reserves per horizontal

• 2014 Drilling; 50-60 Horizontal wells

• $3.75-$4.0M horizontal drill complete cost

• Mulligan Battery 2H 2014, 3,000 bopd initial capacity

• Tourmaline operated sour gas injection plant Q3 2014, 60

mm/d planned capacity

TOU 1-30

300 bopd, 0.5 mm/d gas

6-10 Vert.

Cum. 55 mtsb Oil

Tourmaline Earring 15-16

440 bbls/d 30° API Oil

2.7 mmcfpd Gas

Trcl hz

800 boepd

5-29/1-30 Pad

2450 bopd

(Oct/13)

TOU Mulligan 1-14

200 bopd

1.1 mm/d

TOU 1-14

310 bopd

3.5 mmcfpd gas

13


New E&P Plays and Opportunities

Paleozoic Gas Play

• 200-300 bcf Targets

• 10 Prospects

• Sunset 11-17 Cased to

TD, 3 Paleozoic Pay

Zones, Prod Testing

after Break-up.

Regional Charlie Lake Oil Play

2013 Regional Discovery. Est

ultimate Reserves of 0.5 billion

boe (Company estimate),

Tourmaline 75-80% capture.

Resthaven/Smoky Emerging Montney Play

• 100 Sections of Montney Rights

• 2 vertical, 1 hz gas well in 2014 program to

date

Emerging Outer Foothills Cardium Oil Play

• Over 500 Locations in Inventory

• 2013 Drilling 2-3 Locations

Emerging Fracture Enhanced Wilrich Play

•3 High Rate Verticals Drilled

•Over 150 Locations in Inventory

•2013 Drilling 5-7 Locations

•Initial short radius lateral successful

Deep Basin Devonian Strat Traps

• 6 Prospects, 2H 2013 Drilling.

• Smoky 7-15 Cased to TD, 4

Potential Paleozoic Pay Zones,

Completion when accessible after

break-up.

Apr 2014

14

Production & Reserves Growth

Feb 2014

Reserves

2010 2011 2012 2013

(mmboe) (mmboe) (mmboe) (mmboe)

PDP 38.9 67.3 91.9 122.3

TP 93.0 149.0 249.2 316.5

2P 158.2 270.1 438.1 590.1

2010 2011 2012 2013

(/boe) (/boe) (/boe) (/boe)

2P FDA (i)

$15.55 $13.34 $10.35 $11.84

With FDC

(i) See February 2014 press release for full FD&A calculations

0

20,000

40,000

60,000

80,000

100,000

120,000

2009 Avg 2010 Avg 2011 Avg 2012 Avg 2013 Avg 2014 Avg (F)

BO

EP

D

Production

0

100

200

300

400

500

600

PDP TP 2P

MM

BO

E

Reserves (GLJ)

2010 2011 2012 2013

15

Tourmaline Improving Capital Efficiencies

Apr 2014

$53,484

$47,643

$32,170

$27,224

$14,963

0

10,000

20,000

30,000

40,000

50,000

60,000

2010 2011 2012 2013 2014

$/boepd

• Migration to 90% hz wells in 2H 2012/2013

• Migration to multi-well pads in 2013/2014

• Fewer vertical pilots in 2014 vs 2013

• Proportionately less facilities expenditures

in 2013 and 2014.

16

Gas Development Location

Inventory and Economics

AB Deep Basin Outer Foothills AB Deep Basin B.C. Montney Charlie Lk

Vertical Vertical Horizontal Horizontal Horizontal

Total Well Costs 4.0 5.0 5.25 3.6 3.6

(Drill, Case, Complete, $ Million)

Average Reserves/Well (bcfe)* 2.5 5.5 5.0 5.6 2.2

Year 1 Production Rate 1.45 mmcfpd 3.0 mmcfpd 3.2 mmcfpd 3.3 mmcfpd 232 boepd

Development Cost/boe $9.60 $5.45 $6.30 $3.86 $9.82

Operating Expenses/boe $4.00 $5.00 $3.50 $3.50 $8.75

Royalty Rate 8% 8% 7% 22% 22%

Net Present Value @ $3,434 $10,695 $10,140 $11,680 $6,209

10% (000’s)

Internal Rate of Return 35% 72% 74% 128% 71%

Year 1 Gas Price ** $4.08 $4.08 $ 4.08 $ 3.98 $ 4.08

Future Development Locations 2,750 450 4,000 800 1,200

* management internal estimate (2 wells/section)

** GLJ Dec. 31, 2013 escalated price forecast

667 future locations in 2013 GLJ report

Apr 2014

17

5 Year Development Outlook

2014 Dev. Drilling (67 Deep Basin)(34 Montney)(50 Spirit River)(2 Other)

Cumulative Production During Outlook Period 341.2 mmboe

Remaining Developed Reserves at End of Outlook Period 451.7 mmboe

Remaining Drilling Inventory at End of Outlook Period 7,863 (91% of current)

Natural Gas Price 2014 - $4.64/mcf (AECO)

Prod’n Annual Prod’n Pre-tax Pre-tax After Tax After Tax Capital (Net Debt)

BOEPD MBOE Cash Flow CFPS Cash Flow CFPS Expenditures Cash

*** ***

2014 120,000 43,800 1,086 5.30 1,086 5.30 1,100 (631)

2015 159,500 58,217 1,480 7.14 1,480 7.14 1,250 (360)

2016 189,095 69,209 1,738 8.36 1,738 8.36 1,250 168

2017 221,077 80,693 1,971 9.48 1,797 8.64 1,250 756

2018 244,633 89,291 2,182 10.50 1,952 9.39 1,250 1,499

* Outlook derived by utilizing, among other assumptions, historical Duvernay/Tourmaline production performance and reserve addition costs.

** 2015 and beyond provided for illustration only. Budgets and forecast beyond 2014 have not been finalized and are subject to a variety of factors including prior year’s results

*** See “Non-GAAP Measures” in Forward Looking Statement Advisories

**** Based on internal estimates by a qualified reserve evaluator

Reserves Per Well Utilized (bcfe)****

Deep Basin Horizontal 4.1

NEBC Montney Horizontal 4.4

Spirit River 2.2

Apr 2014

18

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000 180,000

200,000

220,000

240,000

260,000B

OE

/Day

Production Outlook

2018 Production

2017 Production

2016 Production

2015 Production

2014 Production

Base

2010-2013 Cost Reduction Strategy

$6.51$6.34

$5.58

$4.43$4.35

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

2009 Avg 2010 Avg 2011 Avg 2012 Avg 2013 Avg

$/boe

Operating Costs

$2.46

$1.29

$1.02

$0.79$0.74

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

2009 Avg 2010 Avg 2011 Avg 2012 Avg 2013 Avg

$/boe

General and Administrative Costs

The goal is to continue to be one of the lowest cash cost producers in the Basin in 2014.

Tourmaline has ongoing facility plans and projects in the Deep Basin that will systematically improve

production efficiency and reduce costs.

The staff required to effectively operate a 80,000 boepd growing to 100,000 boepd company, was built in

2010-2012 and only minimal staff additions will be necessary to accommodate further growth.

Mar 2014

19

2014 Base Budget/2015 Outlook

2014 2015 (Prelim.)

Capital Spending (not including acquisitions/dispositions) $1,100.0 million $1,250.0 million

Annual Average Production 120,000 boe/d 159,500 boe/d

Average Q4 2014 /Q4 2015 Production 138,000 boe/d 176,667 boe/d

Annual Cash Flow(ii)

$1,085.9 million $1,479.6 million

Cash Flow Per Share – Diluted(i)

$5.30 $7.14

Q4 2014/Q4 2015 Annualized Cash Flow per share – Diluted (i)

$6.12 $8.12

Year End Net Debt (ii) (iii)

$(631.1) million $(360.4) million

Assumptions

1. 2014 Gas Price (NYMEX) - $4.57 (U.S.) $4.64 AECO; 2015 Gas Price (NYMEX) - $4.48 (U.S.) $4.43 AECO.

2014 Oil Price - $97.40 (W.T.I. – U.S.); 2015 Oil Price - $93.38 (W.T.I. – U.S.)

2. Year-end Debt projections assume no new equity issues or asset sales.

(i) based on 201.2 million basic shares outstanding

(ii) see “Non-GAAP Measures” in Forward Looking Statement Advisories

(iii) includes an estimate of net debt and related transaction costs associated with the acquisition of Santonia of approximately $42.0 million.

Apr 2014

20

EP Outlook Q2 – Q4 2014

Major 2H 2014 Facility start-ups at Spirit River (new gas plant with enhanced liquid

recovery and power generation), Doe B.C. and Musreau Ab. (existing plant expansions) will

yield approximately 25,000 boepd of new production in Q4 2014.

Drill and complete 60 Deep Basin horizontals in 2H 2014 including high potential drilling

targets on the Santonia Deep Basin land base.

Post break-up completions of Paleozoic discoveries at Sunset B.C. and Smoky Ab. (7 new

deep zones to test).

Results from multiple delineation wells following up the late 2013 Lower Montney

condensate rich discovery in Dawson-Sunrise.

Completion of first Triassic Doig horizontal at Sundown.

Apr 2014

21

Capitalization to Date

Insiders Public Total

millions of shares Price millions of shares Price $

October 2008 15.00 3.50 22.00 7.00 301.0

13.50 7.00

December 2008 (Flow Thru) 1.25 10.00 1.25 10.00 25.0

April 2009 (Alberta Deep Basin) 3.00 8.00 24.0

May 2009 3.00 10.00 11.00 10.00 140.0

September 2009 (Pienza Acq.) 3.55 12.00 42.6

November 2009 (Vigilant) 3.84 12.00 46.1

(Exshaw) 1.10 12.00 9.78 12.00 130.5

(Financing common) 2.29 15.00 9.50 15.00 176.9

(Financing flow thru) 0.75 18.00 1.00 18.00 31.5

January 2010 (Altia) 6.41 15.00 96.2

March 2010 (Financing common) 1.50 18.00 8.00 18.00 171.0

(Financing flow thru) .45 21.60 2.00 21.60 52.9

June 2010 (Greater Hinton) 2.50 18.00 45.0

August 2010 (Financing flow thru) 0.30 22.00 0.85 22.00 25.3

November 2010

(IPO + Over-Allotment) 0.85 21.00 11.50 21.00 259.4

March 2011

(Financing flow thru) 0.38 30.00 1.20 30.00 47.4

May 2011

(Public offering + Private Placement) 0.50 25.50 6.33 25.50 174.0

July 2011

(Cinch) 6.36 33.02 210.1

October 2011

(Public Offering + Private Placement) 0.30 33.00 4.6 33.00 161.7

November 2011

(Flow Thru Public Offering + Private Placement) 0.16 41.00 1.20 41.00 55.8

April 2012

(Flow Thru Private Placement) 0.15 28.80 1.25 28.80 40.4

August 2012

(Public Offering + Private Placement) 0.04 29.00 4.6 29.00 134.5

November 2012

(Public Flow Thru + Private Placement) 0.05 36.90 1.0 36.90 38.7

December 2012

Huron 7.40 33.02 244.4

March 2013 (Public Offering) 0.03 34.25 5.75 34.25 198.0

Flow Thru 0.09 42.15 0.75 42.15 35.2

October 2013 (Public Offering + Private Placement) 0.05 41.75 3.45 41.75 145.9

Flow Thru Public + Private 0.08 51.60 0.85 51.60 47.7

February 2014 (Public Offering + Private Placement) 0.02 47.50 4.60 47.50 219.2

April 2014 Santonia 3.23 54.94 177.4

Shares issued for option exercise 9.36

51.18 148.75 3,497.9

Insiders and associates have 26% of the basic common stock (31% fully diluted) and have contributed 11% of the basic cash.

22

APPENDIX

Hedging Summary

Apr 2014

2014 Gas Hedges

(April – December)

Volume

mcf/d

Weighted Avg Price

$/mcf(2)

Fixed Price Hedges

AECO (CDN$)(1)

Fixed Nymex (CDN$)(3)

170,384

47,236

$ 4.12

$ 4.49

Total Fixed Hedges 217,620 $ 4.20

% gas hedged 36%

Basis Differentials (US$) 81,109 $ (0.49)

Tourmaline also has 27 mmcf/d of Nymex-AECO basis differentials at US$0.49 from 2015-2022.

Call Options/Swaptions (Writers)(CDN$) 22,861 $ 4.28

2014 Oil Hedges

(April – December)

Volume

bbl/d

Weighted Avg Price

$/bbl

Swaps (US$)

Costless Collars (US$)

1,098

1,100

$ 95.95

$ 80.91-94.29

Total Volume Hedged 2,198

% oil hedged 12%

(1) Includes Costless Collars, WAP is based on the floor

(2) Excludes heat content lift

(3) These US Dollar hedges have been converted to CDN$ for purposes of this presentation.

24

EP Growth Plan

(Original Business Plan)

• Primary growth mechanism will be a conventional EP Program (including

Resource plays).

• Build 2-3 core EP areas during initial three years of operations.

• Strive for large land positions, operatorship and infrastructure control in

those core areas.

• Achieve profitable annual growth via low operating cost/high netback

properties.

• Operate with a relatively small, technically strong staff.

• Dispose of non-core assets on a continuous basis, as appropriate.

Sept 2008

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NORTHWEST TERRITORIES

ALBERTAB.C.

Edmonton

Calgary

Peace River High

Charlie Lake

Deep Basin

Core Area

Alta. Deep Basin

Alta./NEBC

Resource Plays

Alta./NEBC

Resource Plays

Alta./NEBC

Resource Plays

Central Alberta

Devonian Oil

Western Canadian Sedimentary Basin

Selected Exploration & Production Opportunities

Tourmaline

Lands

NEBC

Montney

Gas

Condensate

Adapted from Canadian Society of

Petroleum Geologists Publications

Peace River High

Charlie Lk. Oil.

26

Deep Basin Historical Production/Reserves

(Remaining Cretaceous Potential)

Total Cumulative Production to Date ~9.1 Tcf (May 2012)

Remaining Reserve Potential ~16.5 Tcf (Aug 2009)

(Vertical Wells only)

Add 1 hz well per section ~ 36.6 Tcf (2012 est)

Utilization of multi-zone completions will improve per well

recoveries beyond the historical averages utilized in this analysis.

(2.0-3.0 bcf vs. 1.6 bcf). Assumed horizontal wells recover 3.5

bcf/well.

Area Analysed

Grande Prairie

Grande

Cache

Hinton

Whitecourt

Numbers behind the scene

9200 gas wells, in 160 Twps.

Average U.R.R. of 1.6 Bcf/Well

(single and dual zone completions)

Equalling approx 8.1 Tcf. currently

produced.

~15 Tcf Total U.R.R.

Using 4 Wells/Section over the Area

An additional 5600 gas wells

Equalling approx. 9.0 Tcf. U.R.R

The Alberta Deep Basin is one of the largest sweet gas provinces in the world. The unique geologic setting offers multiple, stacked

opportunities in a concentrated geographic area; 10-15 stacked tight gas sands exploited vertically, gas/carbonate targets

exploited horizontally, hybrid shale silt plays to be exploited horizontally.

5 Year Production Potential 5.0(+) BCF/D

*Contingent on natural gas price performance

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Jan 2014

Alberta Deep Basin Development Summary

Cardium

Viking

Mannville/Notikewin

Falher

Cadomin

Dunvegan

Nikinassin

Bluesky

Gething

Wilrich

Gething

Depositional Seismic TOU Vertical Horizontal Wells/

Environment Mappability Completions Completions

(7 Geologists) (3 Geophysicists) (6 Pete Engineers, 4 Ops Engineers)

Widespread/Shallow Partial 72 14

Marine

Marine Bars/Channels Partial 58

Marine Bars Limited 28

Channels Full 70 20

Channels Full 72 12

Shoreline Sands Partial 50 60

Shoreline Sands, Partial 22 1

Bars

Fluvial Channels Partial 26 1

Widespread/ Occasional 69

Braid Plain

Tourmaline has 3,150 vertical locations and 3,650 hz locations in inventory.

28

North East BC Montney Water Management

May 2013

• Non-potable water sourced lined reservoir for frac operations (2 non-freshwater wells)

• Separate water pipeline system to existing and future pads.

• Frac water pumped to pads for fracs and returned to reservoir on well clean-up.

• Eliminates surface water/groundwater requirements, reduces completion costs ($250K/well),

eliminates trucking, etc.

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Improving Montney Performance/

Efficiency History (More for Less)

0

5

10

0

5

10

15

20

Initial DDV Mntn Wells 2010 Tourmaline 2011 Tourmaline

Drill/C

om

ple

te C

ost (

$M

)

Init

ial

Productio

n R

ate (m

mcfpd)

Montney Performance/Efficiency History

(Duvernay/Tourmaline)

Initial Production Rate (mmcfpd) Drill/Complete Capital Cost ($M)

30

Sept 2013


Growing a 50,000 bpd Liquids Business

NEBC Montney

• Current Cond/ngl (09/13) 3,500 bpd

• 2014 Sunrise ESC 2,500 bpd

• 2016 C2+ Opportunity 7,500 bpd

Southern Deep Basin Deep Cut

• 2016 C2+ Opportunity 9,500 bpd

The Regional Charlie Lake oil resource play and the ngl/condensate projects in all

three core EP areas provide the opportunity to grow to 50,000 bpd within 3 years.

Spirit R./Peace R. High Trcl Oil

• Current Spirit R .Oil Prod Capability 6,000 bpd

• 2H 2014 Est Total Peace R. High Oil Prod 10,000 bpd

• 2016 Total Oil Prod Opportunity 20,000 bpd

• 2H 2014 Spirit R. ESC (C3+) 2,500 bpd

• 2016 C2+ Prod Opportunity via Assoc. 10,000 bpd

Gas Deep Cut

Wild River/Saturn Deep Cut Participation

• Q4 2013 S1 C2+ Prod 1,500 bpd

•2H 2015 S2 C2+ Est. Prod 9,500 bpd

Total Liquid Prod. Outlook

• Est 2013 Exit 13,000-13,500 bpd

• Est 2014 Exit 22,000-25,000 bpd

• Est 2015 Exit 35,000-37,000 bpd

• 2H 2016 Potential 50,000-70,000 bpd

(Incl. Deep Cuts)

31

The Golden Age of Gas?

Technological change and low prices have dramatically improved the efficiency of the remaining

Natural Gas Business.

Natural Gas is the logical ‘bridge’ energy source for the next 2-3 decades.

Plentiful, clean, economic.

North American (and Worldwide) demand is growing rapidly.

Coal to gas switching for electric generation.

Natural gas in the transportation sector (truck fleet).

A relatively cheap, gas fueled Industrial Renaissance?

(Inexpensive feedstock for Chemical Industry, lower fuel costs for Manufacturing, etc)

Worldwide LNG business expansion will create a truly Global commodity.

Canadian gas will receive world price later this decade.

Replacement of coal, oil and gasoline with natural gas presents the largest Global C02

emission

reduction opportunity.

32

Forward Looking Statement Advisories

Certain information contained in this presentation constitutes forward-looking information within the meaning of applicable securities laws.

This information relates to future events or the Company's future performance. All information other than information of historical fact is

forward-looking information. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend",

"propose", "might", "may", "will", "shall", "project", "should", "could", "would", "believe", "predict", "forecast", "pursue",

"potential" and "capable" and similar expressions are intended to identify forward-looking information. This information involves known

and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such

forward-looking information. No assurance can be given that these expectations will prove to be correct and such forward-looking

information should not be unduly relied upon. This information speaks only as of the date of this presentation or, if applicable, as of the date

specified in those documents specifically referenced herein. In addition, this presentation may contain forward-looking information

attributed to third-party sources.

Without limitation of the foregoing, this presentation contains forward-looking information pertaining to the following: the reserve potential

of the Company's assets; the anticipated production from the Company's assets and anticipated future cash flows from such assets; the

Company's growth strategy and opportunities; the Company's capital exploration and development programs and future capital

requirements; the estimated quantity and value of the Company's proved and probable reserves; expectations regarding the ability to raise

capital and to continually add to reserves; the Company's estimates of future interest and foreign exchange rates; the Company's

environmental considerations; the Company's assumptions regarding commodity prices; the Company's expectations regarding reduction in

its operating costs; the timing of commencement of certain of the Company's operations and the level of production anticipated by the

Company; the potential for production disruption and constraints; supply and demand fundamentals for crude oil and natural gas; the

Company's access to adequate pipeline capacity; the Company's access to third-party infrastructure; the Company's drilling and

recompletion plans; the Company's expected capital expenditures; expected debt levels and credit facilities; industry conditions pertaining

to the oil and gas industry; the Company's plans for, and results of, exploration and development activities; the planned construction of the

Company's gathering, transportation and processing facilities and related infrastructure; the timing for receipt of regulatory approvals; the

Company's treatment under governmental regulatory regimes and tax laws; the Company's future general and administrative expenses; and

the Company's expectations regarding having adequate human resource staffing.

33

With respect to forward-looking information contained in this presentation, assumptions have been made regarding, among other things:

future crude oil and natural gas prices; the Company's ability to obtain qualified staff and equipment in a timely and cost–efficient manner;

the regulatory framework governing royalties, taxes and environmental matters; the Company's ability to market production of oil and

natural gas successfully; the Company's future production levels; the applicability of technologies for recovery and production of the

Company's reserves; the recoverability of the Company's reserves; future capital expenditures to be made by the Company; future cash

flows from production meeting the expectations stated in this presentation; future sources of funding for the Company's capital program;

the Company's future debt levels; geological and engineering estimates in respect of the Company's reserves; the geography of the areas in

which the Company is conducting exploration and development activities; the impact of competition on the Company; and the Company's

ability to obtain financing on acceptable terms.

Actual results could differ materially from those anticipated in this forward-looking information as a result of the risk factors set forth in the

Company's reports and documents on file with Canadian securities regulatory authorities at www.sedar.com or the Company's website at

www.tourmalineoil.com, which risk factors should not be construed as exhaustive. See specifically "Forward-Looking Statements" and

"Risk Factors" in the Company's Annual Information Form.

Included in this presentation are estimates of the Company's 2014-2018 cash flow and cash flow per share which are based on various

assumptions as to production levels, commodity prices and other assumptions and in the case of the years other than 2014 are provided for

illustration only and are based on budgets and forecasts that have not been finalized and are subject to a variety of contingencies including

prior years results. To the extent such estimates constitute a financial outlook, they were approved by management of the Company in

March 2014 and are included to provide readers with an understanding of the Company's anticipated cash flow based on the capital

expenditures and other assumptions described and readers are cautioned that the information may not be appropriate for other purposes.

In addition, information relating to "reserves" is deemed to be forward-looking information, as it involves the implied assessment, based on

certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated, and that the reserves described

can be profitably produced in the future. See also "Certain Reserves Data Information" in the Company's Annual Information Form.

Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or

otherwise and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of

new information, future events or otherwise, unless specifically required to do so pursuant to applicable law.


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http://www.tourmalineoil.com/


Oil and Gas Advisories

Certain crude oil and natural gas liquids ("NGLs") volumes have been converted to millions of cubic feet equivalent ("mmcfe") or

thousands of cubic feet equivalent ("mcfe") on the basis of one barrel ("bbl" of crude oil or NGLs to six thousand cubic feet ("mcf") of

natural gas. Also, certain natural gas volumes have been converted to barrels of oil equivalent ("boe"), thousands of boe ("mboe") or

millions of boe ("mmboe") using the same equivalency measure. Such equivalency measures may be misleading, particularly if used in

isolation. A conversion ratio of one bbl to six mcf is based on an energy equivalency conversion method primarily applicable at the burner

tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current

prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be

misleading as an indication of value.

This presentation contains disclosure regarding finding and development costs. The aggregate of the exploration and development costs

incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect

total finding and development costs related to reserves additions for that year.

The estimated net present values disclosed in this presentation do not represent fair market value.

Unless otherwise expressly stated, the information in this presentation pertaining to future drilling locations or drilling inventories is based

solely on internal estimates made by management and such locations have not been reflected in any independent reserve or resource

evaluations and have not been recognized as reserves or resources as defined in NI 51-101.

Similarly, unless otherwise expressly stated, the information in this presentation pertaining to targeted reserve volumes from future drilling

is intended to indicate that in making its internal drilling decisions, the Company seeks to target drilling locations that, based on previous

drilling results and its own internal assessments, it believes will on average ultimately generate the indicated volumes.

Non-IFRS Measures

This presentation includes references to financial measures commonly used in the oil and gas industry such as "cash flow" and "net debt",

which do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS"). Management believes

that in addition to net income, cash flow and net debt are useful supplemental measures as they are a measure of a company's ability to

generate the cash necessary to repay debt or fund future growth through capital investment. However, investors are cautioned that these

measures should not be construed as an alternative to net income determined in accordance with IFRS as an indication of the Company's

performance. The method of calculating these measures may differ from other companies and, accordingly, they may not be comparable to

similar measures used by other companies. For these purposes, "cash flow" is defined as cash provided by operations before changes in non-

cash working capital and "net debt" is defined as long-term bank debt plus working capital (adjusted for the fair value of financial

instruments and future taxes).

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Tourmaline Oil - Corp Overview May 2014

Investor Relations

Transcript of Tourmaline Oil - Corp Overview May 2014