TOURMALINE 2022 APPROVED BUDGET

Tourmaline Oil Corp. (TSX:TOU) (“Tourmaline” or the “Company”) is pleased to announce a guidance update, the approved budget for 2022 and details on its free cash flow (“FCF”)(1) allocation strategy, including the declaration of a special cash dividend and an increase in its regular quarterly cash dividend.

Tourmaline Oil Permit Download

Tourmaline-Well-Spud-by-Quarter-2021 Download

Tourmaline-Oil-Corp-Facility-License-Since-2021 Download

2H 2021/2022 EP CAPITAL BUDGET

The recently approved 2022 EP capital budget of $1.125 billion is expected to deliver average production of 500,000-510,000 boepd, $3.7 billion of cash flow (“CF”)(2) and $2.5 billion of FCF on strip pricing(3)

The 2022EP capital budget, essentially a maintenance program, is $62 million less than previous estimates given specific facility projects and select drilling accelerated into 2H 2021. Production, CF, and FCF are all higher than previous 2022 guidance. The Company expects capital efficiencies to improve further in 2022 as a significant portion of the planned 2022 facility expenditures have been accelerated into 2H 2021.

The 2021 EP capital program has been increased to $1.375 billion with the 2H 2021 increase focused on liquids business/production increases and related liquids margin improvements, and the modest acceleration of drilling activities. Full-year 2021 average production is now expected to be 440,000-445,000 boepd and increased full-year CF of $3.0 billion is now anticipated along with $1.6 billion of FCF. The majority of the incremental facility capital is being expended in Q3, yielding estimated capital spending of $420 million in Q3 and $350 million in Q4. The updated 2H 2021/2022 EP capital program is consistent with previous guidance

Material reduction in drilling times throughout 2021, particularly in NEBC, will result in completion of the originally planned full-year 2021 drilling program by November. BC Montney per-well drilling times have been reduced by approximately 20% in 2021 (two days less per well). As a result, the Company has elected to accelerate the drilling of approximately 21 wells from 2022 into Q4 2021 in order to maintain the existing top-tier, Company operated drilling fleet at full capacity, rather than release rigs at this time. The majority of these incremental wells will not be completed and brought on production until 2022.

The Company will monitor natural gas supply/demand balances and schedule new production startups appropriately through the course of winter and the balance of 2022. Tourmaline has incremental egress on the GTN system of 100 mmcfpd in 2022 and a further 50 mmcfpd in 2023, as well as 140 mmcfpd of egress to the Gulf Coast accessing international LNG commencing in 2023. Total volumes on the GTN system will grow from 330 mmcfpd currently to 480 mmcfpd by 2H 2023, with over 80% of these volumes accessing the California market. Incremental Company gas volumes in 2022/2023 will not be directed at AECO or Station 2.

Acceleration of both the Gundy Phase 2 and Nig Creek deep cut installations/expansions will add approximately 15,000 bpd of condensate and natural gas liquids (“NGLs”) (including 5,000 bpd of propane) by exit 2021/Q1 2022. Liquids margins will also be improved through utilization of Company operated facilities rather than third party processing options. Margin improvement will also be realized through an increase in Ripet propane exports. 2022 average annual liquids production of approximately 115,000 bpd is now expected, up 2,000 bpd from previous estimates. Edmonton propane and butane prices are up over 200% and 40%, respectively, over the past 12 months.