CALGARY - TORC Oil & Gas Ltd. ('TORC' or the 'Company') (TSX: TOG) is pleased to announce financial and operating results for the three months ended March 31, 2020.

The associated Management's Discussion and Analysis ('MD&A') and unaudited interim financial statements as at and for the quarter ended March 31, 2020 can be found at www.sedar.com and www.torcoil.com.

PRESIDENT'S MESSAGE

The first quarter of 2020 was a continuation of TORC's operational momentum from 2019 with a consistent focus on the Company's long-term objectives of delivering disciplined growth in combination with providing a dividend, while preserving financial flexibility.

TORC's active first quarter drilling program was concentrated in southeast Saskatchewan and the Cardium core areas where the Company continued to achieve strong results.

TORC's disciplined approach and strong underlying assets continue to position the Company for long-term strategic growth.

Highlights in the first quarter of 2020 included the following: Achieved record quarterly production of 28,515 boepd, up from 28,378 boepd in the fourth quarter of 2019 and 28,267 boepd in the first quarter of 2019; Generated cash flow of $47.2 million relative to $74.0 million in the fourth quarter of 2019 and $76.1 million in the first quarter of 2019; Generated cash flow per share of $0.21 as compared to $0.33 in the fourth quarter of 2019 and $0.35 per share in the first quarter of 2019; Successfully drilled 33 (28.2 net) wells spending $65 million; During the first quarter, TORC paid dividends of $16.7 million of which $1.7 million was paid under the share dividend program. The share dividend program was indefinitely suspended following the January dividend; Successfully closed a $3 million tuck-in acquisition in the Company's southeast Saskatchewan core area at quarter-end adding over 200 boepd (greater than 90% light oil), of high netback, low decline assets with a high quality light oil drilling inventory; Net income for the first quarter was negatively impacted by the severe economic dislocation that has led to a significant decrease to current and forecasted crude oil prices. This resulted in a non-cash accounting charge of $853 million to net book value. Revisions to forecasted crude oil prices could result in reversals or additional impairment charges impacting net income; At quarter end, the Company's net debt was $382.7 million with $309.3 million drawn on the Company's $500 million credit facility and In March 2020, the World Health Organization declared COVID-19 to be a global pandemic. Global responses to combat the spread of COVID-19 have resulted in a sudden decline in economic activity and a significant decrease in global crude oil demand. In addition, global crude oil supply increased significantly due to a geopolitically driven crude oil price war. These events have resulted in an unprecedented decline in crude oil prices, creating an uncertain and volatile economic environment, adversely affecting the Company's operating results and financial position.

Forward Looking Statements

This press release contains forward looking statements and forward looking information (collectively 'forward looking information') within the meaning of applicable securities laws relating to the Company's plans, strategy, business model, focus, objectives and other aspects of TORC's anticipated future operations and financial, operating and drilling and development plans and results, including, expected future production and potential production curtailment, production mix, reserves, drilling inventory, net debt, cash flow and free cash flow, financial flexibility and liquidity, capital costs, operating netbacks, operational efficiencies, decline rate and decline profile, product mix, capital expenditure program, capital efficiencies, commodity prices, royalties, tax pools and future growth. In addition, and without limiting the generality of the foregoing, this press release contains forward looking information regarding: the focus and allocation of TORC's 2019 capital budget, anticipated average and exit production rates, available free cash flow, management's view of the characteristics and quality of the Company's assets and the opportunities available to the Company, COVID-19 response plans, future capital efficiencies and operating costs, expectations regarding the renewal of TORC's credit facility. TORC's dividend policy and plans, and other matters ancillary or incidental to the foregoing.

Forward looking information typically uses words such as 'anticipate', 'believe', 'project', 'target', 'guidance', 'expect', 'goal', 'plan', 'intend' or similar words suggesting future outcomes, statements that actions, events or conditions 'may', 'would', 'could' or 'will' be taken or occur in the future. The forward looking information is based on certain key expectations and assumptions made by TORC's management, including expectations concerning the impact (and the duration thereof) that the COVID-19 pandemic will have on the demand for crude oil, NGLs and natural gas, our supply chain, including our ability to obtain the equipment and services we require, and our operations, prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; capital efficiencies; decline rates; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; ability to market oil and natural gas successfully and TORC's ability to access capital

Statements relating to 'reserves' are also deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future.

Although the Company believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward looking information because TORC can give no assurance that they will prove to be correct. Since forward looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward looking information will transpire or occur, or if any of them do so, what benefits that the Company will derive there from. Management has included the above summary of assumptions and risks related to forward looking information provided in this press release in order to provide securityholders with a more complete perspective on TORC's future operations and such information may not be appropriate for other purposes.

These forward looking statements are made as of the date of this press release and TORC disclaims any intent or obligation to update publicly any forward looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Dividends

The payment and the amount of dividends declared in any month will be subject to the discretion of the board of directors and will depend on the board of director's assessment of TORC's outlook for growth, capital expenditure requirements, funds from operations, potential acquisition opportunities, debt position and other conditions that the board of directors may consider relevant at such future time. The amount of future cash dividends, if any, may also vary depending on a variety of factors, including fluctuations in commodity prices and differentials, production levels, capital expenditure requirements, debt service requirements, operating costs, royalty burdens and foreign exchange rates.

Non GAAP Measurements

This press release includes non-GAAP measures commonly used in the oil and natural gas industry. These non-GAAP measures do not have a standardized meaning prescribed by International Financial Reporting Standards ('IFRS', or alternatively, 'GAAP') and therefore may not be comparable with the calculation of similar measures by other companies.

'Adjusted funds flow, including transaction related costs' represents cash flow from operating activities prior to changes in non-cash operating working capital and settlement of decommissioning obligations. 'Adjusted funds flow, excluding transaction related costs' represents cash flow from operating activities prior to changes in non-cash operating working capital, settlement of decommissioning obligations and transaction related costs. Management considers these measures to be useful as they assist in the determination of the Company's ability to generate liquidity necessary to finance capital expenditures, settlement of decommissioning obligations and funding of its dividend. Transaction related costs are incurred during asset and/or corporate acquisitions and are typically not considered a cost incurred in the normal course of business. As a result, excluding transaction related costs from adjusted funds flow further assists in the determination of the Company's ability to generate liquidity in the normal course of business. For ease of readability, in this press release, 'adjusted funds flow, excluding transaction related costs' is also referred to as 'cash flow'. TORC calculates cash flow per share using the same method and shares outstanding that are used in the determination of earnings per share.

'Net debt' is calculated as current assets (excluding financial derivative assets) less: i) current liabilities (excluding financial derivative liabilities) and ii) bank debt. Management considers this measure to be useful in determining the Company's leverage.

'Operating netback' or 'netback' represents revenue and realized gain or loss on financial derivatives, less royalties, operating expenses and transportation expenses and has been presented on a per Boe basis. Management believes that in addition to net income, operating netback is a useful measure as it assists in the determination of the Company's operating performance and profitability.

'Exploration and development expenditures' represents expenditures on property, plant and equipment ('PP&E') excluding: acquisitions, non-cash PP&E additions and capitalized general and administrative expenses.

'Property acquisitions, net of dispositions' represents additions to PP&E related to the Company's asset and/or corporate acquisition and disposition activity.

'Free cash flow' represents adjusted funds flow, excluding transaction related costs, less i) exploration and development expenditures', and ii) cash dividends paid. Management considers this measure to be useful in determining its ability to finance capital expenditures and fund its dividend.

'Payout ratio' represents cash dividends paid, plus exploration and development expenditures, divided by adjusted funds flow, excluding transaction related costs. The Company considers this to be a key measure of sustainability.

Contact:

Jason J. Zabinsky

Tel: (403) 930-4120

Web: www.torcoil.com

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