Torquay Oil Corp. (TRQYF)

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Torquay Oil Corp. Reports 2011 Second Quarter Results CALGARY, ALBERTA, August 26, 2011 – Torquay Oil Corp. (TSX-V: TOC.A &
TOC.B) ("Torquay" or the "Company") is pleased to announce that it has filed its unaudited financial statements and related Management’s Discussion and Analysis (“MD & A”) for the three and six months ended June 30, 2011. The Company’s unaudited financial statements and related MD & A are available for review at www.torquayoil.com or www.sedar.com.
Q2 Highlights
• Viewfield battery expansion was completed with the battery now capable of handling 5,000 bbls of fluid per day.
• Closed a $13,300,000 bought deal financing. • Produced an average of 330 boepd (94% light oil and liquids). • Achieved funds flow of $998,455.
Subsequent to June 30, 2011 Torquay:
• Drilled and completed one, 100% W.I., horizontal Bakken well at Lake Alma, SK. The Company has just begun evaluating the flow back of this well.
• Drilled and completed three, 100% W.I., horizontal Frobisher wells at Viewfield, SK.
Operations Update
Lake Alma, SE Saskatchewan
In the second quarter Torquay drilled and completed a horizontal Bakken well in the Lake Alma area. This well is currently being evaluated and the Company expects to release production data within the next 60 days.
The Company’s 3D seismic programs are proceeding on schedule. Torquay is on track to complete both programs by mid September. These programs will provide Torquay with approximately 200 square kilometers of proprietary 3D seismic data over its core Lake Alma area where the Company holds over 57,000 gross acres (55,000 net).
SE Saskatchewan
Along with many other operators in SE Saskatchewan, Torquay is still experiencing the effects of record spring rainfall. The weather delayed Torquay’s field operations at all areas outside of Lake Alma.
• Drilled and completed one, 100% W.I., Ratcliffe horizontal well at Lake Alma, SK. The well is
currently being evaluated.
• Sold producing property at Union Jack in southeast Saskatchewan for gross proceeds of
$1,500,000.
• Drilled one (1.0 net) Bakken horizontal well at Viewfield, SK. Completion operations are
scheduled for the first week of September.
• Drilled and completed one, 100% W.I., vertical well at Willmar, SK. The well is currently being
evaluated.
• Current production is averaging 325 boepd (97% light oil and liquids) with approximately 250
boepd of production currently being equipped for production.
However the Company has now begun lease construction and expects to start drilling at Midale and Alameda later in the third quarter.
Torquay’s drilling inventory continues to expand and the Company expects to drill between 12 and 15 additional locations through to the end of 2011. Torquay has also begun permitting a proprietary 3D seismic program at Rosebank, SK.
Financial Update
6,020,143 warrants that were issued in 2010 were exercised at $1.40 for gross proceeds of $8,428,200.