Mr. Michael Rose reports

TOURMALINE PROVIDES EP ACTIVITY UPDATE AND ANNOUNCES TWO ADDITIONAL LNG AGREEMENTS

Tourmaline Oil Corp. has provided an exploration and production activity update, and has signed two additional liquefied natural gas agreements.

EP activity update

Tourmaline exited 2023 with average daily production in excess of 600,000 barrels of oil equivalent per day, including over 150,000 barrels per day of average liquids production, and has continued at these production levels in January. The company is operating all 16 drilling rigs as planned in the first quarter 2024 EP program, and the planned 2024 capital program has minimal associated facility expenditures. Similar to 2023, Tourmaline plans to maximize free cash flow (1) in 2024. The company will closely monitor exploration and production expenditures (2) and the natural gas pricing environment throughout the year and adjust the EP program accordingly. Tourmaline has 724 million cubic feet per day of natural gas hedged at an average price of $5.28 per thousand cubic feet in 2024. The company has an average 959 MMcf/d of unhedged volumes exposed to the export markets in 2024, of which 61 per cent is exposed to premium priced markets such as the U.S. Gulf Coast, Western United States, JKM, TTF and Sumas. The company continues to believe in the strong North American natural gas outlook for the 2025 to 2030 time frame and will match planned growth with improving pricing.

Additional LNG agreements

Tourmaline is pleased to announce that it has increased its exposure to JKM by entering into a netback agreement with Trafigura Pte. Ltd. based on 62.5 million British thermal units per day of liquified natural gas (approximately 500 tonnes per year) for a seven-year term starting January, 2027, with the potential for extension to December, 2039.

Tourmaline has also expanded its international exposure to include a physical netback agreement with Trafigura Canada Ltd., which will receive Dutch TTF index pricing. Starting in March, 2024, Tourmaline will deliver 50,000 MMBtu/d of natural gas at AB-NIT and receive a Dutch TTF index price (less associated deductions) until December, 2026.

Financial update

Tourmaline plans to pay four quarterly special dividends in 2024 in addition to the quarterly base dividend of 28 cents per share, while also maintaining the net debt (3) to cash flow (4) target of between 0.25 and 0.35 times by year-end 2024. The company has determined to commence a process to sell the Duvernay assets, which were acquired pursuant to the acquisition of Bonavista Energy Corp., completed by the company in November, 2023.

(1) Free cash flow is a non-generally accepted accounting principle financial measure defined as cash flow less capital expenditures, excluding acquisitions and dispositions. Free cash flow is prior to dividend payments. See "Non-GAAP and other financial measures" in the company's most recently filed management's discussion and analysis for further information on the composition of and, where required, reconciliation of this measure.

(2) Exploration and production expenditures are defined as capital expenditures, excluding acquisitions, dispositions and other corporate expenditures. Capital expenditures are a non-GAAP financial measure. See "Non-GAAP and other financial measures" in the third quarter MD&A for further information on the composition of and, where required, reconciliation of this measure.

(3) Net debt is a capital management measure. See "Non-GAAP and other financial measures" in the Q3 MD&A for further information on the composition of and, where required, reconciliation of this measure.

(4) Cash flow is a non-GAAP financial measure defined as cash flow from operating activities adjusted for the change in non-cash working capital (deficit) and current income taxes. See "Non-GAAP and other financial measures" in the Q3 MD&A for further information on the composition of and, where required, reconciliation of this measure.

About Tourmaline Oil Corp.

Tourmaline is Canada's largest and most active natural gas producer dedicated to producing the lowest-emission and lowest-cost natural gas in North America. It is an investment-grade exploration and production company, providing strong and predictable operating and financial performance through the development of its three core areas in the Western Canadian sedimentary basin. With its existing large reserve base, decades-long drilling inventory, relentless focus on execution and cost management, and industry-leading environmental performance, it is excited to provide shareholders an excellent return on capital and an attractive source of income through its base dividend and surplus free cash flow distribution strategies.

We seek Safe Harbor.