Toro Oil & Gas Ltd Announces Filing of Year-End Materials

CALGARY, ALBERTA -- (Marketwired) -- 04/27/15 -- Toro Oil & Gas Ltd. (TSX VENTURE: TOO) ("Toro" or the "Company") announces that it filed its financial and operating results for the fourth quarter and year ended December 31, 2014 with the Canadian Securities Administrators. The Company's financial statements, Management's Discussion & Analysis ("MD&A") and Annual Information Form ("AIF") can be found on the SEDAR website (www.sedar.com) or on the Company's website (www.torooil.com). Included in the AIF is the annual oil and gas disclosure of the Company as at December 31, 2014 required under National Instrument 51-101.

Message from the President

Fellow stakeholders, in my inaugural message to you, I would like to share the vision for our Company, our accomplishments to date and our insights as to the journey ahead. Since our inception on October 1, 2014, in the span of only six months amidst the turmoil of declining commodity prices and volatility of the energy equity markets, we have completed a number of important corporate activities which position the Company nicely to take advantage of a recovery in commodity prices and to achieve our vision. Our vision is to build, in a socially responsible manner through both acquisitions and organic growth, a concentrated light oil value focused company in the East Central Alberta and Southwest Saskatchewan Viking oil fairway generating top percentile rates of return for shareholders. Visions become reality through the dedication, knowledge and perseverance of a strong team. To position for success, Toro has assembled a team of highly skilled, experienced and motivated professionals with exceptional track records of building successful companies, stewarded by an experienced Board of Directors, all capable of building our Company into a sector leading, low cost Viking light oil player.

Some of our key accomplishments to date include:

--  Recapitalized Kallisto Energy Corp. ("Kallisto") on October 1, 2014 with
    $25 million in equity capital, of which approximately $10 million came
    from management and directors aligning the leadership team with all
    shareholders;

--  Kallisto provides Toro with a certain degree of stable, low decline
    production, a public entity framework and valuable tax pools, all of
    which are important to build the business;

--  Raised approximately $46 million of equity in total during the
    4thQuarter 2014 and January of this year, despite strong market and
    commodity headwinds for junior oil and gas companies, a reflection of
    the quality of the team and corporate strategy;

--  Closed a $25 million acquisition of the Hamilton Lake Viking Oil Unit
    plus non-Unit lands consisting of 60 net sections, 400 boe/d of
    production and an internally estimated 300 million barrels of original
    oil in place or OOIP (only 5% recovered to date), providing Toro with a
    core asset in the Alberta Viking fairway and a substantial low risk
    horizontal infill drilling inventory; and

--  Closed four additional acquisitions, bringing Toro's total land position
    to 122 net sections of 100% working interest lands in the East Central
    Alberta Viking oil prone fairway, all at very competitive acquisition
    metrics.

Our business model is keenly focused on the Viking light oil fairway for a number of key reasons:

--  The fairway is aerially extensive and provides Toro with both
    development and step-out growth opportunities;

--  Viking drilling is characterized by shallow 800-900 meter vertical
    depths where all-in horizontal well costs of less than $1 million allow
    for attractive drill and tie-in cycle times;

--  Strong capital efficiencies with attractive cash flow net backs
    associated with 34-36 degree API light sweet crude oil, and;

--  Optimization of production and increased recoveries through a
    combination of horizontal oil wells employing proven multi-stage
    completion techniques, in addition to waterflood schemes which are
    anticipated to increase recoveries in existing low-risk pools to upwards
    of 25 percent.

These main factors render the Viking oil fairway one of the most compelling economic plays in the western Canadian sedimentary basin.

As mentioned, our acquisition of the Hamilton Lake Viking Unit and surrounding lands gave us an immediate presence in the Viking horizon. Together with immediately adjacent tuck-in acquisitions to this unit, we now have over 79 sections of contiguous 100% owned and operated assets, including all of the gathering, processing and transportation infrastructure necessary to process up to 2,000 boe/d in this core area. Toro's Viking oil pool in Hamilton Lake has a long history of stable low decline oil production with a low current drill density of only 2 vertical oil wells per section on average. Horizontal infill wells drilled by the previous operator illustrate the infill potential of the pool under current modern low cost horizontal drilling and multi-stage completion techniques. Toro intends to commence drilling operations early in the second half of 2015 in Hamilton Lake and across our extensive asset base.

In addition to the Hamilton Lake assets, Toro has amassed an additional 43 net sections of land in the Consort and Esther areas of the Viking oil fairway, providing the Company with undeveloped low risk exploration upside. Horizontal drilling activity by operators immediately offsetting these assets is encouraging, offering upside potential to Toro and our shareholders.

In summary, 2014 and the first quarter of 2015 have proven to be a challenging yet rewarding time. We have concentrated on variables within our control and to that extent, in my opinion, we have done an exemplary job. Our disciplined, prudent approach to growth during this stage of the market cycle puts Toro in an enviable position to achieve the goals we have set for ourselves, our shareholders and for all stakeholders at large who share our vision. We look forward to communications in this regard over the coming months.

Outlook and Capital Budget

As previously disclosed, Toro deferred its 2015 drilling program until the second half of 2015, the size and pace of which will be determined taking into account commodity price visibility, drilling and service company costs and capital access. Management believes this prudent and disciplined approach during volatile and uncertain times in the commodity market is appropriate for a company of Toro's size. It is anticipated that flexibility in capital spending will allow Toro to take advantage of the recovery when it occurs. Until that time, Toro also intends to maintain its balance sheet strength with no debt, approximately $6 million dollars in cash and access to a $25 million credit facility, all of which are key distinguishing characteristics amongst Toro's peer group. Management believes Toro is well positioned to deliver solid financial results and create shareholder value.

About Toro Oil & Gas Ltd.

Toro is a junior oil and gas energy company listed on the TSX Venture Exchange. Toro's business plan focuses on light oil development and exploitation of known or existing reservoirs through the use of technology advancements. A core area for Toro is the Alberta-Saskatchewan Viking fairway. In addition, the Company continues to review other opportunities in the western Canadian sedimentary basin to expand its asset portfolio.

Forward-Looking Information

The reader is advised that some of the information contained herein may constitute forward-looking information within the meaning of National Instrument 51-102 and other relevant securities legislation. Forward-looking information contained herein includes, but is not limited to, statements with respect to Toro's vision, the characteristics of Toro's assets, the OOIP of Toro's assets, the liquidity and debt position of the Company, the anticipated timing of Toro's drilling program, the development strategy of the Company, the estimated production in respect of Toro's assets, and Toro's balance sheet. Such forward-looking information is based on the Company's current expectations regarding its future business and reflects management's current beliefs and assumptions based on information currently available to them. Actual results may vary from forward-looking information and readers are cautioned not to place undue reliance on forward-looking information. The forward-looking information contained in this press release is presented as of the date hereof and the Company does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information including risks associated with the impact of general economic conditions, industry conditions, governmental regulation, volatility of commodity prices, currency fluctuations, imprecision of reserve and resource estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the Company's ability to access sufficient capital from internal and external sources. Additional risks and uncertainties are described in the Company's Annual Information Form dated April 27, 2015 which is filed under the Company's SEDAR profile at www.sedar.com.

51-101 Advisory

In conformity with 51-101, natural gas volumes have been converted to barrels of oil equivalent ("boe") using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil. In certain circumstances, natural gas liquid volumes have been converted to a thousand cubic feet equivalent ("mcfe") on the basis of one barrel of natural gas liquids to six thousand cubic feet of gas. Boes and mcfes may be misleading, particularly if used in isolation. A conversion ratio of one barrel to six thousand cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion ratio on a 6:1 basis may be misleading as an indication of value.

Original Oil in Place (OOIP) is the equivalent to Discovered Petroleum Initially In Place (DPIIP) for the purposes of this press release. DPIIP is defined as that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. There is no certainty that it will be commercially viable to produce any portion of the resources. A recovery project cannot be defined for this volume of DPIIP at this time, and as such it cannot be further sub-categorized.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contacts:
Toro Oil & Gas Ltd.
Barry Olson
President and Chief Executive Officer
(403) 237-9996

Toro Oil & Gas Ltd.
Greg Phaneuf
Vice President, Finance and Chief Financial Officer
(403) 237-9996
www.torooil.com

Source: Toro Oil & Gas Ltd.

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