Three months ended

Six months ended

(in thousands, except per share data)

June 30

2014

March 31

2014

June 30

2013

June 30

2014

June 30

2013

Financial

    Funds flow from operations, including

             transaction related costs/recovery ⁽¹⁾

$50,655

$47,207

$16,580

$97,862

$31,855

        Per share basic ⁽²⁾

$0.55

$0.52

$0.43

$1.07

$0.83

        Per share diluted ⁽²⁾

$0.53

$0.50

$0.42

$1.04

$0.81

    Funds flow from operations, excluding

             transaction related costs/recovery ⁽¹⁾

$50,735

$47,207

$16,397

$97,942

$31,580

        Per share basic ⁽²⁾

$0.55

$0.52

$0.42

$1.07

$0.82

        Per share diluted ⁽²⁾

$0.53

$0.50

$0.42

$1.04

$0.80

    Net income

$13,494

$8,029

$3,340

$21,523

$4,470

        Per share basic ⁽²⁾

$0.15

$0.09

$0.09

$0.23

$0.12

        Per share diluted ⁽²⁾

$0.14

$0.09

$0.09

$0.23

$0.11

    Exploration and development expenditures

$12,905

$37,740

$18,383

$50,645

$67,864

    Property acquisitions (dispositions), net

$70,617

($27)

($556)

$70,590

($324)

    Net debt ⁽³⁾

$181,169

$145,528

$2,088

$181,169

$2,088

    Common shares ⁽²⁾

        Shares outstanding, end of period

93,234

91,823

38,635

93,234

38,636

        Weighted average shares (basic)

92,126

91,620

38,621

91,868

38,604

        Weighted average shares (diluted)

95,015

94,159

39,068

94,352

39,476

Operations

    Production

        Crude oil (Bbls per day)

8,851

8,505

3,150

8,677

3,118

        NGL (Bbls per day)

476

419

213

449

210

        Natural gas (Mcf per day)

10,734

9,630

5,696

10,185

5,686

        Barrels of oil equivalent (Boepd, 6:1)

11,116

10,529

4,312

10,824

4,276

    Average realized price

        Crude oil ($ per Bbl)

$99.66

$93.90

$87.92

$96.85

$85.81

        NGL ($ per Bbl)

$55.82

$66.40

$48.91

$60.76

$53.74

        Natural gas ($ per Mcf)

$4.94

$5.54

$3.71

$5.22

$3.48

        Barrels of oil equivalent ($ per Boe, 6:1)

$86.51

$83.55

$71.65

$85.08

$69.96

    Operating netback per Boe (6:1) ($)

        Operating netback ⁽¹⁾

$54.37

$53.49

$46.35

$53.96

$44.99

        Operating netback (prior to hedging) ⁽¹⁾

$56.92

$55.00

$46.30

$56.00

$44.95

    Funds flow netback per Boe (6:1) ($)

        Including transaction related costs ⁽¹⁾

$50.08

$49.82

$42.25

$49.95

$41.15

        Excluding transaction related costs ⁽¹⁾

$50.15

$49.82

$42.25

$49.99

$40.80

    Wells drilled:

        Gross

4

13

4

17

13

        Net

2.8

8.5

4.0

11.3

9.6

        Success (%)

100

100

100

100

100

⁽¹⁾

Management uses these financial measures to analyze operating performance and leverage.  The definitions of these
measures are found in the Company's Management's Discussion and Analysis ("the MD&A") for the three and six months
ended June 30, 2014.  These measures do not have any standardized meaning prescribed by International Financial
Reporting Standards and therefore may not be comparable with the calculation of similar measures for other companies. 

⁽²⁾

In September 2013, the Company consolidated its outstanding common shares, stock options, incentive shares and warrants
on a 1 for 5 basis.  As a result, the number of outstanding common shares, stock options, incentive shares and warrants of
comparative periods have been reduced by a factor of five, in order for the comparative common share, stock options, incentive
shares, warrants, per share and per diluted share amounts to be equivalent.

⁽³⁾

Net debt is calculated as current assets (excluding financial derivative assets) less: i) current liabilities (excluding financial
derivative liabilities), ii) bank debt, and iii) non-current deferred lease incentives.

High Netback Production

2014E Avg: greater than 11,050 boepd (~85% light oil & NGLs)

2014E Exit: greater than 11,400 boepd (~85% light oil & NGLs)

Reserves ⁽¹⁾

Greater than 51 mmboe (81% light oil & NGLs) Total Proved plus Probable

Southeast Saskatchewan Light Oil Development Inventory

~150 net undrilled locations (<10% to be drilled in 2014)

~275 net undrilled locations (<10% to be drilled in 2014)

Emerging Light Oil Resource Exposure

Greater than 150 net sections at Monarch

Greater than 70 net sections of Three Forks/Torquay exposure

Sustainability Assumptions

Corporate decline ~25%

Light Oil Full Cycle Capital Efficiency ~$40,000/boepd (IP 365)

$45 per boe cash netback ($90 Edm light)

Run Rate Cash Flow ⁽²⁾

~$182 million (C$90 Edm), ~$210 (Current Commodities)

2014 Maintenance Capex

Percent of Cash Flow Required to

Maintain Production

Free Cash Flow for Growth

$114 million

63% (C$90 Edm), 54% (Current Commodities)

~$30 million (C$90 Edm), ~$60 million (Current Commodities)

Annual Dividend (paid monthly)

$0.54 per share

$50 million

$38 million (net of CPPIB share dividend participation)

Targeted Organic Growth

5-7% 

Targeted All-in-Payout Ratio

Less than 100%

Net Debt & Bank Line

Q2 net debt of $181 million

Bank line of $375 million

Debt/Cash Flow (run rate)

< 1.0x

Shares Outstanding

93.2 million (basic)

Tax Pools

Greater than $1 billion

Notes:

(1)

Company gross reserves being pro forma TORC's working interest share before deduction of royalties and without including any royalty interests
of pro forma TORC. Based on the independent reserve report, effective as of December 31, 2013, prepared by Sproule Associates Limited, and
TORC internal evaluations of the subsequent acquisitions, prepared by a qualified reserves evaluator in accordance with NI 51-101 and the COGE
Handbook.

(2)

Based on $4.00 AECO.  

Note regarding 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 and other aspects of TORC's 2014 capital budget, strategic objectives, anticipated future operations, dividend increases, financial, operating and production results, operational initiatives and the expected results, including expected 2014 average production, exit production, cash flow, netbacks, decline rates, net debt to cash flow, capital expenditure program, commodity pricing, dividends, targeted growth, tax pools and drilling and development plans and the timing thereof. In addition, and without limiting the generality of the foregoing, this press release contains forward-looking information regarding: the Company's objectives; the focus and allocation of TORC's 2014 capital budget; management's view of the characteristics and quality of TORC's assets, including the high quality, low-risk, light oil, high netback, development nature of TORC's properties, the magnitude of opportunities available to the Company on its assets, the production profile and decline rates on the Company's assets, the Company's exposure to large scale resource plays, the repeatability of operations and the drilling inventory available to the Company; production, growth, debt, dividend and payout ratio guidance for 2014; anticipated maintenance capital expenditures and growth capital expenditures in 2014; targeted growth rates; 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 and assumptions concerning 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.

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 Measures

This document contains the term "cash flow" and "netbacks", which do not have a standardized meaning prescribed by Canadian generally accepted accounting principles ("GAAP") and therefore may not be comparable with the calculation of similar measures by other companies. TORC uses cash flow and netbacks to analyze financial and operating performance. TORC feels these benchmarks are key measures of profitability and overall sustainability for TORC. Both of these terms are commonly used in the oil and gas industry. Cash flow and operating netbacks are not intended to represent operating profits nor should they be viewed as an alternative to cash flow provided by operating activities, net earnings or other measures of financial performance calculated in accordance with GAAP. Cash flows are calculated as cash flows from operating activities less changes in non-cash working capital. Netbacks are determined by deducting royalties, production expenses and transportation and selling expenses from oil and gas revenue. TORC calculates cash flow per share using the same method and shares outstanding that are used in the determination of earnings per share.

Information Regarding Disclosure on Oil and Gas Reserves and Operational Information:

Our oil and gas reserves statement for the year ended December 31, 2013, which includes complete disclosure of our oil and gas reserves and other oil and gas information in accordance with NI 51-101, is contained within our Annual Information Form which is available on our SEDAR profile by at www.sedar.com. The recovery and reserve estimates contained herein are estimates only and there is no guarantee that the estimated reserves will be recovered. In relation to the disclosure of estimates for individual properties, such estimates may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. The Company's belief that it will establish additional reserves over time with conversion of probable undeveloped reserves into proved reserves is a forward-looking statement and is based on certain assumptions and is subject to certain risks, as discussed above under the heading "Note regarding forward looking statements".

Meaning of Boe and Boepd

The term "BOE" or barrels of oil equivalent may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additionally, 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 of 6:1 may be misleading as an indication of value.

Initial Production Rates

Any references in this news release to initial production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue to produce and decline thereafter. Additionally, such rates may also include recovered  fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Initial production or test are not necessarily indicative of long-term performance of the relevant well or fields or of ultimate recovery of hydrocarbons.