TORC Oil & Gas Ltd. reiterated capital budget and production guidance for the year 2015. The company announced acquisition of light oil and liquids weighted assets in southeast Saskatchewan. Following the closing of the acquisition, the company intends to maintain the previously announced 2015 budget of $125 million, which the company estimates will result in a go-forward payout ratio of approximately 100% at current strip pricing.

Pro forma the acquisition, the capital budget will be reallocated to include the drilling of a number of high quality locations on the acquired assets that the company believes are highly economic in the current oil price environment. The addition of these locations is expected to improve the company's overall estimated normalized corporate capital efficiency to approximately $37,000 per boe per day from $38,000 per boe a day. The company's net debt, pro forma the acquisition, is estimated to be approximately $275 million on an anticipated pro forma bank line of $550 million positioning TORC with financial flexibility and a strong balance sheet.

The company anticipates that the 2015 budget, pro forma the acquisition, will now result in 2015 average production of greater than 15,400 boe per day (88% light oil and liquids), with an exit rate of greater than 18,200 boe a day (89% light oil and liquids).