Toscana Energy Announces 2016 Reserves CALGARY,

CALGARY, Alberta, Feb. 22, 2017 (GLOBE NEWSWIRE) -- Toscana Energy Income Corporation ("TEI" or the "Corporation") (TSX: TEI ) announces the Corporation’s 2016 year-end reserves.

2016 Highlights

1. Continued to grow its high quality, long life, low decline asset base with forecast decline of 7%.
2. Excluding dispositions, increased total Proved plus Probable reserves by approximately 7%.
3. Proved Developed Producing reserves represent approximately 90% of Proved Reserves.
4. Proved reserves represent approximately 72% of Proved plus Probable Reserves with $10 MM of future development capital to capture Probable reserves upside.
5. 18% reduction in forecast operating costs.
6. Net Asset Value per share on a Proved basis is  $4.94 /share  and $8.76 /share on a Proved plus Probable basis. Note : Net Asset Value calculated using estimated net debt at December 31, 2016

Corporate Reserves:

The reserves data set forth below is based upon independent reserve assessments and evaluations prepared by:

• Sproule Associates Limited (“Sproule”) dated February 22, 2017 with an effective date of December 31, 2016;
• GLJ Petroleum Consultants (“GLJ”) dated January 25, 2017 with an effective date of December 31, 2016; and
• McDaniel and Associates Consultants Ltd. (“McDaniel”) dated February 21, 2017 with an effective date of December 31, 2016 (together referred to as the “ Reserve Reports ”).

The following tables summarize the Corporation’s crude oil, natural gas liquids and natural gas reserves and the net present values before income taxes of future net revenue for the Corporation’s reserves using forecast prices and costs based on the Reserve Reports. The Reserve Reports have been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") and the reserve definitions contained in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101).

All evaluations and reviews of future net revenues are stated prior to any provisions for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein for the fiscal year ended 2016.

Reserves Summary

The Corporation’s total proved plus probable reserves (including royalty interests) decreased by 5.7% in fiscal 2016 to 9,828 Mboe. Proved reserves decreased by 5.6% to 7,048 Mboe. Excluding the effect of dispositions, total proved plus probable reserves (including royalty interests) increased by 6.8% and proved reserves increased by 6.5%.

Proved reserves comprised 72% of the Corporation’s total proved plus probable reserves at December 31, 2016. The Corporation had 319 Mboe of proved undeveloped reserves (including royalty interests) at December 31, 2016, representing 3.2% of total proved and probable reserves and 4.5% of total proved reserves.

The future capital expenditures assumed in the Reserve Reports (undiscounted) is $10.0 million for the proved and probable reserves and $5.4 million for total proved reserves.

The following tables provide summary reserve information based upon the Reserve Reports and using published price forecasts used by each of Sproule, GLJ and McDaniel.

Notes:

1. “Net” reserves means the Corporation’s working interest (operated and non-operated) share after deduction of royalty obligations, plus the Corporation’s royalty interest in reserves.
2. Due to rounding, certain totals may not be consistent from one table to the next.

Note:

1. “Company Interest” reserves means the Corporation’s working interest (operating and non-operating) share before deduction of royalties and including royalty interests of the Corporation.

Reserves Values

The estimated before tax net present value of future net revenues associated with the Corporation’s reserves effective December 31, 2016 and based on the published future price forecasts are summarized in the following table:

Notes: (1) The estimated future net revenues are stated after deducting future estimated site restoration costs and are reduced for estimated future abandonment costs and estimated capital for future development associated with the reserves. (2) The net present value of future revenues does not represent fair market value.

BOE Equivalency

Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 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. Given 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 Mcf: 1 bbl, utilizing a conversion ratio of 6 Mcf: 1 bbl may be a misleading indication of value.

Oil and Gas Advisory

The reserves information contained in this news release have been prepared in accordance with NI 51-101. Complete NI 51-101 reserves disclosure will be included in our Annual Information Form for the year ended December 31, 2015. Listed below are cautionary statements applicable to our reserves information that are specifically required by NI 51-101:

Individual properties may not reflect the same confidence level as estimates of reserves for all properties due to the effects of aggregation.

With respect to finding and development costs, the aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year.

This press release contains estimates of the net present value of our future net revenue from our reserves. Such amounts do not represent the fair market value of our reserves.

Reserves included herein are stated on a company interest basis (before royalty burdens and including royalty interests) unless noted otherwise as well as on a gross and net basis as defined in NI 51-101. "Company interest" is not a term defined by NI 51-101 and as such the estimates of Company interest reserves herein may not be comparable to estimates of “gross” reserves prepared in accordance with NI 51-101 or to other issuers' estimates of company interest reserves.

Non-IFRS measures:

Management uses “net asset value”, “netback”, “funds flow from operations prior to performance fee internalization”, “funds flow from operations”,  “unused portion of credit facility”, “credit facility utilization” and “credit facility availability” to analyze operating performance and to determine the Corporation’s ability to fund future capital investment.  These terms, as presented, do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and therefore may not be comparable with the calculation of similar measures for other entities. Readers are cautioned regarding the reliability of such measures.

Forward-Looking Statements:

This news release contains forward ‐ looking statements and forward ‐ looking information within the meaning of applicable securities laws. These statements relate to future events or future performance.  All statements other than statements of historical fact may be forward ‐ looking statements or information.  Forward ‐ looking statements and information are often, but not always, identified by the use of words such as "appear", "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions.

More particularly and without limitation, this news release contains forward ‐ looking statements and information concerning the Corporation's petroleum and natural gas production and reserves. The forward ‐ looking statements and information are based on certain key expectations and assumptions made by management of the Corporation, including expectations and assumptions concerning well production rates and reserve volumes; project development and overall business strategy. Although management of the Corporation believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward ‐ looking statements and information since no assurance can be given that they will prove to be correct.

Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Corporation relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward ‐ looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions and failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws, royalties and environmental regulations. Accordingly, readers should not place undue reliance on the forward ‐ looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.

The forward ‐ looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward ‐ looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the Toronto Stock Exchange (“TSX”).  The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

About Toscana Energy Income Corporation

Toscana Energy Income Corporation is a conventional oil and gas producer with the mandate to acquire high quality, long life oil and gas assets including royalties, non-operated working interests and unitized production for yield and capital appreciation. Toscana Energy Income Corporation is managed by Sprott Toscana through Toscana Energy Corporation. Sprott Toscana is a member of the Sprott Group of Companies.

For further information, please visit our website at www.sprott-toscana.com or contact: Joseph S. Durante, Chief Executive Officer Tel: (403) 410-6793 Fax: (403) 444-0090 E-Mail: jdurante@sprott-toscana.com