TUS - Tuscanny Energy Ltd. (TSX-V)

CALGARY, ALBERTA--(Marketwire - May 18, 2012) - Tuscany Energy Ltd. (TSX VENTURE:TUS) ("Tuscany" or the "Company") is pleased to report that for the three months ended March 31, 2012, it more than doubled oil production, revenues and cash flow from operations, as compared with the same period in the prior year.

Average production rates for the first quarter of 370 BOEd were the highest achieved by the Company, to date. Revenues increased to $2.2 million from $989,000 in Q1 2011. Ninety eight percent of these revenues were derived from oil production.

Cash flow increased to $1.1 million from $400,000 in Q1 2011. The Company ended the quarter with no debt.

The key to Tuscany's current growth is the success of the three recently drilled horizontal oil wells at Macklin, Saskatchewan. The three wells have been on production since late March 2012 and each well is currently producing heavy oil at rates between 90 bopd and 120 bopd. Based on the Company's interpretation of 3D seismic and well information, Tuscany anticipates that at least ten additional wells can be drilled in this pool. The next of the development wells should commence following breakup.

Financial

For the quarter, Tuscany's revenues net of royalties increased 126% to $2.2 million compared with $989,000 in the prior year. Cash flows from operations increased 168% to $1.2 million compared with $429,000 in Q1 2011. Net earnings increased to $86,000 compared with a net loss of $300,000 in Q1 2011.

Tuscany incurred $2.4 million of capital expenditures during the quarter compared with $397,000 for Q1 2011. Capital expenditures for the quarter were financed from cash flow from operations and the proceeds from sales of Magnum Hunter shares. At March 31, 2012, Tuscany had working capital of $549,000 compared with net debt of $447,000 at the beginning of the year.

Tuscany sold 326,195 shares of Magnum Hunter during the quarter for net proceeds of $2.2 million. Subsequent to the end of the quarter, Tuscany sold the remaining 100,000 shares of its investment for net proceeds of $595,700.

Outlook

Tuscany expects WTI oil prices to remain above $90 per barrel through the balance of 2012, as demand for oil continues to be strong. Using current heavy oil discounts, this should result in the Company realizing average prices for its heavy oil production in excess of $65 per barrel for the remainder of the year. At this price the Company believes continued development of the Company's heavy oil projects have very positive economics.

Tuscany is focused on growth through oil exploration and development. Tuscany believes it can currently achieve growth by continuing to develop its Dina oil properties at Macklin and Evesham, from working capital and operating cash flows, while minimizing the reliance on bank debt to finance future capital expenditures.

Longer term growth will result from development of new production and reserves from Tuscany's additional heavy oil prospects, developed over the past three years.

CALGARY, ALBERTA--(Marketwire - Aug. 16, 2012) - Tuscany Energy Ltd. (TSX VENTURE:TUS) ("Tuscany" or the "Company") announces that it has filed on SEDAR its Interim Financial Statements and MD&A for the six months ended June 30, 2012.

For the six months ended June 30, 2012, oil production increased to 368 BOEd from 167 BOEd for the same period in 2011. Revenues increased to $4.1 million from $1.9 million and cash flow from operations increased to $1.7 million from $665,000 in 2011. The Company also reported no debt at the end of the period.

Operations

In Q1 2012 Tuscany completed a three well drilling program at Macklin, Saskatchewan and placed the wells on production at the end of the quarter. The wells produced at an average rate of 75 bopd (41 bopd net to Tuscany) during Q2 2012 and have subsequently declined to 35 bopd (20 bopd net to Tuscany). This increased the number of horizontal heavy oil wells that the Company has drilled in Saskatchewan to 18 wells in total, with 12 wells at Evesham and 6 wells at Macklin.

During Q2 2012 Tuscany commenced a program to increase the water handling facilities and disposal capacity at both Evesham and Macklin. This included deepening and re-completing existing wells for increased disposal capacity and installing pipelines to handle increased volumes of water.

The Company plans to significantly increase the total fluid production from producing wells which we believe will increase total oil production.

Additional drilling in the area will be delayed until the increased water handling capacity has been completed.

Financial

For the quarter, Tuscany's revenues net of royalties increased 119% to $1.9 million compared with $861,000 in the prior year. For the six month period, revenues increased to $4.1 million from $1.9 compared with the same period in the prior year. Cash flow from operations for Q2 2012 increased 151% to $549,000 compared with $236,000 in Q2 2011. For the six month period, cash flow from operations increased to $1.7 million from $665,000.

Tuscany incurred $729,000 of capital expenditures during the quarter compared with $1.2 million for Q2 2011. For the sixth month period, capital spending was $3.1 million compared with $1.6 million for the same period in the prior year. Capital expenditures for the three and six month periods ended June 30, 2012, were financed from cash flow from operations and the proceeds from sales of Magnum Hunter shares.

At June 30, 2012, Tuscany had working capital of $461,000 compared with net debt of $447,000 at the beginning of the year. The Company also had access to a credit facility of $8.5 million, which was undrawn.

Tuscany's sale of its remaining 426,195 shares of Magnum Hunter during March and April 2012 resulted in a taxable gain on the disposition. The Company estimates a tax payable on the gains of $454,000.

Outlook

Despite WTI oil prices that dipped close to $80 per barrel as recently as June, Tuscany expects WTI oil prices to remain above $90 per barrel through the balance of 2012, as demand for oil continues to be strong and distribution bottlenecks at Cushing, Oklahoma, appear to have been alleviated with the reversal of the Seaway Pipeline. The Seaway Pipeline now allows oil to be delivered from Cushing to the US Gulf Coast. Using current heavy oil discounts, this should result in the Company realizing average prices for its heavy oil production in excess of $60 per barrel for the remainder of the year. At this price the Company believes continued development of Tuscany's heavy oil projects have very positive economics.

Tuscany is focused on growth through oil exploration and development. Tuscany believes it can currently achieve growth by continuing to develop its Dina oil properties at Macklin and Evesham, from working capital and operating cash flows, while minimizing the reliance on bank debt to finance future capital expenditures.

Longer term growth will result from development of new production and reserves from Tuscany's additional heavy oil prospects, developed over the past three years.

-------------------------------------

Not much movement in the share price and low volume...dog days of summer...maybe okay for mad dogs and englishmen