Twoco Petroleums Ltd. provides an update of its 2011 activities and financial and operating results for the quarter ended September 30, 2011.

Twoco has filed the following documents on the System for Electronic Document Analysis and Retrieval:

1.Unaudited condensed interim financial statements as at and for the quarter ended September 30, 2011, together with the notes therein as prepared in accordance with International Financial Reporting Standards; and

2.Management's discussion and analysis of financial condition and results of operations as at and for the quarter ended September 30, 2011.

Highlights of operations for the year to date include:

Current production of 675 boe per day;

In November 2011, Twoco completed the drilling of 1 gross quad-leg horizontal oil well on the Company's Sparky heavy oil property. It is anticipated that this well will commence production prior to year end;

Twoco estimates current shut-in and behind pipe production capability of 175 boe per day. This estimate does not include the potential production from the 1gross quad-leg horizontal oil well currently being completed and equipped for production;

In July 2011, Twoco completed the drilling and completion of 2 gross tri-leg horizontal oil wells on the Company's Sparky heavy oil property. These wells commenced production in late August 2011;

On May 5, 2011, Twoco received approval from the Energy Resources Conservation Board which amended the drilling spacing on the Company's Sparky heavy oil property to allow for the drilling of up to 8 horizontal lateral legs per pool per quarter section. As a result of the ERCB's approval, Twoco has identified drilling locations for an additional 116 horizontal laterals on the Company's lands; and

In April 2011, Twoco acquired the mineral rights to an additional 640 gross acres on the Company's Sparky heavy oil property in the Warspite area of Alberta.

Highlights of the Third Quarter 2011 include:

Average production of 613 boe per day - a 9% decrease from the Third Quarter 2010 - a result of shut-in volumes due to low natural gas prices, a lack of natural gas drilling activity and natural production declines of the Company's natural gas properties. In the Third Quarter 2010, Twoco had no oil and natural gas liquids production;

Petroleum and natural gas sales revenue of $1,434,310 - a 24% increase from the Third Quarter 2010 - due to the 4 horizontal oil wells drilled on the Company's Sparky heavy oil property in the Warspite area of Alberta;

Cash flow from operations of $248,796 versus cash flow used by operations of $23,961 in the Third Quarter 2010;

Operating netback of $688,426

Net loss of $626,290

Capital expenditures of $1,678,983;

Current land position of 109,544 gross acres;

Operating costs of $12.28 per boe;

General and administrative expenses of $2.41 per boe;

In July 2011, Twoco completed the drilling and completion of two tri-leg horizontal oil wells on the Company's Sparky heavy oil property in the Warspite area of Alberta. These wells commenced production in late August 2011; and

On October 3, 2011, the Company announced the issuance of 375,871 common shares in payment of interest accrued to September 30, 2011 on its $3.4 million principal amount of redeemable, convertible, unsecured 8% debentures.

Tags: Twoco Petroleums Ltd.