Torque Energy Inc.

Torque Energy Inc.

June 22, 2010 10:26 ET

Torque Announces Closing of Dover East Field Natural Gas Storage Reservoir Sale to Union Gas Limited

LONDON, ONTARIO--(Marketwire - June 22, 2010) - Torque Energy Inc. (TSX VENTURE:TQE) is pleased to announce that it and Liberty Oil & Gas Ltd. have entered into the definitive Asset Purchase Agreement with Union Gas Limited and, pursuant thereto, closed the sale to Union of rights to develop new natural gas storage capacity in the Municipality of Chatham-Kent from Torque (as to 50%) and Liberty (as to 50%).

If the Ontario Energy Board approves all the reservoirs for designated storage, Torque could receive payments totalling $3.88 million over the next six to eight years. The first storage reservoir could be in service as early as July 2012 if the Ontario Energy Board's approval is obtained, as targeted, by the summer of 2011. If that occurs, Torque will have received, at the time of such approval, payments totalling $1.25 million.

So long as they do not jeopardize the integrity of the designated storage reservoir, Torque and Liberty retain the right to explore and drill for and produce petroleum substances from all new and certain existing wells and lands within the area.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Torque Energy Inc.
    Brian E. Bayley
    President and CEO
    604.681.4692 (FAX)
    Torque Energy Inc.
    David C. Nelms
    Chief Financial Officer
    519.433.7588 (FAX)