Torque Energy Inc.
TSX VENTURE : TQE

Torque Energy Inc.

October 30, 2009 09:43 ET

Torque Reports Third Quarter Financial Results & Provides Corporate Update

LONDON, ONTARIO--(Marketwire - Oct. 30, 2009) – Torque Energy Inc. (TSX VENTURE:TQE) today filed with Canadian securities authorities its unaudited consolidated financial statements and related Management's Discussion and Analysis for the nine month period ended August 31, 2009.

The Company realized a profit of $98,700 ($0.01 per share) for the three month period ended August 31, 2009 compared to a profit of $659,118 ($0.05 per share) for the same period in 2008. Funds flow from operations was $260,912 in Q3 2009 ($0.02 per share) versus $820,480 ($0.06 per share) in Q3 2008. Total oil and gas sales revenue less royalties decreased to $619,113 in Q3 2009 from $1,213,865 in Q3 2008, primarily due to lower oil and gas prices. Production sales of petroleum and natural gas in Q3 2009 averaged 149 barrels of oil equivalent per day (BOE/day, see footnote below) and realized an average gross price of $53.67/BOE. This compares to 138 BOE/day in Q3 2008 with an average price of $110.50/BOE, a decrease of 49% in the average price.

Operating, general and administrative and interest costs decreased to $375,453 in Q3 2009 from $394,407 in Q3 2008. This net decrease resulted primarily from lower interest and operating costs offset by an increase in labour related expenses. This decrease in operating costs resulted primarily as the Company recorded adjustments to previous estimates based upon reported actual expenses related to the Mikwan area.

Corporate acquisitions have allowed the Company to create an extensive proprietary exploration database within the southwestern Ontario portion of the Michigan geological basin. A number of prospects have been revealed and Torque is actively acquiring petroleum and natural gas and gas storage leases. This is proving to be a low cost, internally driven enhancement of the Company's assets.

The Company advises that John Thomson will not be returning to Torque at the end of his leave of absence. The Company wishes him well.

Copies of the filed documents may be accessed electronically through the SEDAR website at www.sedar.com.

BOE's may be misleading, particularly if used in isolation. The BOE conversion ratio of 6 Mcf: 1 bbl used by the Company is based on an energy equivalency conversion primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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
    604.689.1428
    604.681.4692 (FAX)
    or
    Torque Energy Inc.
    David C. Nelms
    Acting General Manager
    519.433.7710
    519.433.7588 (FAX)