Torque Energy Inc.

Torque Energy Inc.

January 17, 2011 16:50 ET

Torque Announces Receipt of Milestone Payment From Union Gas

LONDON, ONTARIO--(Marketwire - Jan. 17, 2011) - Torque Energy Inc. (TSX VENTURE:TQE) is pleased to announce the receipt of its first milestone payment in the amount of $527,450 from Union Gas pursuant to the definitive Asset Purchase Agreement for the Dover East field natural gas storage reservoir previously announced on June 21, 2010.

Union Gas has named this first reservoir as the Jacob Storage Pool and is currently preparing an application to the Ontario Energy Board to have it designated and approved as a storage area. A decision from the Ontario Energy Board is anticipated by the end of the third quarter of 2011. Upon approval, Torque will receive its second milestone payment in the amount of approximately $560,000 and will have then received milestone payments totalling approximately $1.3 million.

If the Ontario Energy Board approves all the reservoirs identified in the Definitive Asset Purchase Agreement as designated storage areas the Company will receive approximately $3.88 million during the next two to seven years.

Torque continues to execute its strategy of raising internally generated funds from its existing base of producing assets and assessing the viability of various depleted assets to function as commercial gas storage reservoirs. The Company will employ these funds to further reduce debt and supplement the financing of its future exploration capital budget requirements. As previously reported Torque has conducted geophysical assessments of new and reprocessed data that has identified a number of exploration and development opportunities leading to a modest 3 to 5 well drilling program planned for the third and fourth quarters of 2011.

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)