Torque Energy Inc.

Torque Energy Inc.

October 25, 2010 16:29 ET

Torque Energy Announces Union Gas Limited Will Proceed With Its Plans to Develop the Jacob Storage Pool in the Dover East Field Ontario

LONDON, ONTARIO--(Marketwire - Oct. 25, 2010) - Torque Energy Inc. (TSX VENTURE:TQE) is pleased to announce that on October 20, 2010, Torque and Liberty Oil & Gas Ltd. ("Liberty") received notice from Union Gas Limited that Union will be proceeding with plans to develop the POD#34 Reservoir under the terms of the Storage Development and Production Agreement signed June 17, 2010. Union has named the proposed development of the POD#34 Reservoir the "Jacob Storage Pool". Union also stated that it is in the process of preparing to file an application to the Ontario Energy Board to have this pool designated as a storage area.

In connection with this Agreement, Torque should receive its next milestone payment from Union on January 15, 2011 in the amount of $527,450.00. If the Ontario Energy Board's approval is obtained as targeted by the summer of 2011, the first storage reservoir could be in service as early as July 2012. At the time of such approval, Torque will have received milestone payments totalling $1.25 million.

If the Ontario Energy Board approves all the proposed reservoirs for designated storage, Torque could receive payments totalling $3.88 million over the next six to eight years.

Provided Torque and Liberty do not jeopardize the integrity of the designated storage reservoir, the right to explore, drill for and produce petroleum substances from all new and certain existing wells within the Dover East field is retained by them.

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)