Torque Energy Inc.
TSX VENTURE : TQE

Torque Energy Inc.

March 30, 2011 16:47 ET

Torque Energy Files Year End Disclosure Documents

LONDON, ONTARIO--(Marketwire - March 30, 2011) - Torque Energy Inc. (TSX VENTURE:TQE) ("the Company") today filed with Canadian securities authorities its audited financial statements and related Management's Discussion and Analysis for the year ended November 30, 2010 and the reports relating to reserves data and other oil and gas information as at November 30, 2010.

Operating highlights: November 30, 2010
Net income $542,146 or $0.04 per share
Bank indebtedness $1.5 million, 31% reduction
Net asset value (NAV) $15,069,235 or $1.09 per share
 
Note: The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The term NAV is defined as Net Present Value of future cash flow from proved reserves discounted at ten percent plus accounts receivable and minus bank indebtedness and minus accounts payable and accrued liabilities.

The Company realized a profit of $542,146 on revenues of $2,934,690 for the twelve months ended November 30, 2010 compared to a profit of $333,315 on revenues of $2,763,803 in 2009. Throughout 2010, the Company reinvested approximately $822,000 in capital projects to further develop its resource prospects in the southwestern Ontario basin.

During the year, the Company successfully closed the sale of the Dover East Field natural gas storage reservoir to Union Gas. The proceeds to date from this transaction amount to approximately $696,000 and have contributed to the Company reducing its bank indebtedness.

VON Resource Management Ltd. Of Calgary, Alberta, independent petroleum consultants prepared a report dated March 20, 2011 in which VON evaluated the quantity of reserves and the value of estimated future cash flow of the Company's total estimated Canadian reserves effective November 30, 2010 as follows:

  Escalated Cdn. $
  Working Interest Company Reserves   Working Interest Company Reserves net of Royalties   Net Present Value of Net Cash Flow (pre-tax)
  Oil Gas   Oil Gas        
  MSTB MMCF   MSTB MMCF   0% 10% 15%
Proved Producing 538 1,138   464 977   46,235 16,372 12,539
Total Proved ** 538 1,207   464 1,038   46,149 16,288 12,454
Proved plus Probable (2P) ** 649 1,333   561 1,141   60,078 18,073 13,472
 
** Includes abandonment and reclamation liability net of salvage value for the Company's non-producing wells.

Copies of the filed documents may be accessed electronically through the SEDAR website at www.sedar.com and the Company's website www.torqueenergy.com.

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
    Chief Financial Officer
    519.433.7710
    519.433.7588 (FAX)
    www.torqueenergy.com