Torque Energy Inc.
TSX VENTURE : TQE

Torque Energy Inc.

March 30, 2009 21:22 ET

Torque Energy Files Year End Disclosure Documents

LONDON, ONTARIO--(Marketwire - March 30, 2009) - Torque Energy Inc. ("the Company") (TSX VENTURE:TQE) today filed with Canadian securities authorities its audited consolidated financial statements and related Management's Discussion and Analysis for the year ended November 30, 2008 and the reports relating to reserves data and other oil and gas information as at November 30, 2008 pursuant to National Instrument 51-101 Standards of Disclosure for Oil & Gas Activities.

Operating highlights:

- Net profit increase of $0.09 per share

- 39% reduction in total bank indebtedness

- 86% increase in funds flow from operations

- 45% increase in field level cash flow

- 50% increase in operating netbacks

Total bank indebtedness at November 30, 2008 declined to $2,485,409 from $4,042,545 at November 30, 2007. The reduction of $1,557,136 was due to the cash provided by profitable operations.

Funds flow from operations increased 86% in 2008 to $2.4 million or $0.16 per share on a diluted basis from $1.3 million or $0.09 per share on a diluted basis for 2007.

The Company realized a profit of $1,683,415 ($0.12 per share) for the 12 months ended November 2008. Oil and gas revenues less royalties increased to $4,090,985 in 2008. The contributing factors for the increases can be attributed to higher commodity prices for both oil and gas throughout the year together with stable production volumes.

The Company produced an averaged of 148 BOE (barrels of oil equivalent) for the fiscal 2008 period compared to 153 BOE per day for the same period in 2007.

VON Resource Management Ltd. of Calgary, Alberta, independent petroleum consultants prepared a report dated March 20, 2009 in which VON evaluated the quantity of estimated future cash flow of the Company's total estimated proved and probable Canadian reserves effective November 30, 2008. Pursuant to National Instrument 51-101 Standards of Disclosure for Oil & Gas Activities, the Company has filed the Statement of Oil & Gas Reserves Data and other oil and gas information F51-101F1, F51-101F2 and F51-101F3 reports.

The Company's estimated gross proved reserves at November 30, 2008 were 830 MBOE (November 30, 2007 were 727 MBOE). The increase of 14% is due to positive revisions of 158 MBOE based on well performance taken into account during the decline curve analysis, and the addition of 4 wells that came on production during the year. Company gross probable additional reserves of 99 MBOE were also assigned to these producing properties for a Proved plus Probable (2P) total of 929 MBOE.

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. 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.

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)