The core of the Company's assets were acquired by a successful bid for various petroleum and natural gas assets of CanEnerco Limited, of London, Ontario. The bid was accepted by CanEnerco's Receiver-in-Bankruptcy, KPMG Inc., of Calgary, Alberta.

These assets combined with additional exploration and development activities since May of 2001 represent the current 129 BOE's per day of proven producing properties of the Company.

Three major producing properties represent 73% of the total daily production of the Company and are listed below.

Corey East Pool - 94.46% working interest, a Silurian reef with three producing oil and gas wells (net 26 boepd)

Petrolia East Pool - 100% working interest, another Silurian reef with four producing oil and gas wells (net 44 boepd)

Dover East Pool - 50% working interest, an Ordovician field which produces both gas and oil through seventeen producing wells (net 26 boepd)

In addition, the Company has an interest in seventeen producing wells at various locations in Southwestern Ontario which provide the balance of the Company's daily production. The Company continues to actively seek and pursue new exploration and development opportunities in Ontario.

Torque Energy Inc. (formerly Kinetic Energy Inc. and formerly Ella Resources Inc.) was formed by the amalgamation of Golden Lake Resources Ltd. ("Golden Lake") and Kestrel Resources Ltd. ("Kestrel") under the British Columbia Company Act on June 1, 1993. Each holder of one pre-amalgamation Golden Lake common share received 0.5 common shares of the amalgamated company and each holder of one Kestrel common share received 0.35 common shares of the amalgamated company. On January 25, 2001, Ella Resources Inc. changed its name to Kinetic Energy Inc. and on February 19, 2003, Kinetic Energy Inc. changed its name to Torque Energy Inc.

Golden Lake was incorporated under the name "Golden Chalice Explorations Ltd." under the British Columbia Company Act on February 10, 1984 by the filing of its Memorandum and Articles. On May 27, 1995 Golden Chalice changed its name to Golden Lake Resources Ltd.

Kestrel was incorporated under the name "Kestrel Marine Products Ltd." under the British Columbia Company Act on January 28, 1986 by the filing of its Memorandum and Articles. On January 15, 1987 Kestrel changed its name to Kestrel Resources Ltd.