Torque Agrees to Acquisition by Eurogas

Torque Energy Inc. (TSX VENTURE:TQE) has accepted, subject to receipt of a
favourable fairness opinion, an offer from Eurogas Corporation (TSX:EUG) whereby
Torque will become a wholly-owned subsidiary of Eurogas.


The transaction will be carried out on the basis that Torque shareholders will
receive, for each share of Torque held, either 0.5 Eurogas shares or, at the
shareholder's option, payment of $0.50. Shareholders in the United States of
America will only receive the cash payment.


The share for share exchange represents a 27.7% premium to Torque's closing
share price of $0.325 on April 28, 2011 (based on Eurogas' closing price of
$0.83 on that day) and a 43.8% premium to Torque's volume weighted share price
of $0.291 for the 20 days ending on April 28, 2011 (based on Eurogas' 20 day
volume weighted share price of $0.837 for the same period). The cash payment
represents a 53.8% premium to such closing share price for Torque and a 71.8%
premium to the 20 day volume weighted share price for Torque.


It is intended that the acquisition will be carried out by way of an
amalgamation of Torque with a subsidiary of Eurogas. The transaction is subject
to receipt of stock exchange and shareholder approvals.


Torque is listed on the TSX Venture Exchange under the symbol "TQE" and is
engaged in oil and gas operations in Ontario. The Company is currently working
on a number of Ontario oil and gas acquisitions. Torque successfully completed,
with its partner, the sale of the Dover East Storage Pool in June 2010
representing a total net compensation to Torque of $3.88 million, provided the
Pool is fully developed into natural gas storage. It is currently designing and
anticipates shooting a three-dimensional seismic program over its second natural
gas storage Pool prior to the third quarter of 2011.


Eurogas Corporation is listed on the Toronto Stock Exchange under the symbol
"EUG" and is engaged in oil and natural gas operations in Ontario and indirectly
in the development of a major underground storage facility off the east coast of
Spain. Torque understands that Eurogas would like to consolidate its petroleum
interests in Ontario to achieve various efficiencies and pursue other
exploration and business opportunities in the province.


Torque understands that Dundee Corporation currently owns approximately 54% of
Eurogas and 19% of Torque shares and, as a result, Dundee and certain associated
parties cannot vote their shares of Torque at the shareholder meeting that will
be called to approve this transaction.