Terra Energy Corp.

Terra Energy Corp.

May 30, 2006 21:00 ET

Terra Energy Announces Granting of Replacement Stock Options

CALGARY, ALBERTA--(CCNMatthews - May 30, 2006) - Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company") announces that in accordance with the Company's Stock Option Plan, it has granted 115,000 options to a director of the Company in order to replace options that have recently been exercised by the director at an exercise price of $1.51. The replacement options were granted on May 29, 2006 and have an exercise price of $2.05. This exercise price reflects the closing price of the Company's shares on May 29, 2006 on the TSX-V. These replacement options will retain their original expiration date of June 22, 2010. Accordingly, the total number of stock options granted under the Company's Stock Option Plan will remain unchanged, but the weighted average exercise price of all such options has been increased.

Terra Energy is a junior oil and gas company engaged in the exploration for, and development and production of, natural gas and oil in Western Canada. Terra Energy's common shares trade on The TSX Venture Exchange under the symbol 'TTR'.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Terra Energy Corp.
    Mr. Bud Love
    Vice-President of Finance and Chief Financial Officer
    (403) 699-7777