Terra Energy Corp.

Terra Energy Corp.

May 17, 2006 18:31 ET

Terra Energy Announces Normal Course Issuer Bid

CALGARY, ALBERTA--(CCNMatthews - May 17, 2006) - Terra Energy Corp. (TSX VENTURE:TTR) (the "Corporation") today announced the TSX Venture Exchange has accepted its Notice of Intention to Make a Normal Course Issuer Bid (the "2006 Issuer Bid"). Under the terms of the 2006 Issuer Bid, the Corporation is authorized to buy back, for cancellation, up to 5,000,000 of its issued and outstanding common shares, which is approximately 10% of the public float of the common shares outstanding as of May 17, 2006. Any common shares acquired by the Corporation under the 2006 Issuer Bid will be cancelled. Although the Corporation has a present intention to acquire common shares, it is not obligated to make any purchases pursuant to the 2006 Issuer Bid.

The 2006 Issuer Bid will commence on May 17, 2006 and will end on May 17, 2007.

All purchases will be effected at market prices through the facilities of the TSX Venture Exchange. The Corporation believes the purchase of its common shares represents an appropriate use of funds because the market price of its common shares represents a significant discount to the fair value of such shares. The purchase of and payment for the common shares will be made by Union Securities Ltd. on behalf of the Corporation in accordance with the policies and rules of the TSX Venture Exchange. Shareholders may obtain a copy of the 2006 Issuer Bid, without charge, by contacting the Corporation.

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'.

Certain information set forth in this media release contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Terra Energy 's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Terra Energy 's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward looking statements will transpire or occur, or any of them do so what benefits Terra Energy will derive there from. Terra Energy disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange neither approves nor disapproves of the contents of this media release.

Contact Information

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