Terra Energy Corp.
TSX : TT

Terra Energy Corp.

June 19, 2009 18:55 ET

Terra Energy Announces Private Placement Fully Subscribed

CALGARY, ALBERTA--(Marketwire - June 19, 2009) - Terra Energy Corp. ("Terra Energy" or the "Company") (TSX:TT) is pleased to announce that the underwriters have, conditional upon the receipt of necessary Toronto Stock Exchange approvals, successfully closed the book on the previously announced offering (the "Offering") of subscription receipts of the Company ("Subscription Receipts") for a total of 14 million Subscription Receipts (including 7 million Subscription Receipts issued pursuant to the exercise, in full, of the option granted to the underwriters to increase the size of the Offering) at $1.45 per Subscription Receipt for anticipated gross proceeds of $20.3 million on closing of the Offering. The syndicate of underwriters is led by Acumen Capital Finance Partners Limited, and includes GMP Securities L.P. and Scotia Capital Inc.

The net proceeds of the Offering will be used by Terra Energy, in part, to fund the recently announced Peace River Arch acquisition upon its anticipated closing on or about July 15, 2009.

Each Subscription Receipt purchased under the Offering is exchangeable for one unit ("Unit") of the Company. Each Unit is comprised of one common share of the Company and one-half of one common share purchase warrant ("Warrant"). Each whole Warrant shall be exercisable into one common share of the Company at a price of $1.90 per common share for a period of 24 months from the closing date of the Offering.

The Offering is subject to applicable regulatory approvals and is anticipated to close on July 7, 2009.

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 Toronto Stock Exchange under the symbol 'TT'.

READER ADVISORY

This media release contains certain statements which constitute forward-looking statements or information, including completion of the Peace River Arch acquisition, the anticipated closing date and gross proceeds of the Offering and the receipt of applicable regulatory approvals. Although Terra Energy believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. Risks include, but are not limited to: the risks associated with the oil and gas industry (eg., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in more detail in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Terra Energy does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Contact Information

  • Terra Energy Corp.
    Dean N. Morrison, CFA
    Manager, Corporate Affairs
    (403) 699-7777