Terra Energy Corp.
TSX : TT

Terra Energy Corp.

April 06, 2010 09:20 ET

Terra Energy Announces Results of Two Successful Horizontal Wells in the Groundbirch Area of Northeast British Columbia

CALGARY, ALBERTA--(Marketwire - April 6, 2010) - Terra Energy Corp. (TSX:TT) ("Terra Energy" or the "Company") is pleased to announce the results of two successful horizontal wells in the Groundbirch area of British Columbia. Terra Energy has varying interests in a 14 section block of contiguous land, with interests ranging from a 2.5 % Gross Overriding Royalty interest to a 100 % working interest. Predominantly, the Company has a 25 % working interest in the Montney rights. An industry partner is the Operator of 12 of these sections of land. 

Two horizontal wells have recently been drilled on this block of land, including the Monterey et al Groundbirch Hz 13-27-80-21 W6M (the "13-27 well") and the Monterey et al Groundbirch Hz 2-21-80-21W6M (the "2-21 well"). The Company owns and has participated in a 25 % working interest in the 13-27 well. The 2-21 well was the subject of a "single earning well" farm-out arrangement with the Company's predecessor in-interest, where the farmee was drilling and completing a horizontal well targeting the Montney formation to earn farmor's 25 % working interest therein, subject to a non-convertible Gross Overriding Royalty of ten (10 %) percent on such working interest, or 2.5 % on total production. Recently, completion operations have been conducted on these two wells.

Fracture stimulation operations were commenced March 19, 2010 on the two horizontal wells by the industry partner. The 1,600 meter horizontal leg at the 13-27 well was fracture stimulated in six separate stages plus the initial toe frac utilizing slick water limited entry multi-stage fracture technology. The 13-27 well was flow tested up 4-1/2 inch casing and had a measured natural gas rate of approximately 6.0 million cubic feet per day ("mmcf/d") with a flowing wellhead pressure of 450 pounds per square inch after 48 hours of continuous production testing. The 13-27 well was still producing significant frac fluid at over 50 barrels per hour ("bbls/hr") at the end of the 48 hour flow period and is now shut-in for pressure buildup and analysis.

The second horizontal well completed was the 2-21 well. The 1,600 meter horizontal leg was also fracture stimulated in six separate stages plus the initial toe frac utilizing slick water limited entry multi-stage fracture technology. The 2-21 well was flow tested up 4-1/2 inch casing and had a measured natural gas rate of approximately 7.0 mmcf/d, a flowing wellhead pressure of 520 psi and 60 bbls/hr of frac fluid after 34 hours of continuous production testing. With comparable results to the 13-27 well and deteriorating surface access conditions due to spring breakup, the 2-21 well was shut in for pressure build up and all completion equipment, frac fluids and test equipment is currently being removed from both locations.

Terra Energy is also in the process of carrying out various drilling and completions operations on its Altares property, where the Company owns a 100% working interest in 17 sections of land. Reports on progress at the Altares property will necessarily be released at some time following the lifting of road bans in the area.

READER ADVISORY

This media release may contain forward-looking statements and information ("forward-looking statements") including statements regarding expectations of future development drilling and completion. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These 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. Additional information on these and other factors that could affect Terra Energy's operations or financial results are included in Terra Energy's reports on file with Canadian securities regulatory authorities. 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. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed 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.

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'.

Contact Information

  • Terra Energy Corp.
    Mr. Bud Love
    Vice President, Finance & Chief Financial Officer
    403 699 7777