Terra Energy Corp.
TSX : TT

Terra Energy Corp.

June 19, 2009 09:27 ET

Terra Energy Closes Tecton Energy Canada Acquisition

CALGARY, ALBERTA--(Marketwire - June 19, 2009) - Terra Energy Corp. (TSX:TT) ("Terra Energy" or the "Company") is pleased to announce the closing of our previously announced acquisition of Tecton Energy Canada ULC ("Tecton"). The acquisition was completed for a purchase price of approximately $8 million comprised of $4 million cash and 2,580,645 common shares of the Company priced at $1.55 per share.

This strategic acquisition further solidifies Terra Energy's strong position in the Fort St. John area of British Columbia. The assets acquired consist primarily of 140 gross (71 net) sections of petroleum and natural gas mineral rights located adjacent to or proximal to lands owned by Terra Energy in the immediate vicinity of Fort St. John. The mineral rights cover approximately 89,910 gross (46,011 net) acres, with Montney rights throughout and many sections in which all mineral rights are included from surface to basement.

Completion of this acquisition presents the Company with numerous development opportunities having multi-zone potential from various formations including the Baldonnel, Charlie Lake, Halfway, Doig, Montney, Belloy and Kiskatinaw. Such development opportunities will serve to further ensure the Company's significant infrastructure and facilities in the region remain fully utilized for the foreseeable future.

READER ADVISORY

This media release contains certain statements which constitute forward-looking statements or information, including development potential and the positioning of the Corporation for future growth, development and value creation and utilization of infrastructure and facilities. 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.

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.
    Dean N. Morrison, CFA
    Manager, Corporate Affairs
    (403) 699-7769