Terra Energy Corp.
TSX : TT

Terra Energy Corp.

December 15, 2009 17:10 ET

Terra Energy Completes Sale of Boundary Lake Unit Interests

CALGARY, ALBERTA--(Marketwire - Dec. 15, 2009) - Terra Energy Corp. (TSX:TT) ("Terra Energy" or the "Corporation") is pleased to announce that it has successfully completed the previously announced sale of its non-operated interests in the Boundary Lake Units 1 and 2 for gross proceeds of approximately $24 million, subject to post closing adjustments.

Under the terms of the sale, Terra Energy sold its 2.3515 percent unit interest in Boundary Lake Unit 1 and its 4.7129 percent unit interest in Boundary Lake Unit 2. Current unit interest production related to the sale is approximately 140 barrels of oil equivalent ("boe") per day with proved plus probable reserves of approximately 1.6 million boe resulting in deal metrics of more than $171,000 per flowing boe and $14.41 per boe of proved plus probable reserves.

The proceeds of the sale will lower the Corporation's overall net indebtedness, and will be available for redeployment for future development projects or acquisitions of reserves that are anticipated to provide higher levels of production and create incremental value for Terra Energy shareholders.

Terra Energy is a junior oil and gas company engaged in the exploration for, and development and production of both conventional and non-conventional natural gas and oil resources in Western Canada. Terra Energy's common shares trade on the Toronto Stock Exchange under the symbol 'TT'.

READER ADVISORY

All amounts in Canadian dollars unless otherwise specified

A boe conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency for the individual products at the wellhead. Such disclosure of boe's may be misleading, particularly if used in isolation.

This media release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including the lowering of net indebtedness and the Corporation's ability to redeploy the sale proceeds to fund future development projects or acquisitions of reserves that will provide higher levels of production and create incremental value for Terra Energy shareholders. 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 statements. As such, readers are cautioned not to place undue reliance on the forward-looking statements, 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
    Vice-President, Corporate Affairs
    (403) 699-7777