Terra Energy Corp.
TSX VENTURE : TTR

Terra Energy Corp.

May 25, 2006 20:02 ET

Terra Energy Corp.: Successful Crown Land Sale Strengthens Core Area

CALGARY, ALBERTA--(CCNMatthews - May 25, 2006) - Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company") is pleased to announce that it acquired 33 (gross) sections of undeveloped land in its core area of Fort St. John at the B.C. Crown Land sale held on May 24, 2006. At the sale, the B.C. Government received $103,040,000 in total bonus proceeds for 119,113 hectares of land, representing an average price of $868 per hectare. Terra Energy's successful bids accounted for more than 10% of the total bonus collected.

Cas H. Morel, President and CEO of Terra Energy, stated "Terra Energy is pleased with the results of yesterday's B.C. Crown land sale. The land acquired by Terra Energy is strategic to the development plans of the Company. Terra Energy not only acquired a significant number of undeveloped sections of land, we acquired a number of "ready-to-go" drilling locations".

Despite the increased level of competition in the area, Terra Energy successfully targeted and acquired 8,455 (gross) hectares, or 33 (gross) sections, at this sale. With the acquired sections, Terra Energy currently holds interests in over 230 (gross) sections of land in its core area of Fort St. John, with an approximate 90% working interest. Many of these acquired sections are adjacent, or in close proximity, to Terra Energy's existing lands, and have the potential of containing extensions to various plays currently being developed by the Company.

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'.

Forward Looking Statements:

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 if any of them do so what benefits Terra Energy will derive therefrom.

The TSX Venture Exchange does not accept responsibility For the adequacy or accuracy of this release.

Contact Information

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