Terra Energy Corp.

Terra Energy Corp.

January 31, 2007 19:54 ET

Terra Energy Reprices Stock Options for General Staff

CALGARY, ALBERTA--(CCNMatthews - Jan. 31, 2007) - Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company") announces, in accordance with the terms of the Company's Employee Stock Option Plan, and subject to regulatory approval, that it has revised the exercise price of approximately 2,100,000 employee stock options previously granted to staff to a price of $1.08, which was the closing price for shares of Terra Energy Corp. on January 29, 2007. This repricing is intended to apply to stock options held by all employees, but expressly excludes any stock options held by directors and senior officers of the Company. The number, term, vesting and other provisions of the employee stock options are to remain the same.

In light of an extremely competitive labour market, particularly in respect of geotechnical professionals, the Board of Directors of the Company reviewed the existing exercise prices of all employees' stock options and determined, given current market conditions, that a general repricing was appropriate. The Board of Directors recognizes that the employees of the Company are the key to Terra Energy's ongoing success, and believes that by revising the exercise price of stock options granted to staff members, the Company's compensation strategy will remain highly competitive relative to industry peers.

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'.

Contact Information

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