SOURCE: Terra Energy & Resource Technologies, Inc.

January 09, 2008 07:00 ET

Terra Energy & Resource Technologies, Inc. Announces Institutional Investor Closes on Second Round of Financing

Funds Received by Company and Third Closing Scheduled

NEW YORK, NY--(Marketwire - January 9, 2008) - Terra Energy & Resource Technologies, Inc. (OTCBB: TEGR), an energy and natural resource exploration technology company, has received the first of two payments of $500,000 from Cyprus-based Esterna, LTD.

The Purchase Agreement is for the sale of $1 million of unregistered preferred stock convertible into a total of 5 million shares of common stock at 20 cents per share, with 20 million two-year warrants for preferred stock, initially exercisable at 25 cents and then 30 cents per share of stock. The next payment of $500,000 is to be made before March 1, 2008. Esterna also owns 500,000 shares of common stock for which it paid $1 per share in December 2005. The initial investment by Esterna was made following Esterna's assessment of Terra Energy's proprietary STeP technology to identify oil and gas reserves.

"I am pleased that the securities purchase agreement for $1 million of preferred stock convertible at 20 cents per share, a premium to the market at the time, is another example of the investment community's interest in our exploration technology and in our company's potential," said Dmitry Vilbaum, Terra Energy's Chief Executive Officer.

Terra Energy & Resource Technologies, Inc., through its subsidiary Terra Insight Corp., provides mapping and analysis services for exploration, drilling, and mining companies related to natural resources. Terra Energy employs Sub-Terrain Prospecting Technology (STeP), a suite of proprietary techniques used to interpret satellite data, and identify the location and depth of hydrocarbon deposits, gold, diamonds, and other valuable raw materials onshore or offshore.

"In 2007, we announced several corporate and exploration initiatives," said Vilbaum, "and 2008 will be a very exciting year for us. The Esterna deal is a strong strategic alliance, not just a financing. We expect Esterna's involvement and assistance in the expansion and growth of Terra Energy's technologies and business."

About Terra Energy & Resource Technologies, Inc.

Terra Energy & Resource Technologies, Inc., through its subsidiary Terra Insight Corp., provides mapping and analysis services for exploration, drilling, and mining companies related to natural resources found beneath the surface of the Earth. The Company uses proprietary satellite-based STeP (Sub-Terrain Prospecting) technology, which facilitates the prediction and location of commercially viable deposits of hydrocarbons, gold, diamonds, and other natural resources and assesses them for any given geographic area -- on or offshore. For more information visit http://www.terrainsight.com.

Safe Harbor for Forward-looking Statements

This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. There are many factors that could cause the Company's expectations and beliefs about its operations or its plans to acquire additional exploration properties, plans to drill or drilling results to fail to materialize, including but not limited to competition for new acquisitions; availability of capital; unfavorable geologic conditions; prevailing prices for oil, natural gas and other natural resources; and general regional economic conditions.

Contact Information

  • Media Inquiries:
    Terra Energy & Resource Technologies, Inc.
    Dmitry Vilbaum
    CEO
    Phone: (212) 286-9197