Exterra Energy Inc.
OTC Bulletin Board : EENR

Exterra Energy Inc.

June 10, 2008 09:01 ET

Exterra Energy to Bring West Texas Leases to Full Production

HOUSTON, TEXAS--(Marketwire - June 10, 2008) - Exterra Energy Inc. (OTCBB:EENR) announced today that the Company has commenced a start up sequence designed to bring its oil and gas assets in West Texas (Pecos County) back into full production. Three wells are currently online and are producing an average of 3 to 5 barrels of oil per day with two additional wells set to return to production imminently. Exterra will continue to reactivate the balance of the wells over the next several months.

Exterra Energy owns a 75% working interest (56.25% net revenue interest) in the West Texas Permian Basin oil & gas leases, known as the University Lands. These leases were acquired in December 2006 and consist of twelve 10-acre well sites in the West Cardinal field located in Pecos County approximately 150 miles south of Midland, Texas as well as a 12-mile natural gas pipeline. In October 2007, the Company completed a salt water disposal well to allow the reactivation of the field and bring these existing wells onto production.

"The full reactivation program in Pecos County will immediately add to Exterra's production and cash flow," said James Romano, Director, Exterra Energy. "Our management team is extremely pleased with the growth and development of the company's business plan and operations over the past year. As the price of oil and gas continue to strengthen the Company feels that it is well positioned for steady growth."

About Exterra Energy Inc.

Exterra Energy Inc. is an emerging oil and gas exploration and production company based in Houston, Texas. Exterra is primarily active in the Barnett Shale gas field in Texas and now holds an undivided interest in approximately 17,500 gross acres of leases in the Newark East (Barnett Shale) area with over fifty wells producing on the acreage. The Company is also active in West Texas with twelve 10-acre oil and gas well sites in Pecos County.

The Company and its representatives may from time to time make written or oral forward-looking statements, including statements contained in the Company's filings with the SEC and in its reports to shareholders. One can identify these forward-looking statements by use of words such as "strategy," "expects," "plans," "anticipates," "believes," "will," "continues," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. One can also identify them by the fact that they do not relate strictly to historical or current facts. These statements are based on our assumptions and estimates and are subject to risks and uncertainties. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Company is hereby identifying important factors that could cause actual results and outcomes to differ materially from those contained in any forward-looking statement made by or on behalf of the Company.

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