SOURCE: Terra Energy & Resource Technologies, Inc.

September 05, 2007 09:53 ET

South Korean Company Granted Extension to Letter of Intent for Joint Venture With $5M Investment in STeP Satellite Technology

NEW YORK, NY--(Marketwire - September 5, 2007) - Terra Energy & Resource Technologies, Inc. (OTCBB: TEGR), an energy and natural resource exploration technology company, announced today that it has agreed to extend the terms of a Letter of Intent to establish a joint venture partnership with a South Korean energy company signed earlier this year.

The LOI between Terra Energy and U-Sung Energy was signed May 21. Under the original terms each company agreed to establish the joint venture partnership, and U-Sung Energy would pay an estimated $5 million for 14.125 million shares of Terra's stock. Terra would grant an exclusive license for the use of its STeP technology in certain areas of Asia.

"Although the Korean company U-Sung Energy, which signed the Letter of Intent with us in May, is not a repeat investor, its head Mr. Sang Gu Lee is a great supporter of our technology," said Dmitry Vilbaum, Terra's Chief Executive Officer. "In connection with the LOI, Mr. Lee has asked us to extend it until Sept. 30, 2007."

The non-binding Letter of Intent now proposes the parties enter into a definitive binding stock purchase agreement this month and close on the private placement with the $5 million payment to Terra by October, said Vilbaum.

"The Korea Joint Venture would be 10 percent owned by our Company, in exchange for our agreement to provide STeP technology to the Joint Venture in certain areas of Asia on an exclusive basis at normal service rates," added Vilbaum.

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 primarily 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. The Company interprets and quantifies satellite and geologic data to determine locations and depths of natural resource deposits, and assess them for any given geographic area -- on or off shore. For more information visit http://www.terrainsight.com.

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