Terra Energy Corp.
TSX VENTURE : TTR

Terra Energy Corp.

February 21, 2008 09:00 ET

Terra Energy Adds Production From Eight Mile South

CALGARY, ALBERTA--(Marketwire - Feb. 21, 2008) - Terra Energy Corp. ("Terra Energy" or the "Company") (TSX VENTURE:TTR) is pleased to announce that its Eight Mile South gas field has now been placed on production, adding approximately 500 BOED to the Company's production base. "This represents the first production from the Company's Eight Mile South gas field." said Cas H. Morel, President and CEO of Terra Energy. "As we continue with our drilling program and advance our development of the entire field, the information from this early production will be important in determining an optimal exploitation strategy."

Terra Energy previously announced that it had arranged a 3.25 MMCFD commitment of firm processing capacity from a third party mid-streamer. The third party mid-streamer constructed and recently commissioned the West Doe Gas Plant during 2007. However, as a result of delays in obtaining surface access, the third party mid-streamer was delayed in the construction of the connecting flowline/pipeline to our Eight Mile South gas field. The completion of this project adds approximately 500 BOED of incremental production, bringing the Company's current production total to approximately 4,500 BOED.

In November of 2007, Terra Energy also announced the drilling (together with an industry partner) of a deep Devonian exploration well at Monias, British Columbia. This well has been cased and is currently undergoing completion operations and testing. Results will be released following testing.

READER ADVISORY

A BOE conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency for the individual products at the wellhead. Such disclosure of BOE's may be misleading, particularly if used in isolation.

The media release may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors that could affect Terra Energy's operations or financial results are included in Terra Energy's reports on file with Canadian securities regulatory authorities.

The reader is further cautioned that estimating reserves requires judgments and decisions based upon available geological, geophysical, engineering and economic data. These estimates may change, having either a positive or negative effect on the net earnings of the Company as further information becomes available and as the economic environment changes.

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'.

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