Terra Energy Corp.
TSX : TT

Terra Energy Corp.

May 29, 2012 19:08 ET

Terra Energy Announces Agreement to Reduce Credit Facility

CALGARY, ALBERTA--(Marketwire - May 29, 2012) - Terra Energy Corp. ("Terra" or the "Company") (TSX:TT) announces that in agreement with its Syndicate of Lenders (the "Syndicate"), including the Canadian Imperial Bank of Commerce and ATB Financial, it will reduce its current lending facility (the "Facility") from $100 million to $94 million.

The Facility's borrowing base is determined by the Syndicate and is based on operational and financial indicators including the Company's reserves, operational results and the Syndicates view of the economic environment and current and forecasted commodity prices. The reduction has been requested by Terra in anticipation of our annual bank review which is to take place by the end of the second quarter. The Company anticipates an adjustment to the lending value of its assets based upon the results of any asset divestiture process currently underway and the Syndicate's current and forecasted commodity prices.

Terra is a junior oil and gas corporation engaged in the exploration for, and development and production of, natural gas and oil in Western Canada. Terra's common shares trade on the Toronto Stock Exchange under the symbol 'TT'.

Reader Advisory

All amounts in Canadian dollars unless otherwise specified.

Forward-Looking Statements

This media release may contain certain statements which constitute forward-looking statements or information ("forward-looking statements") including the adjustment to the lending value of its assets based upon results of any asset divestiture process currently underway and the Syndicate's current and forecasted commodity prices. Although Terra believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information available to the Company. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Terra does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Contact Information

  • Terra Energy Corp.
    Bud Love
    Vice President of Finance, & Chief Financial Officer
    403.699.7777

    Terra Energy Corp.
    Berk Sumen
    Manager, Corporate Affairs
    403.699.7777
    403.264.7189 (FAX)