Terra Energy Corp.
TSX VENTURE : TTR

Terra Energy Corp.

November 03, 2006 09:24 ET

Terra Energy Announces Bought Deal Flow-Through Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 3, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company") is pleased to announce that it has entered into a "bought deal" financing with a syndicate of underwriters led by CIBC World Markets Inc. and including Canaccord Capital Corporation, Acumen Capital Partners and Research Capital Corporation, to issue by way of private placement 3,950,000 flow-through common shares ("Flow-Through Shares") of Terra Energy at a price of $1.90 per flow-through share for aggregate gross proceeds of approximately $7.505 million (the "Offering"). The Company has granted the underwriters the option to purchase up to an additional 1,320,000 flow-through common shares at a price of $1.90 per flow-through share, to raise an additional $2.508 million, exercisable at any time prior to 48 hours before closing. The offering is scheduled to close on or about November 21, 2006, subject to regulatory approvals. These Flow-Through Shares will entitle purchasers to receive $1.90 per share of qualifying expenditures which will be renounced to investors in respect of the 2006 taxation year.

The Flow-Through Shares offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

The Flow-Through Shares will be sold on a "bought deal" basis via a private placement pursuant to applicable securities law exemptions in Ontario, Alberta and British Columbia.

Terra Energy intends to use the proceeds from this offering to drill its high impact exploration opportunities in the Company's Fort St. John core area where Terra Energy holds an average 85% working interest in 243 sections of land and has identified over 20 exploration drilling locations.

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'.

READER ADVISORY

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 (eg., 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 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