Terra Energy Corp.

Terra Energy Corp.

October 11, 2012 12:54 ET

Terra Energy Announces Further Extension to Lending Facility

CALGARY, ALBERTA--(Marketwire - Oct. 11, 2012) - Terra Energy Corp. ("Terra" or the "Company") (TSX:TT) announces that the Company has agreed with its syndicate of senior lenders (the "Syndicate"), including the Canadian Imperial Bank of Commerce and ATB Financial, that the existing lending facility (the "Facility") will be extended through to October 31, 2012.

In support of the previously announced subordinated debt restructuring process, the Syndicate has agreed to amend the existing Facility to ensure that the term of the Facility will coincide with the targeted completion of the debt restructuring process which is currently underway. The debt restructuring process is contingent upon the negotiation of an intercreditor agreement between the Syndicate and the subordinated debt provider, a new credit facility being negotiated with the subordinated debt provider and all confirmatory due diligence being completed by the subordinated debt provider. Funding of the subordinated debt facility is targeted to take place on or before October 31, 2012. Accordingly, Terra's existing Facility has been extended through to the same date.

Each of the previously announced Montney marketing process and the parallel Company-wide marketing process are underway, data rooms are open and presentations to interested parties are on-going. The anticipated bid date for expressions of interest, non-binding proposals and firm bids for each of the Montney process and the parallel Company-wide process is October 15, 2012.

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 extension of the Facility, the debt restructuring process, the targeted date for the funding of the subordinated debt facility, the Montney marketing process, the parallel Company-wide marketing process and the anticipated bid date for the marketing processes. 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

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