Terra Energy Corp.

Terra Energy Corp.

December 20, 2007 08:30 ET

Terra Energy Announces Gas Flowing Across Peace River

CALGARY, ALBERTA--(Marketwire - Dec. 20, 2007) - Terra Energy Corp. ("Terra Energy" or the "Company") (TSX VENTURE:TTR) is pleased to announce the completion and start-up of its Tower compression and dehydration facility connecting the Company's South Peace Gathering System to the McMahon Gas Plant in Taylor, British Columbia, by way of the newly constructed Peace River Crossing. Gas began flowing through the facility and across the Peace River directly to the McMahon Gas Plant on December 17, 2007. The Company is in the process of tying-in incremental production from its Tower field of approximately 500 BOED, at which time the Company estimates that it's total net production will be approximately 4,200 BOED.

Terra Energy continues to advance its drilling and infrastructure plans in its Eight Mile Field (both North and South). The tie-in of Terra Energy's South Eight Mile Field to the newly constructed West Doe Gas Plant has repeatedly been delayed for over four months as a result of the West Doe Gas Plant operator being unable to gain surface access across a piece of land required for the construction of a connecting gathering pipeline/flowline. This operator has recently obtained a favourable ruling from the British Columbia Mediation and Arbitration Board, but the Company continues to await notification from the operator that firm service is to commence. The Company is prepared to immediately commence tie-in of approximately 500 BOED of net production to coincide with the commencement of firm service. In addition, the Company has licenced and is preparing to commence construction in January of 2008 of a pipeline connecting its North Eight Mile Field to the Tower compression and dehydration facility. This segment of pipeline would serve as the first of two pipeline segments ultimately required to tie-in gas production from the Company's South Eight Mile Field to the Tower compression and dehydration facility. Additional drilling and completions work is being carried out in the Eight Mile Field (both North and South) and results will be made public in the coming weeks.


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