Terra Energy Corp.

Terra Energy Corp.

February 10, 2010 19:31 ET

Terra Energy Announces Montney Farm-In

CALGARY, ALBERTA--(Marketwire - Feb. 10, 2010) - Terra Energy Corp. ("Terra Energy" or the "Company") (TSX:TT) is pleased to announce that it has entered into a Farm-in and Option Agreement with a large producer (the "Farm-in Agreement"), whereby Terra Energy has committed to drill two test wells and will have the option to drill a third test well, all with a view towards earning a 100% interest in 13 sections of prospective land within the Montney Fairway in Northeast British Columbia.

"This farm-in deal has a compelling upside reserves component and nicely compliments our recent announcement on the Company's strategic push into the Montney." said Cas H. Morel, President and CEO of Terra Energy. "Upon earning, and subject to the closing of the recently announced Arrangement, the Company will have approximately 113 net sections of prospective land within the Montney Fairway in Northeast British Columbia."

The first test well is required to be spud on or before July 30, 2010. The second test well must be spud on or before September 30, 2010. The test wells will primarily be targeting the Montney formation and other deeper formations, but may also have secondary targets. Each of the two initial test wells is planned to be a simple vertical drill, but the Farm-in Agreement does allow for the conversion of one vertical drill into a horizontal drill, thereby satisfying the earning requirement for drilling the third test well (the option well). Under the terms of the Farm-in Agreement, the farmor will retain a nonconvertible 10% gross overriding royalty on production from the earned lands. The farm-in lands and the option lands are all adjacent to or in close proximity to other Company lands in Wilder and Altares/Farrell Creek areas. 


This media release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including, expectations of future drilling dates, the type of wells, the formations targeted, reserves upside, the satisfaction of earning requirements for 13 sections of prospective lands and the closing of the previously announced Montney Arrangement. Although Terra Energy 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. 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. 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. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in more detail 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 Energy 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

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 Toronto Stock Exchange under the symbol 'TT'.

Contact Information

  • Terra Energy Corp.
    Mr. Bud Love
    Vice President of Finance and Chief Financial Officer
    (403) 699-7777