Terra Energy Corp.
TSX VENTURE : TTR

Terra Energy Corp.

November 21, 2006 19:22 ET

Terra Energy Closes $15 Million Offering

CALGARY, ALBERTA--(CCNMatthews - Nov. 21, 2006) -

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Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company") is pleased to announce that it has closed its previously announced "bought deal" equity financing (the "Offering") with CIBC World Markets Inc., Canaccord Capital Corporation, Acumen Capital Finance Partners Limited and Research Capital Corporation (the "Underwriters").

As a result of strong demand, the Offering was increased to 6,850,000 flow-through common shares at a price of $1.90 per flow-through share, for a total of $13,015,000. The Underwriters exercised their option to purchase an additional 1,050,000 flow-through common shares at a price of $1.90 per flow-through share for a further $1,995,000. Gross proceeds of the Offering totaled $15,010,000. The Underwriters received a commission of 6% of the gross proceeds of the Offering.

In addition to the Offering, officers, directors, consultants and associates of Terra Energy purchased 370,000 flow-through common shares at a price of $1.90 per flow-through share for total of $703,000.

Terra Energy intends to use the proceeds from the above to fund its exploration program focused on 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'.

Forward Looking Statements:

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 and 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 prices, 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 facts 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