Terra Energy Corp.
TSX VENTURE : TTR

Terra Energy Corp.

July 27, 2005 12:40 ET

Terra Energy Closes $23 Million Financing

CALGARY, ALBERTA--(CCNMatthews - July 27, 2005) -

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Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy") has closed on its previously announced $23 million "bought deal" equity financing (the "Offering") with Canaccord Capital Corporation and Research Capital Corporation (the "Syndicate").

The oversubscribed Offering consisted of the sale of 3,900,000 Common Shares issued on a flow-through basis at a price of $2.00 per share totaling $7,800,000 and 9,117,353 Units at a price per Unit of $1.70 totaling $15,499,500. Each Unit will be comprised of one common share of Terra Energy and one half of one common share purchase warrant. Each whole warrant will entitle the warrant holder to acquire one common share at an exercise price of $2.10 at any time prior to one year after closing of the Offering. The issued securities will be subject to a four month hold until November 28, 2005.

The Syndicate received an aggregate commission of six percent of the gross proceeds from the financing.

Terra Energy intends to use the proceeds from this offering to drill high impact opportunities in its Fort St. John core area, as well as to fund its continuing 2005 CAPEX program and 2006 exploration program.

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:

Certain information set forth in this media release contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Terra Energy's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources.

Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Terra Energy's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and , accordingly, no assurance can be given that any of the events anticipated by the forward looking-statements will transpire or occur, or if any of them do so what benefits Terra Energy will derive there from.

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