Terra Energy Corp.

Terra Energy Corp.

July 07, 2009 14:58 ET

Terra Energy Completes Private Placement of $20.3 Million

CALGARY, ALBERTA--(Marketwire - July 7, 2009) - Terra Energy Corp. (TSX:TT) ("Terra Energy" or the "Company") is pleased to announce that it has successfully completed a previously announced bought-deal equity financing (the "Offering") of subscription receipts ("Subscription Receipts") with a syndicate of underwriters led by Acumen Capital Finance Partners Limited and including GMP Securities L.P. and Scotia Capital Inc. (collectively, the "Underwriters"). The Underwriters exercised their option, in full, to purchase an additional 7 million Subscription Receipts resulting in the issuance of a total of 14 million Subscription Receipts at a price of $1.45 per Subscription Receipt for aggregate gross proceeds of $20.3 million.

The subscription proceeds from the Offering will be held in escrow pending the anticipated closing of the Company's previously announced Peace River Arch acquisition (the "Asset Acquisition") on or about July 15, 2009.

Each Subscription Receipt purchased under the Offering will entitle the holder to receive, for no additional consideration, one unit ("Unit") of the Company upon closing of the Asset Acquisition. Each Unit is comprised of one common share of the Company and one-half of one common share purchase warrant. Each whole common share purchase warrant ("Warrant") shall be exercisable into one common share of the Company ("Warrant Share") at a price of $1.90 per common share for a period of 24 months from today. The Subscription Receipts, common shares, Warrants and Warrant Shares issuable pursuant to the Offering are subject to a hold period expiring November 8, 2009.

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'.


This media release contains certain statements which constitute forward-looking statements or information, including the use of the Offering proceeds and the completion of the Asset Acquisition. 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 information. As such, readers are cautioned not to place undue reliance on the forward looking information, 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.

Contact Information

  • Terra Energy Corp.
    Dean N. Morrison, CFA
    Manager, Corporate Affairs
    (403) 699-7777