Terra Energy Corp.

Terra Energy Corp.

May 02, 2007 06:00 ET

Terra Energy Completes Tower-Septimus Pipeline

CALGARY, ALBERTA--(CCNMatthews - May 2, 2007) - Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Corporation") is pleased to announce the completion of the Tower - Septimus segment of the Company's South Peace River Gathering System. Production from the Company's Tower gas field began flowing across this newly completed segment on April 30, 2007, increasing Terra Energy's current production to approximately 3,200 BOED.

Cas Morel, President and CEO of Terra Energy was quoted as saying:

"The completion of the Tower - Septimus pipeline project is one more step forward towards the completion of Terra Energy's South Peace Gathering System. Terra Energy has invested significant time and capital in building a gas gathering network south of the Peace River to service the Company's extensive land base. Not only are significant volumes of natural gas being added to the Company's production base through 2007, but the ground work is being laid for the Company's exploitation and development projects in the years to come."

This pipeline segment is approximately 19 kilometers long and connects at its western end to the Company's existing Septimus pipeline, creating one continuous 6" high pressure gas gathering line which is approximately 36 kilometers in length. Upon the completion of the Peace River crossing, anticipated to occur in the 4th quarter of this year, the flow of natural gas will be reversed on this pipeline segment, and then connecting to a north lateral which will carry the natural gas across the Peace River to the McMahon plant for processing.

Initially, additions to production volumes from the Tower gas field will continue to be limited as a result of capacity constraints between Terra Energy's Wilder gas plant and the McMahon processing plant. When the north lateral and the Peace River crossing are completed later this year, the Company's natural gas production from the Tower gas field will no longer be capacity constrained.

The Company's next production addition (anticipated to be 500 BOED) is expected in July 2007 when the Company expects to complete its previously announced East Boudreau pipeline.


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
    Website: www.terraenergy.ca