Terra Energy Corp.

Terra Energy Corp.

March 30, 2005 19:26 ET

Terra Energy Corp. Retires Standby Mezzanine Financing Credit Facility


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TERRA ENERGY CORP.

TSX VENTURE SYMBOL: TTR

MARCH 30, 2005 - 19:26 ET

Terra Energy Corp. Retires Standby Mezzanine Financing
Credit Facility

CALGARY, ALBERTA--(CCNMatthews - March 30, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company")
announces that the Company has retired its standby mezzanine financing
credit facility. The purpose of the credit facility was to provide short
term financing in connection with the acquisition of the Wilder assets
completed December 31, 2004. The facility, which allowed for a maximum
drawdown of $15,000,000, was drawn down to $10,000,000 on December 31,
2004. The first repayment on the facility was in the amount of
$6,000,000 on February 8th, 2005 with the remaining balance of
$4,000,000 having been repaid on March 29th, 2005. The credit facility
has been retired through proceeds from the Company's recent private
placement and cash flow.

Terra Energy is a junior oil and gas company engaged in the exploration
for, and development and production of, natural gas and oil primarily 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. Terra Energy disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Terra Energy Corp.
    Mr. Bud Love
    Vice-President of Finance and Chief Financial Officer
    (403) 699-7777
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.