Terra Energy Corp.

Terra Energy Corp.

December 19, 2011 19:18 ET

Terra Energy Engages Advisors to Market B.C. Montney Assets by Sale or Joint Venture

CALGARY, ALBERTA--(Marketwire - Dec. 19, 2011) - Terra Energy Corp. ("Terra" or the "Company") (TSX:TT) is pleased to announce that it has engaged Macquarie Capital Markets Canada Ltd. and Scotia Waterous of Scotia Capital Inc., jointly, as marketing/financial advisors to assist the Company in connection with an outright sale or joint venture of its unconventional Montney assets located in northeast British Columbia. Terra has also engaged GMP Securities LP to assist the Company in the analysis and evaluation of any proposed transactions.

Terra owns over 120,000 net acres (over 190 net sections) of land within the Montney Fairway in northeast British Columbia. Terra has incorporated "NorAm Energy Worx Inc." for the sole purpose of holding these assets and facilitating any prospective transaction. Terra's Montney assets are divided as between the unconventional Montney gas and gas liquids play (comprising approximately 132 net sections) and the nascent unconventional Montney condensate play (approximately 59 net sections).

"The Montney is Terra's single largest asset and it has eclipsed the balance of the Company in terms of its size and potential as a resource play. At the same time, the Montney does not currently contribute in any material sense to either our production or cash flow." stated Cas H. Morel, President and CEO of Terra. "It is for this reason that it is imperative to find the capital to develop these assets to their full potential or to find new ownership and crystallize value for our shareholders. All indications are that there is considerable appetite for these Montney assets among strategic players and, in particular, Asian countries."

Terra has also recently announced that it is marketing certain non-core assets in west-central Alberta, including a substantial Duvernay and a substantial Montney land position. These west-central Alberta assets consist of approximately 221 net sections in total.

Terra is a junior oil and gas corporation engaged in the exploration for, and development and production of, natural gas and oil in Western Canada. Terra's common shares trade on the Toronto Stock Exchange under the symbol 'TT'.

Reader Advisory

Forward-Looking Statements

This media release may contain certain statements which constitute forward-looking statements or information ("forward-looking statements") including considerable appetite for Montney assets among strategic players including Asian players and the marketing and sale of certain west-central Alberta assets of the Corporation. There is a risk that the sale or joint venture process for the Montney assets in British Columbia and/or the sale process for the west-central Alberta assets may not occur within the expected timeframe or at all. Although Terra 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 available to the Company. 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 statements. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed 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 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.
    Berk Sumen
    Manager, Corporate Affairs
    403.264.7189 (FAX)