Terra Energy Corp.

Terra Energy Corp.

November 03, 2006 17:59 ET

Terra Energy Increases Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 3, 2006) - Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company") is pleased to announce that it has increased the amount of its "bought deal" equity financing (the "Offering") with CIBC World Markets Inc., Canaccord Capital Corporation, Acumen Capital Partners and Research Capital Corporation (the "Underwriters").

As a result of very strong demand, Terra Energy has agreed to increase the Offering to 6,850,000 flow-through common shares at a price of $1.90 per flow-through share, raising gross proceeds of approximately $13.0 million. As part of the revised Offering, the Company has granted the Underwriters the option to purchase up to an additional 1,050,000 flow-through common shares at a price of $1.90 per flow-through share, to raise an additional approximately $2.0 million. The Underwriters option to purchase is exercisable at any time prior to 48 hours before closing The Offering, which is subject to regulatory approval, is scheduled to close on November 21, 2006.

In addition to the Offering, Terra Energy officers, directors and consultants subscribed for 370,000 flow-through common shares, for gross proceeds of approximately $700,000 on identical terms and conditions as the Offering.

The Flow-Through Shares offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

The Flow-Through Shares will be sold on a "bought deal" basis via a private placement pursuant to applicable securities law exemptions in Ontario, Alberta and British Columbia.

Terra Energy intends to use the proceeds from this offering to drill its high impact exploration opportunities in the Company's Fort St. John core area where Terra Energy holds an average 85% working interest in 243 sections of land and has identified over 20 exploration drilling locations.

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 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 (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. 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 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