Terra Energy Corp.
TSX VENTURE : TTR

Terra Energy Corp.

September 12, 2007 09:00 ET

Terra Energy Places East Boudreau on Production

CALGARY, ALBERTA--(Marketwire - Sept. 12, 2007) - Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company") is pleased to report that it has completed construction of its 19.5 kilometre gas pipeline connecting Terra Energy's East Boudreau gas field in North East B.C. to the Company's 100% owned Red Creek gas plant. The completion of the combination 4" and 6" pipeline adds approximately 3 MMCF per day (500 boed) of natural gas production, raising the Company's current production level to approximately 3,700 boed.

"This marks the completion of the second of four key infrastructure projects that Terra Energy announced for 2007, and I am pleased with the steady progress the Company is making towards placing more of its natural gas reserves on production." stated Cas H. Morel, President and CEO of Terra Energy. "The focused nature of Terra Energy's Fort St. John core area means that every infrastructure project which is completed and which increases our production level, will also improve our operating costs and netback calculations. These increased production levels will also greatly improve our cash flow metrics going forward, especially into 2008."

With the East Boudreau pipeline now complete, Terra Energy next plans to tie-in production at its Eight Mile South gas field. The Company previously announced that it had entered into a transportation and processing agreement with a third party midstreamer and had committed 3.25 MMCF per day (525 boed) of net production to this project. The expected onstream date for this incremental production is during Q4 - 2007. The Company currently has greater than 3.25 MMCF per day of net production capability in its Eight Mile South gas field. Terra Energy has numerous development drilling locations at Eight Mile South, but the Company's development plans for the field will be based upon the specific production decline rate for the Doig gas pool. Significant further development drilling is anticipated to be carried out in Eight Mile South by Terra Energy during 2008.

READER ADVISORY

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.

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, Finance and Chief Financial Officer
    (403) 699-7777