Terra Energy Corp.
TSX VENTURE : TTR

Terra Energy Corp.

April 28, 2009 19:33 ET

Terra Energy Provides Operations Update

CALGARY, ALBERTA--(Marketwire - April 28, 2009) - Terra Energy Corp. ("Terra Energy" or the "Company") (TSX VENTURE:TTR) is pleased to release the results of our winter drilling and operations activities for the year to date. In total, the Company has successfully drilled 5 wells (3.7 net) during 2009, two in our Monias area and 3 in our Sunrise area.

Monias

The Monias 16-24 well was drilled to a depth of 2,100 metres with targeted zones in the Permian and the Mississippian formations, and has been successfully completed. A 7,500 meter, 6" tie-in was completed in late March of 2009 to Terra Energy's Wilder facility. The well is currently producing on a "restricted" basis. The Monias 14-9 well was drilled with targeted zones in the Permian and the Mississippian formations also, and completed in March of 2009. A 300 metre tie-in to a third party facility was completed and placed on production in April of 2009. A third well is currently being drilled and completed at Monias. These wells remain on "confidential" status.

Sunrise

Three wells were drilled and cased at Sunrise with the primary targets being the Doig and Doig Phosphate. Completion operations will be conducted after spring break-up and the wells will be tied-in through the Company's Sunrise gathering system to its Tower Dehydration and Compression Plant.

Guidance for Q1-2009

Terra Energy's average production for first quarter 2009 exceeded 5800 BOE/day. Production from these new wells will allow Terra Energy to offset naturally occurring production declines and maintain current production levels while maximizing facility utilization.

Our preliminary 2009 Capital Expenditure Plan and Budget was designed to hold production rates at about 6,000 BOE/day, while the Company explores other opportunities for growth. The first of these opportunities was the recently announced agreement to acquire Tecton Energy Canada ULC. The Tecton acquisition, announced on April 20, 2009 and scheduled to close in late May, will significantly strengthen the Company's undeveloped land position in its Fort St. John core area.

Terra Energy will continue to monitor cash flow in light of changing commodity pricing with a view towards adjusting its Capital Expenditure Plan as needed to maintain a balance between production and cash flow, and an allocation of capital to "cost-effective" M&A growth.

Terra Energy will be presenting at the 2009 COPIC Energy conference in Toronto on April 29th and Montreal on April 30th. An updated presentation is available for viewing on the Company's website at www.terraenergy.ca.

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 the drilling and completion of wells, the offset of production declines, maintenance of production levels, facility utilization, the closing of the Tecton acquisition, expectations of future production, cash flows, capital expenditures and the allocation of capital. Although Terra Energy 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. 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 information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. 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. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in more detail 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 Energy 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.

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'.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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