Terra Energy Corp.
TSX VENTURE : TTR

Terra Energy Corp.

July 13, 2007 14:31 ET

Terra Energy Reports on East Boudreau Pipeline

CALGARY, ALBERTA--(Marketwire - July 13, 2007) - Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company") is pleased to report that it has now received regulatory approval for its East Boudreau natural gas pipeline. This is a 19.5 kilometre gas pipeline having a combination of 4" and 6" diameter, high pressure pipe. Restaking of the pipeline right-of-way is currently underway and construction is expected to commence July 19, 2007. Construction is scheduled to be completed in late August, 2007. Upon completion of this pipeline project, Terra Energy anticipates adding incremental production of approximately 3MMCF per day (500 boed) from its East Boudreau field.

Further to Terra Energy's March 1, 2007 media release, the Company is also pleased to report that regulatory approval has been granted for, and construction has commenced on, the Peace River crossing. This river crossing is being carried out by third parties and at no cost to the Company, however the crossing remains important to the Company's plans of tie-ing in incremental production from the south side of the Peace River later this year. Completion of the crossing is scheduled for the fourth quarter of 2007. The Company has acquired a site and is currently working on the engineering and equipment acquisition for its Tower Compressor and Dehydration facility, which will compress natural gas for shipment across the Peace River to the McMahon Gas Plant in Taylor, British Columbia for processing. Terra Energy has committed to 10MMCF per day of firm capacity over the crossing and at the McMahon Gas Plant, with an additional 10MMCF per day of interruptible capacity.

The Company also wishes to announce that an officer of the Company has exercised 100,000 stock options pursuant to the Company's stock option plan. 100,000 stock options will be granted to the officer to replace the exercised stock options which will have an exercise price set at the closing price of Terra Energy shares at the close of business on Friday July 13, 2007.

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