Terra Energy Corp.

Terra Energy Corp.

March 31, 2006 12:45 ET

Terra Energy Ties in 225 BOED of Additional Production at Boudreau

CALGARY, ALBERTA--(CCNMatthews - March 31, 2006) - Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company") is pleased to announce drilling success and production additions at the Company's Boudreau Field. The Company successfully drilled and completed the A12-24-84-21W6 ("A12-24") well as a gas well in the Triassic formation and re-completed the 14-13-84-21W6 ("14-13") well as a dual producing well from both the Triassic and Belloy formations. In addition, the Company has recently drilled and cased the 7-25-84-21W6 ("7-25") well, which will be completed in the Triassic formation. The Company is continuing with its development drilling program and is currently drilling its Boudreau 14-25-84-21W6 ("14-35") location.

Terra Energy has completed the equipping and tie-in of the A12-24 and 14-13 wells. These two wells have been placed on-stream and have added an additional 225 BOED to the Company's production volumes. The Company will tie-in the 7-25 and 14-25 wells when suitable surface conditions allow.

These series of tie-ins at Boudreau are directed at assisting the Company in reaching our short-term production target of 4,000 BOED. Terra Energy, earlier this week, announced the completion of its Septimus project linking the Septimus field to the Company's Wilder gas plant. An announcement concerning a third pipeline project is anticipated to be made within the next week.

Volume Reporting

The term, boe, may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Forward Looking Statements:

Certain information set forth in this media release contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Terra Energy's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Terra Energy's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward looking-statements will transpire or occur, or if any of them do so what benefits Terra Energy
will derive therefrom.

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