Terra Energy Corp.
TSX VENTURE : TTR

Terra Energy Corp.

April 04, 2006 09:00 ET

Terra Energy Ties in More Production at Mica

CALGARY, ALBERTA--(CCNMatthews - April 4, 2006) - Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company") is pleased to announce the completion of its Mica pipeline project in the Company's Fort St. John core area in northeast British Columbia. The Mica 16-28-81-14w6 well ("16-28 Well") has recently been completed as a dual well, including both as an oil well from the Charlie Lake zone and as a gas well from a deeper gas bearing formation. The Charlie Lake zone is expected to produce at rates of approximately 50 BOED. The deeper gas bearing zone will be initially restricted to rates of 1,200 mcf/day (200 BOED), but will be allowed to increase to approximately 3,000 mcf/day (500 BOED) as compression limitations are removed in the coming weeks.

Tie in of the well required the installation of separation and dehydration facilities at Terra Energy's 16-28 Well site and the construction of one mile of twin pipelines, 4" diameter each, one for natural gas and one for oil. The natural gas is being flowed into a gathering system operated by an industry mid-streamer then on to their processing facility at Pouce Coupe. Several upgrades were also required to the mid-streamer's gathering system in order to accommodate the Company's gas volumes. Current gas production from the well will be restricted to 1,200 mcf/day (200 BOED) until additional compression is added at the Pouce Coupe plant which is expected within 4 to 6 weeks. Once the additional compression is in place, natural gas production from the 16-28 well will be allowed to increase to approximately 3,000 mcf/day (500 BOED). Oil from the 16-28 Well has been on production for the past few weeks at 50 BOED and was being trucked but will now be transported by pipeline to an industry partner's facility for processing and sale.

With this additional 200 BOED of production from Mica, Terra Energy's current production is approximately 3,625 BOED. Completion of facility enhancements and additional tie ins over the next few weeks are anticipated to help the Company in achieving its short term objective of 4,000 BOED.

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