VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 3, 2012) - Terrace Energy Corp. (TSX VENTURE:TZR) (the "Company" or "Terrace") is pleased to announce its financial and operating results for the first quarter ended April 30, 2012.
The Company's interim financial statements and management discussion and analysis for the three months ended April 30, 2012 are available for viewing at www.sedar.com and on the Company's website at www.terraceenergy.net.
First Quarter Achievements
- drilled, completed and placed into production the Company's first well (STS 1-667), which is a horizontal, primarily oil, well on its STS Olmos project
- increased the Company's working interest in its Cutlass project by 5%
- commenced preparation for a two well drilling program on its Cutlass project
- secured a non-brokered private placement of 10 million common shares at $1.00 per share for proceeds of $10,000,000 (closed in May 2012)
- Dave Gibbs was appointed President
First Quarter Highlights
- total revenues from oil and gas sales for the quarter were $555,756
- the Company's share of revenues, net of royalties, for the quarter from STS 1-667 was approximately $515,000 (the Company's share of the total costs of STS 1-667 was $1,264,693)
- net income for the quarter was $212,244 after the deduction of non cash expenses in the aggregate amount of $81,055
- STS 1-667 operated for 81 days in the quarter during which time it produced 38,768 barrels of oil and liquids and 46,067 million cubic feet of natural gas
- the Company's share of oil and gas production from STS 1-667 was approximately 4,904 barrels of oil and liquids at an average price of $109.11 per barrel and 5,827 million cubic feet of natural gas and an average price $2.17 per million cubic feet
Eric Boehnke, the Company's Chief Executive Officer, commented: "The Company's very first producing well, which is situated on our STS Olmos project in McMullen County, Texas, was placed into production in February and has performed above expectations. We are very excited about the Company's future prospects and we are eager to develop the rest of the acreage in due course."
For the three months ended April 30, 2012.
(expressed in Canadian dollars)
|Exploration and evaluation assets
|Property and equipment
|Income per share - basic and diluted
About Terrace Energy
Terrace Energy is an oil & gas development stage company that is focused on unconventional oil extraction in onshore areas of the United States. It currently has non-operating investments in two principal properties situated in Texas with targets in the "Olmos" and "Eagle Ford" formations.
APPROVED BY THE BOARD OF DIRECTORS
Eric Boehnke, Chief Executive Officer
This press release includes "forward-looking information", including the revenue to be received from the STS 1-667H well and the time when the Company receives that revenue, the production rate of that well, the timing of exploration drilling and the potential for the Company's projects to support additional drilling locations. Users of forward-looking information are cautioned that actual results may vary from the forward-looking information disclosed in this press release. The material risk factors that could cause actual results to differ materially from the forward-looking information contained in this press release include, lack of availability of goods and services, regulatory changes and all of the other risks and uncertainties normally associated with the exploration for and development and production of oil and gas. The forward-looking information contained in this press release represents management's best judgment of future events based on information currently available. The material assumptions used to develop the forward-looking information include: that necessary goods and services will be available on reasonable terms, that regulatory requirements will not change in any material respect and that other aspects of the Company's operations will not be affected by unforeseen events. The Company does not assume the obligation to update any forward-looking information, except as required by applicable law.