Terrace STS LLC, a wholly owned subsidiary of Terrace Energy Corp. (TSXV: TZR.V, OTC: TCRRF) received a US$75 million senior unsecured term credit facility from Houston-based Chambers Energy Capital, the company said June 9.
The credit facility will fund Vancouver, British Columbia-based Terrace’s STS Olmos project in McMullen and LaSalle counties, Texas, the company said.
The facility has a four-year term, the company said, and initially, only $50 million will be available until further approvals, the company added.
"We are extremely pleased to work with Chambers, a highly respected capital provider to the oil and gas industry in the United States. This facility will allow us to accelerate our development plans to drill and complete approximately 55 gross wells over the next 30 months. The cash flow we expect to generate will be the catalyst for the company's transformation from a pure exploration company to a robust oil producer," said Dave Gibbs, president and CEO of Terrace Energy Corp.
Gibbs added, "This credit facility will also allow us to use the majority of our available equity capital to expedite high potential exploratory programs on our Maverick County and Big Wells projects, particularly those targeting the naturally fractured Buda Limestone.”
Rivington Holdings LLC was Terrace Energy Corp.’s financial advisor, the company said.
In the STS Olmos project, about nine wells on roughly 17,000 gross acres have been drilled, the company said. The wells’ IP rates for one month were about 1,000 barrels of oil equivalent per day (boe/d), the company added, noting that of that amount, 83% was liquids.
In the leasehold, about 145 additional drilling locations were identified, Terrace said. In July, pad drilling will be used, Terrace added.
Terrace Energy Corp. develops onshore unconventional oil in the United States.
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