2009-08-04-2009-07-01

To acquire assets in Peace River Arch region, AB, BC, gaining 2,200 BOE/d, 46,000 net undeveloped acres.

Terra Energy Corp., Calgary, (Toronto: TT) plans to acquire assets in the Peace River Arch regions in northeastern British Columbia and northwestern Alberta from an undisclosed seller for C$76.6 million. Fields include Stoddart, Eagle Boundary, Bonanza, Cecil and Worsley. Current production is estimated at 2,200 to 2,300 barrels of oil equivalent per day (70% operated, 77% working interest). The acquisition includes approximately 46,000 net undeveloped acres. Pro forma, Terra production will increase to more than 8,000 barrels of oil per day. "This acquisition…marks a significant step in our continued transformation," says Terra Energy president and CEO Cas H. Morel. "These assets significantly expand the company's production, reserves and development-opportunity base in strong alignment with the company's previously stated strategic objective to become a balanced intermediate oil and gas producer." Closing is expected by July 15.