2010-03-11-2010-02-01

To acquire acreage targeting the Montney formation in BC and option to purchase 2,000 BOE/d.

Terra Energy Corp., Calgary, (Toronto: TT) plans to acquire properties targeting the Montney shale formation in northeastern British Columbia from an unnamed seller. Financial terms of the agreement have not been disclosed.

The assets include approximately 14 net sections in the Altares/Farrell Creek area, 16.25 net sections in the Wilder area and 3.75 net sections in Groundbirch area.

Pro forma the acquisition, Terra says it will be one of the largest holders of prospective Montney rights in British Columbia, with approximately 100 net sections in the resource play.

Also in northeastern British Columbia, Terra will acquire approximately 8.5 net sections of land with average working interests of between 25% and 40% and rights to related production and facilities in the Inga/Fireweed area.

Under the arrangement, Terra has an option to acquire additional interests in properties with production of 2,000 barrels of oil equivalent per day for C$115 million in cash. The option expires March 31, 2010.