Business & Finance
Business and Finance
Business and Finance
Tue, December 6, 2011 Terrace Completes Acquisition of STS Project in South Texas
December 06, 2011 09:00 ET
Terrace Completes Acquisition of STS Project in South Texas
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2011) - Terrace Energy Corp. (TSX VENTURE:TZR) (the "Company") is pleased to announce that it has completed the previously announced acquisition of its STS Project in Texas.
The Company, through its wholly owned subsidiary, Terrace STS, LLC, has closed and funded its transaction with Whittier Energy Company of Houston, Texas to purchase all of its leasehold interests in approximately 14,400 gross acres (3875 net acres) in LaSalle and McMullen Counties, Texas. The purchased interests vary slightly across the acreage, averaging a 26.88% Working Interest and a 20.16% Net Revenue Interest. The purchase price was US$1,000,000.
The operator has proposed an initial test well to be spud before year-end 2011 at a net cost to Terrace of US$1,060,000. The project will be the re-entry of a previously drilled pilot hole which identified the existence and reservoir characteristics of the Olmos formation offset to the prolific AWP Field in McMullen County. The initial test well is scheduled to be at least 3,600' of horizontal lateral through the Olmos formation and with a twelve-stage fracture stimulation program.
Results from this initial test well will be used to plan future field development. Based on typical well spacing programs for analogous development projects in the vicinity of the STS Project, the project acreage has the potential to support up to 60 offset drilling locations.
APPROVED BY THE BOARD OF DIRECTORS
Eric Boehnke, President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
