Business & Finance
Business and Finance
Business and Finance
Fri, February 17, 2012 Terrace Appoints New President and Enters Into New Property Acquisition Agreements
February 17, 2012 09:00 ET
Terrace Appoints New President and Enters Into New Property Acquisition Agreements
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 17, 2012) - Terrace Energy Corp. (TSX VENTURE:TZR) -
NOT FOR DISSEMINATION IN THE UNITED STATES.
Terrace Energy Corp. (the "Company" or "Terrace") is very pleased to announce the appointment of Dave Gibbs as President of the Company. Mr. Gibbs, a director of the Company, has over 35 years of experience in the upstream oil and gas industry and a degree in Mechanical Engineering from Georgia Institute of Technology.
Eric Boehnke, the Company's Chief Executive Officer, commented: "Dave is very well respected among his peers, particularly those operating in the southern United States, and has already demonstrated to the Company and its board of directors the value of his technical expertise and personal relationships within the industry."
Acquisitions
Terrace is also pleased to announce it has entered into the following agreements to acquire additional oil and gas interests.
The Company has agreed to acquire an additional 5% working interest and 3.75% net revenue interest in the Cutlass Project for US$234,096. The Cutlass Project consists of certain oil & gas mineral leases covering approximately 3,395 acres in Dimmitt and LaSalle Counties, Texas. The Company previously purchased a 25% working interest and an 18.75% net revenue interest in the Cutlass Project in November 2011.
The Company has also entered into a non-binding Letter of Intent (LOI) to acquire interests in certain mineral leases covering approximately 8,800 acres in Regan and Irion Counties, Texas. The LOI provides that the Company will acquire a 50% working interest and a 37.5% net revenue interest in 4 recently drilled producing oil wells plus oil & gas mineral leases covering approximately 2,300 acres for an aggregate maximum purchase price of US$5,750,000. The LOI further provides that the Company will be granted an option to acquire a 50% working interest and a 37.5% net revenue interest in approximately 6,500 acres of adjacent undeveloped mineral leases on terms yet to be finalized. The final terms of the acquisition and option agreement will be set out in a definitive purchase and sale agreement, which is currently under negotiation, and is subject to financing among other things.
Eric Boehnke, the Company's Chief Executive Officer, further commented: "We are very enthusiastic about the Cutlass Project, which is situated in the heart of the Eagle Ford oil play, and are pleased that we were able to increase our interests. And, the opportunity to acquire interests in the heart of the Permian Basin, where the highly prospective Horizontal Wolfcamp play is under development, is a logical next step in the growth of the Company."
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 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
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.
