VANCOUVER,
Oct. 7, 2013 /CNW/ - Terrace Energy
Corp. (the "Company") (TSXV:TZR, OTCQX:TCRRF, FRANKFURT:2TR) is
pleased to announce the acquisition of a significant additional
acreage package to its STS Olmos Project in South Texas, USA. The Company has acquired a
100% working interest / 75% net revenue interest in 1,230.37 net
mineral acres directly adjacent to its current leasehold position.
This acquisition brings the Company's net mineral acreage position
from 3,875 net acres to 5,105 net acres.
The Company acquired this acreage from Nortex
Corporation and Kent Production, LLC for US$492,148.00 or $400.00 per net mineral acre. The Company is
required to drill three wells (the "earning wells") into the Olmos
Formation over the next three years in order to fully secure its
acreage position. The Company will also pay a success bonus of
US$123,037.00 ($300 per acre) upon the successful completion of
each of these three earning wells.
In addition to the earning wells, the Company
expects that this acreage position will support at least 9
additional drilling locations (12 total) in the Olmos formation. To
date, the Company and its partner have drilled 8 successful wells
in this project and have identified approximately 64 gross
additional locations on the existing leasehold. The Company owns
approximately a 30% working interest in the current project
acreage.
Dave Gibbs, the
Company's President, commented: "This acquisition is the first step
in our program to expand our acreage in this project. This is a
core focus area for our Company and we are extremely pleased with
the results achieved to date. We are planning an aggressive
expansion of our drilling program in 2014 and look forward to
continuing success."
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.
ON BEHALF OF THE BOARD OF DIRECTORS
"Eric Boehnke"
Eric Boehnke, CEO
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.
Forward-Looking Information
This press release includes forward-looking
information and forward-looking statements (together,
"forward-looking information") within the meaning of applicable
Canadian and United States
securities laws. Forward-looking information includes, but is not
limited to: information regarding the development of the STS
Olmos project and the timing thereof. Users of forward-looking
information are cautioned that actual results may vary from the
forward-looking information disclosed in this press release. The
material risk factors that could cause actual results to differ
materially from the forward-looking information contained in this
press release include changes to the Company's ability to access
infrastructure in the vicinity of STS Olmos Project at a reasonable
price, costs for and availability of required goods and services,
regulatory changes and all of the other risks and uncertainties
normally associated with the exploration for and development and
production of oil and gas, including geologic uncertainties,
unforeseen drilling hazards, accidents and adverse weather
conditions. The forward-looking information contained in this press
release represents management's best judgment of future events
based on information currently available. The material assumptions
used to develop the forward-looking information include: that
production from the wells at the STS Olmos Project will continue as
projected, that the Company will be able to access infrastructure
in the vicinity of the STS Olmos Project on reasonable terms, that
the Company will be able to access the goods and services necessary
in order to conduct further exploration, development and production
at the STS Olmos Project on reasonable terms, that regulatory
requirements will not change in any material respect and that other
aspects of the Company's operations will not be affected by
unforeseen events. Statements regarding future drilling locations
are based on geologic interpretations which are subject to revision
as further data is developed. The Company does not assume
the obligation to update any forward-looking information, except as
required by applicable law.
SOURCE Terrace Energy Corp.