VANCOUVER,
Dec. 2, 2013 /CNW/ - Terrace Energy
Corp. (the "Company" or "Terrace") (TSXV:TZR, OTCQX:TCRRF,
FRANKFURT:2TR) is pleased to announce that the BlackBrush Terrace
LP ("BBTLP") has successfully drilled and completed its first well
(the "Chittim Heirs 2-H" well) in the Eagle Ford Shale formation on
its 147,000 acre Maverick County Project.
Chittim Heirs 2-H was drilled to a total depth
of 9,389 feet, including a 4,100 foot horizontal lateral section,
in the Lower Eagle Ford Shale. The well was completed in 15 stages
using hydrocarbon-based hydraulic fracturing fluids.
During the first 15 days of flow-back testing, using 5 ½" casing,
the well produced more than 11,500 barrels of oil, which is
approximately 765 barrels of oil per day, and minor amounts of
associated gas. There can be no assurance that the flow rate will
stabilize at current levels over time.
This successful use of hydrocarbon-based
fracturing fluids represents a significant advancement in the
development of the Eagle Ford Shale in the "black oil" window,
which is defined by low gas-oil ratios found in the northern
extension of the formation. Previous attempts, by other industry
participants to develop commercial production in the black oil
window of the Eagle Ford Shale, were made using high volume
water-based fracturing fluids. This technique has generally not
been commercially successful, despite the formation's rock
properties and hydrocarbon content, because the formation's shallow
depth and lower reservoir pressure make it difficult to recover and
unload the large volumes of water used. Testing results to date
indicate excellent formation productivity and there is no evidence
that water resides within the formation.
BBTLP has now logged over 150 feet of Lower
Eagle Ford Shale in each of two wells including the previously
announced Chittim 1-H well and has established commercial
hydrocarbon production in two wells including the previously
announced successful re-entry of the Chittim F-1H well. BBTLP now
has three strong data sets ranging over 10 miles that exhibit
similar petrophysical and hydrocarbon characteristics associated
with some of the most productive regions within the Eagle Ford area
of South Texas. These data sets
will assist BBTLP in advancing the future exploration and
development of the Eagle Ford Shale potential on its Maverick
County Project.
Dave Gibbs, the
Company's Chief Executive Officer commented: "We are very pleased
with the results of the Chittim Heirs 2-H well to-date. Such
results, together with the successful re-entry of the Chittim F-1H
well, demonstrate we can successfully develop oil production from
the Eagle Ford formation on the Maverick County Project. This
creates a significant new opportunity for the Company."
BBTLP is currently finalizing drilling plans and
budgets to move aggressively forward in the Eagle Ford Shale and
evaluate other high potential formations including the Buda
Limestone, the Pearsall Shale, Glenrose, and Georgetown formations on the Maverick County
Project.
About the Maverick County Project
BBTLP has the right to acquire, through a farm
out agreement, a 50% working interest in the Maverick County
Project, which comprises certain oil and gas leases covering
approximately 147,000 net mineral acres in South Texas. The acreage includes
potential reserves in the newly emerging Pearsall Shale Trend as well as the Eagle Ford
Shale, Buda Limestone and several other intervals of Cretaceous age
formations which have been proven productive on a regional
basis.
About Terrace Energy
Terrace is an oil & gas development stage
company that is focused on unconventional oil extraction in onshore
areas of the United States.
Terrace holds, indirectly, a 50% partnership interest in BBTLP as
well as varying working interests, through its operating
subsidiaries, in other projects in South
Texas.
ON BEHALF OF THE BOARD OF DIRECTORS
"Dave Gibbs"
Dave Gibbs, 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.
SOURCE Terrace Energy Corp.