VANCOUVER, April 14, 2015 /CNW/ - Terrace Energy
Corp. (the "Company") (TSXV: TZR, OTCQX: TCRRF, FRANKFURT: 2TR) reports continuing positive
results and progress on its STS Olmos Development Project in
McMullen and LaSalle Counties, Texas.
The Company previously reported initial flow back testing
reports on the second three-well pad, the STE #1-5H, #2-5H and
#3-5H pad at a combined initial rate of 2,821 BOEPD. Stabilized 30
Day Average IP rates are now reported at a combined total of 2,478
BOEPD as follows:
- STE #1-5H 694 BOPD, 1172 MCFD (889 BOEPD*)
- STE #2-5H 554 BOPD, 923 MCFD (708 BOEPD*)
- STE #3-5H 698 BOPD, 1101 MCFD (881 BOEPD*)
These wells have now been on production for approximately 40
days have produced a total of approximately 100,000 BOE.
George Morris, the Company's Sr.
Vice President and COO, stated "We continue to be pleased with the
results of our new wells. The six wells completed to date in our
pad drilling program continue to meet or exceed our model
expectations. We have demonstrated excellent, repeatable
performance results across the field. The STS Project provides a
stable, profitable and predictable growth platform for the
Company."
Progress continues as planned on the overall development of the
project. Drilling operations have been successfully concluded on
two additional three-well pads. These six wells in McMullen County have been successfully drilled
and cased in the Olmos Formation with lateral lengths averaging
5,400 feet. Based on the successful experience with the first two
pad developments, fracture stimulation programs are being refined
and optimized. In order to take advantage of favorable market
conditions, the Company's partner is rebidding stimulation and
related services and will finalize schedules accordingly. The
obligations under the existing drilling rig contract have also been
fulfilled. We are currently demobilizing the current rig and are
exploring options and timing to reinitiate the drilling program as
market conditions dictate.
The Company, through its wholly owned subsidiary Terrace STS,
LLC, holds a 15% interest in the above mentioned new wells on the
STE pad and 27% working interest in the majority of the field
acreage including the next six completions.
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
"Dave Gibbs"
Dave Gibbs, CEO
* BOEs may
be misleading, particularly if used in isolation. A BOE conversion
ratio of 6 Mcf: 1 bbl is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the
wellhead.
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** The
results observed are not necessarily indicative of long-term
production performance or the ultimate recovery from these
wells
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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 plans for the development of the Company's
projects and the timing thereof, including the potential number of
drilling locations on the STS Olmos Development Project and
expectations regarding achieving key successes and milestones over
the next several months. Users of forward-looking information are
cautioned that actual results may vary materially 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 its projects at a reasonable
price; changing costs for and availability of required goods
and services; regulatory changes; risks relating to disagreements
or disputes with joint venture partners, including any failure of a
joint venture partner to fund its obligations; volatility in market
prices for oil and natural gas; 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, geological, technical,
drilling and processing problems, 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 the
Company will be able to access infrastructure in the vicinity of
its projects 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 its projects 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.