VANCOUVER, Dec. 19, 2016 /CNW/ - Terrace Energy
Corp. (the "Company" or "Terrace") (TSXV: TZR,) provides
the following update to stakeholders of the Company.
Maverick County Project
The Company and its partner have recently drilled and completed
two successful Eagle Ford Shale wells on the 147,000 acre Maverick
County Project. The Chittim Heirs #11H and Chittim Heirs #12H were
both drilled from the same surface location with horizontal lateral
lengths of approximately 4,800' into the Lower Eagle Ford Shale.
The wells were completed with 21 and 20 stages of hydraulic
fracturing using approximately 200,000 barrels of water and 10
million pounds of sand per well. Flowback operations are currently
underway. Initial results are encouraging with the wells making a
combined rate of over 1,100 BOPD. After 30 days of flowback, the
wells have recovered over 10,000 barrels of oil and 34% of their
total load water.
The Company will continue to monitor these early results and
will formulate a strategy for optimizing the value of its
investment in due course. The successful completion of the
Chittim Heirs #11H and #12H wells will significantly enhance the
value of the Maverick County Project. The Company plans to review
and consider all alternatives for securing the additional capital
required to fund the Company's future obligations including, but
not limited to, the sale or partial sale of its interest in the
Project.
Olmos Project
In a series of recent transactions, the Company divested its
remaining assets in McMullen and
LaSalle Counties, Texas allowing it to eliminate significant
liabilities and contractual obligations. In connection with these
transactions, the Company received US$1.5
million in cash.
Outlook
Over the past several months, the Company has been focused on
the preservation of capital and the elimination of near-term
liabilities and contractual obligations as we have monitored the
commodities market. Since it now appears that the time frame in
which oil prices will sufficiently recover to warrant large scale
exploration in South Texas remains
unclear, Management intends to shift its strategic focus from the
acquisition and development of grass-roots exploration projects to
large-scale project management, whereby the Company would partner
with third-party private equity providers to opportunistically
acquire, reorganize, if necessary, and develop distressed assets or
assets that are no longer core to other oil & gas
companies. To that end, the Company is currently holding
discussions regarding such opportunities with a number of
interested parties. There are, however, no assurances the Company
will successfully conclude a transaction in the near-term or at
all.
Throughout the adverse changes in circumstances that resulted
from decreased oil prices, the Company has been able to retain key
technical personnel by successfully securing third party management
and consulting contracts. This has allowed us to keep our core team
intact to facilitate our planned shift in strategic focus without
significant carrying costs.
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
For further information please
contact: terrace@terraceenergy.net
SOURCE Terrace Energy Corp.