VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 2, 2013) -
Terrace Energy Corp. (the "Company") (TSX
VENTURE:TZR)(OTCQX:TCRRF)(FRANKFURT:2TR) is pleased to announce
continuing success in its horizontal drilling program on its STS
Olmos Project in South Texas, USA with its partner, BlackBrush Oil
& Gas LP. Its latest horizontal well, the STS AW A1-17H well,
was drilled to a measured depth of 14,215 feet, including a
horizontal section of approximately 4,300 feet in the target
interval and was successfully fracture stimulated in 18 stages.
After less than 5% load recovery, the well is stabilizing at a
rate of approximately 627 BOPD (barrels of oil per day) and 2.6
MMCFD (million cubic feet per day) of liquid rich gas. All of the
wells in this project will be tied into the wet gas gathering
system located on the STS Project and delivered into a high
efficiency natural gas liquids extraction plant. Based on the
current test rate, liquids recoverable through the extraction plant
are expected to effectively increase this well's revenue stream to
over 1200 BOEPD* (barrels of oil equivalent per day). There can be
no assurance that the flow rate will stabilize at current or higher
levels over time.
This well is the sixth successful completion in the Company's
STS project and is testing at rates consistent with the previously
announced completions. The most recent well, the SP5 1-16H,
announced in September has accumulated over 27,000 BOE* in its
first 30 days of production. Terrace holds a 33.33% working
interest and a 25.00% net revenue interest in the SP5 1-16H.
Drilling operations have successfully concluded on the final
well of the 2013 program, the SP5 AW A1-27H. Fracing and completion
operations are scheduled to begin early this month. Based on the
success of the 2013 delineation program, the Company and its
partner are currently formulating plans for an aggressive
development plan to begin in early 2014.
Terrace holds a 16.67% working interest and a 12.50% net revenue
interest in the STS AW A1-17H and a 37.20% working interest and a
27.90% net revenue interest in the SP5 AW A1-27H.
As previously reported, Terrace purchased an average 26.88%
working interest and a 20.16% net revenue interest in approximately
14,400 gross acres (3,875 net acres) in the STS Project. The
project acreage has the potential to support approximately 60
offset drilling locations.
Dave Gibbs, the Company's President, commented: "This latest
well continues to demonstrate the consistency and repeatability of
the STS Project's productive capabilities. The 2013 drilling
program continues to produce outstanding success in defining the
long-term reserve potential for this project."
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, 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.
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: expected flow rates from wells described above;
scheduled fracing and completion operations; the effects of the
natural gas liquids extraction plant on revenue streams and
information regarding the development of each 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 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 Project will continue as projected, that the Company
will be able to access infrastructure in the vicinity of the STS
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 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.