TCRRF Terrace Energy Corporation (CE)

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.