VANCOUVER, Oct. 30, 2013 /CNW/ - Terrace Energy Corp. (the "Company") (TSXV:TZR), (OTCQX:TCRRF), (FRANKFURT:2TR) is pleased to
announce a further successful completion from its 2013 delineation
horizontal drilling program on its STS Olmos Project in South Texas,
USA with its partner, BlackBrush Oil & Gas LP. The SP5 AW A1-27H well,
was drilled to a measured depth of 14,350 feet, including a horizontal
section of approximately 4,800 feet in the target interval and was
successfully fracture stimulated in 17 stages.
After less than 4% load recovery, the well is stabilizing at a rate of
approximately 654 BOPD (barrels of oil per day) and 1.4 MMCFD (million
cubic feet per day) of liquid rich gas.
This well marks the 8th straight successful completion of the Company's
STS project and is testing at rates consistent with the previously
announced completions, with 30 day IP rates averaging over 1000 BOEPD*.
These consistent, repeatable results validate the key objective of the
2013 delineation drilling program and confirms that the Olmos Sandstone
is capable of producing economically attractive drilling locations
across the majority of the Company's leasehold interests in this
project. There can be no assurance that the flow rate will stabilize at
current levels over time.
Terrace holds a 37.20% working interest and a 27.90% net revenue
interest in the SP5 AW A1-27H.
Drilling and completion operations have been successful on all of the
planned wells in the 2013 program. Based on the success of the 2013
delineation program, the Company and its partner have revised their
estimates of potential additional drilling locations to approximately
160 gross locations based on 80 acre spacing and are currently
formulating plans for an aggressive development plan to begin in early
2014. Terrace currently holds an average of approximately 33% working
interest and a 25% net revenue interest in approximately 15,600 gross
acres (5,105 net acres) in the STS Project.
Dave Gibbs, the Company's CEO, commented: "This latest well continues to
demonstrate the consistency and repeatability of the STS Project's
productive capabilities. The 2013 delineation drilling program has been
an outstanding success. Building on this, the 2014 program will be
focused on rapidly capitalizing on the success to date and aggressively
optimizing development costs as we move into the development phase of
this exciting program."
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, President & 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.
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.
SOURCE: Terrace Energy Corp.
For further information:
Suite 1012-1030 W Georgia St.
Vancouver B.C. V6E 2Y3
Ph: 604 282-7897 Fax: 604 629-0418
Suite 400-202 Travis Street,
Houston Texas 77002