Terrace Energy Announces First Half Results

VANCOUVER, Oct. 3, 2013 /CNW/ - Terrace Energy Corp. (the "Company") (TSXV: TZR; OTCQX:TCRRF; FRANKFURT:2TR) is pleased to announce its financial and operating results for the six and three months ended July 31, 2013.

The Company's interim financial statements and management discussion and analysis for the six and three months ended July 31, 2013 is available for viewing at www.sedar.com and on the Company's website at www.terraceenergy.net.

All dollar amounts are expressed in United States dollars unless otherwise stated.

First Half Achievements

  • Finalized transactions to organize the Black Brush Terrace LP and acquire an interest in a 147,000 acre project in South Texas from an affiliate of Shell Oil.
  • Completed non-brokered private placements of convertible notes in the aggregate amount of CDN$40,000,000.
  • Drilled the first well on the Black Brush Terrace LP property to a total measured depth of approximately 12,000 feet including an approximate 4,000 foot horizontal lateral section in the Pearsall Shale. The well is in the completion stage of development.
  • Successfully re-entered and placed into production a previously drilled Eagle Ford Shale well on the Black Brush Terrace LP property.
  • Drilled four additional wells on the STS Olmos project. Two of the wells were subsequently placed into production and the remaining two are in the completion stage of development.

First Half Highlights

  • Total revenues from oil and gas sales for the six and three months ended July 31, 2013 were $1,621,660 and $765,958 respectively compared to $759,958 and $202,868 for the six and three months ended July 31, 2012 respectively.
  • The Company's aggregate share of production from the STS Olmos wells and the Cutlass well for the six months ended July 31, 2013 was approximately 17,877 barrels of oil and liquids at an aggregate average price of $83.60 per barrel of oil equivalent and 28,308 thousand cubic feet of natural gas at an average price of $4.05 per million cubic feet.

Financial Summary

Results of operations (unaudited) for the six and three months ended July 31:

  Six
Months
2013
Six
Months
2012
Three
Months
2013
Three
Months
2012
                 
Oil & Gas revenues $  1,621,660 $  759,958 $   765,649 $  202,868
                 
Direct operating expenses   248,839   120,824   60,510   55,382
Depreciation, depletion and accretion   493,531   18,468   220,773   12,949
    742,370   139,292   281,283   68,331
  Operating income   879,290   620,666   484,366   134,537
Equity income in Black Brush Terrace LP   35,909   -   35,909   -
    915,199   620,666   520,275   134,537
                 
General and administrative expenses   1,301,344   595,336   778,838   366,648
Interest expense   1,033,125   -   833,938   -
Foreign exchange gain   (761,051)   (92,687)   (794,843)   (61,644)
Share-based payments   304,194   146,020   231,077   70,289
Impairment of exploration and evaluation assets   73,983   -   -   -
Recovery of exploration and evaluation assets   -   -   (30,167)   -
    1,951,595   648,669   1,018,843   375,293
Net loss for the period $  (1,036,396) $  (28,003) $  (498,568) $  (240,756)
Loss per share $  (0.02) $  (0.00) $  (0.01) $  (0.00)

Summary Balance Sheet   July 31,
2013
  January 31,
2013
         
Current assets $  17,715,920 $  3,050,989
Operators bond   25,000   25,000
Investment in Black Brush Terrace LP   12,900,434         -
Advances for future exploration   1,890,819   459,008
Exploration and evaluation assets   10,878,981   6,737,039
Property and equipment      9,615,819      6,047,528
Total assets   53,026,973   16,319,564
Total liabilities   35,700,161   579,601
Total equity $  17,326,812 $  15,739,963

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, particularly in South Texas.

ON BEHALF OF THE BOARD OF DIRECTORS

Eric Boehnke, Chief Executive Officer

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.

SOURCE: Terrace Energy Corp.

For further information:

terrace@terraceenergy.net

Profil de l'entreprise

Terrace Energy Corp.

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