Terrace announces further outstanding results for its 2013 drilling program on its STS Olmos Project

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"

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.

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.

 

SOURCE: Terrace Energy Corp.

[email protected]
www.terraceenergy.net

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