VANCOUVER, Dec. 2, 2013 /CNW/ - Terrace Energy Corp. (the "Company" or "Terrace") (TSXV:TZR, OTCQX:TCRRF, FRANKFURT:2TR) is
pleased to announce that the BlackBrush Terrace LP ("BBTLP") has
successfully drilled and completed its first well (the "Chittim Heirs
2-H" well) in the Eagle Ford Shale formation on its 147,000 acre
Maverick County Project.
Chittim Heirs 2-H was drilled to a total depth of 9,389 feet, including
a 4,100 foot horizontal lateral section, in the Lower Eagle Ford Shale.
The well was completed in 15 stages using hydrocarbon-based hydraulic
fracturing fluids. During the first 15 days of flow-back testing,
using 5 ½" casing, the well produced more than 11,500 barrels of oil,
which is approximately 765 barrels of oil per day, and minor amounts of
associated gas. There can be no assurance that the flow rate will
stabilize at current levels over time.
This successful use of hydrocarbon-based fracturing fluids represents a
significant advancement in the development of the Eagle Ford Shale in
the "black oil" window, which is defined by low gas-oil ratios found in
the northern extension of the formation. Previous attempts, by other
industry participants to develop commercial production in the black oil
window of the Eagle Ford Shale, were made using high volume water-based
fracturing fluids. This technique has generally not been commercially
successful, despite the formation's rock properties and hydrocarbon
content, because the formation's shallow depth and lower reservoir
pressure make it difficult to recover and unload the large volumes of
water used. Testing results to date indicate excellent formation
productivity and there is no evidence that water resides within the
BBTLP has now logged over 150 feet of Lower Eagle Ford Shale in each of
two wells including the previously announced Chittim 1-H well and has
established commercial hydrocarbon production in two wells including
the previously announced successful re-entry of the Chittim F-1H well.
BBTLP now has three strong data sets ranging over 10 miles that exhibit
similar petrophysical and hydrocarbon characteristics associated with
some of the most productive regions within the Eagle Ford area of South
Texas. These data sets will assist BBTLP in advancing the future
exploration and development of the Eagle Ford Shale potential on its
Maverick County Project.
Dave Gibbs, the Company's Chief Executive Officer commented: "We are
very pleased with the results of the Chittim Heirs 2-H well to-date.
Such results, together with the successful re-entry of the Chittim F-1H
well, demonstrate we can successfully develop oil production from the
Eagle Ford formation on the Maverick County Project. This creates a
significant new opportunity for the Company."
BBTLP is currently finalizing drilling plans and budgets to move
aggressively forward in the Eagle Ford Shale and evaluate other high
potential formations including the Buda Limestone, the Pearsall Shale,
Glenrose, and Georgetown formations on the Maverick County Project.
About the Maverick County Project
BBTLP has the right to acquire, through a farm out agreement, a 50%
working interest in the Maverick County Project, which comprises
certain oil and gas leases covering approximately 147,000 net mineral
acres in South Texas. The acreage includes potential reserves in the
newly emerging Pearsall Shale Trend as well as the Eagle Ford Shale,
Buda Limestone and several other intervals of Cretaceous age formations
which have been proven productive on a regional basis.
About Terrace Energy
Terrace is an oil & gas development stage company that is focused on
unconventional oil extraction in onshore areas of the United States.
Terrace holds, indirectly, a 50% partnership interest in BBTLP as well
as varying working interests, through its operating subsidiaries, in
other projects in South Texas.
ON BEHALF OF THE BOARD OF DIRECTORS
Dave Gibbs, 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.
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