VANCOUVER, Oct. 15, 2014 /CNW/ - Terrace Energy Corp. (the "Company") (TSXV: TZR, OTCQX: TCRRF, FRANKFURT: 2TR) is pleased to report Initial Production test results of 986 boepd from its first well, the Quintanilla OL 1H, on its NW AWP Project.
The well was connected to well test equipment for flow back operations on October 10. The well was tested for approximately 76 hours on various choke sizes with a maximum reported flow rate of 744 bopd and 1,452 mcfd (986 boepd) on a 22/64 inch choke with a flowing casing pressure of 2,700 psi. There can be no assurance the well will continue to flow at this rate in the future.
The well was drilled to a total measured depth of 13,555 feet, including a 4,286 foot lateral section into the Olmos sandstone formation and was fracture stimulated in twelve stages.
The Company, through its wholly owned subsidiary Terrace STS, LLC, holds a 33.34% working interest in the well and approximately 200 gross mineral acres that surrounds the well. The Company also has the option to extend its 33.34% working interest to adjacent mineral leases that cover approximately 3,400 additional gross mineral acres.
Dave Gibbs, the Company's President and CEO, stated "We are extremely pleased with the early results of this well, which validates our strategy to expand our area of interest in the Olmos formation across McMullen and LaSalle Counties. The results of the Quintanilla well compare very favorably with the development wells we are drilling on our STS Olmos Project approximately 20 miles southwest of this well."
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, 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.
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 plans for the development of the Company's projects and the timing thereof, including the potential number of drilling locations on the STS Olmos Development Project and expectations regarding achieving key successes and milestones over the next several months. Users of forward-looking information are cautioned that actual results may vary materially 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 its projects at a reasonable price; changing costs for and availability of required goods and services; regulatory changes; risks relating to disagreements or disputes with joint venture partners, including any failure of a joint venture partner to fund its obligations; volatility in market prices for oil and natural gas; 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, geological, technical, drilling and processing problems, 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 the Company will be able to access infrastructure in the vicinity of its projects 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 its projects 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: [email protected]; www.terraceenergy.net; Canadian Address: Suite 1012-1030 W Georgia St., Vancouver B.C. V6E 2Y3, Ph: 604 282-7897, Fax: 604 629-0418; US Address: Suite 400-202 Travis Street, Houston, Texas 77002, Ph: 713 227-0010