VANCOUVER, March 17, 2014 /CNW/ - Terrace Energy Corp. (the "Company") (TSXV: TZR, OTCQX: TCRRF; FRANKFURT: 2TR) is pleased to announce it has completed drilling operations on the first well of its 2014 development drilling program for its STS Olmos Project.
The first well, the STS 1-4H, was spud at the end of February and drilled to a measured depth of 13,420 feet, including 4,642 feet of horizontal section in the targeted Olmos "C" Sand. The target interval was encountered as planned and logging results indicate that the pay interval is entirely consistent with the previous eight wells drilled to date. This well is an offset to the highly successful initial discovery well for the project, the STS 1-667H, which has produced in excess of 125 thousand barrels of oil equivalent in approximately two years from its completion in February, 2012.
Based on the drilling results to date widely spaced across the project's approximate 20,000 gross acres, the Company estimates that there are approximately 140 gross drilling locations within the current leasehold position. The Company holds an approximate 27% working interest and 20.25% net revenue interest in the project. The Company and its partner, Black Brush Oil & Gas, LP, are planning to initiate a pad drilling program in the second quarter to drill twelve additional development wells during the calendar year.
The Company plans to install production facilities and gas pipeline connections prior to completing the well in order to minimize costs and time to market. Frac work will begin on the STS 1-4H as soon as such facilities are in place with first sales expected immediately after flow-back testing is completed. The Company plans to employ this same strategy to minimize costs and optimize time to market on all subsequent development wells in the project.
George Morris, the Company's Chief Operating Officer, stated "We are extremely pleased with the drilling results of the STS 1-4H. These drilling results are consistent with the geological model we have developed for the STS Olmos project and add further support to our conviction that the project comprises a large, repeatable inventory of low-risk, high value drilling locations."
About Terrace Energy
Terrace Energy is an oil & gas development stage company that is focused on unconventional oil & gas extraction in onshore areas of the United States, particularly in South Texas.
ON BEHALF OF THE BOARD OF DIRECTORS
Dave Gibbs, 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.
| This press release includes "forward-looking information" within the meaning of applicable Canadian securities laws, including information regarding the expected productivity of the STS 1-4H well, the further development of the STS 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 the STS Project 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 the expected productivity of the STS 1-4H well and future planned wells. 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. 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 West Georgia St.
Vancouver B.C. V6E 2Y3
Ph: 604 282-7897
Fax: 604 629 0418
Suite 407-200 Travis Street,
Houston Texas 77002