VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 12/31/12 — Terrace Energy Corp. (TSX VENTURE: TZR) (the “Company” or “Terrace”) is pleased to announce its financial and operating results for the third quarter ended October 31, 2012.
The Company–s interim financial statements and management discussion and analysis for the three and nine months ended October 31, 2012 is available for viewing at and on the Company–s website at .
Third Quarter Achievements
Third Quarter Highlights
Other Matters
Two prospective wells on the Company–s Cutlass project were drilled to targeted vertical depths and a horizontal leg was completed on one of the wells during the second quarter. The Company is pleased with the technical information gathered to-date. The project operator has developed a fracture stimulation plan for one of the wells, which has now been scheduled for the first quarter of 2013.
Eric Boehnke, the Company–s Chief Executive Officer commented: “We are very pleased with the success of the STS Olmos project to-date and with our team–s ability to generate new very prospective projects for future development. We are looking forward to placing the near completed well on the Cutlass project into production as soon as practical and further developing the potential of the field.”
Financial Summary
The Company generated oil and gas revenues of $332,000 and a loss of $212,000 ($0.00 per share) and revenues of $1,090,000 and a loss of $240,000 ($0.00 per share) for the three and nine months ended October 31, 2012 respectively.
As at October 31, 2012:
Outlook
It is expected that production volumes from the Company–s first well (STS 1-667) will remain stabilized over the next several quarters. The Company–s second and third wells (SP5 #1 and SP5 #2) will continue to generate flush production during the fourth quarter before experiencing a normalized decline in production volumes. The Company is finalizing its 2013 development schedule for the STS project with its operating partner. The Company expects to complete and bring into production one well on its Cutlass project during the first quarter of 2013. The Company–s additional development plans, which are presently being considered, are dependent upon its ability to generate profitable cash flow from operations and secure additional capital as required, neither of which is assured.
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. It currently has non-operating investments in two principal properties situated in Texas with targets in the “Olmos” and “Eagle Ford” formations and an option to acquire and develop, as operator, targets in the “Mississippi Lime” formation.
ON BEHALF OF THE BOARD OF DIRECTORS
Eric Boehnke, Chief Executive Officer
Forward-Looking Information:
This press release includes “forward-looking information”, including the revenue to be received from the Company–s wells and the time when the Company receives that revenue, the production rate of that well, the timing of exploration drilling and the potential for the Company–s projects to support additional drilling locations. 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, lack of availability of 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. 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 necessary goods and services will be available 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.
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.
Contacts:
Terrace Energy Corp.
Eric Boehnke
Chief Executive Officer
604-687-0888