New book by Larry Connors Click here Improve your trading - See how
Second Quarter 2009 Highlights
- Average production per day increased 58.5 percent to 5,412 barrels of oil equivalent ("boe") per day compared to 3,414 boe per day in the second quarter 2008.
- During the second quarter, the Company generated positive cash flow from operations of $4,794,358 ($0.06 per basic and diluted share) and an operating netback of $13.70 per boe.
- Gross revenue for the second quarter 2009 decreased 42.1 percent to $12,050,351 from $20,807,645 in the same period of 2008. The decrease was largely attributable to falling natural gas prices.
- Production expense decreased by 38.6 percent to $7.42 per boe in the second quarter 2009 compared to $12.08 per boe during the same period in 2008.
- On June 19, 2009, Terra Energy announced the closing of the acquisition of Tecton Energy Canada ULC for total consideration of $8 million comprised of $4 million cash and $ 4 million of common shares of the Company.
- During the second quarter, the Company announced its intention to acquire approximately 2,200 boe per day of production, 8.5 million boe of proved plus probable reserves and 46,000 net acres of undeveloped land for total consideration of approximately $76.6 million, prior to closing adjustments (the "Peace River Arch Acquisition"). The Peace River Arch Acquisition was closed subsequent to the second quarter on July 15, 2009.
- Concurrent with the announcement of the Peace River Arch Acquisition, the Company announced a bought-deal equity financing which closed subsequent to the second quarter on July 7, 2009 and resulted in gross proceeds of $20.3 million.
"With the closing of the Peace River Arch Acquisition, Terra Energy has begun its transformation to a more balanced intermediate producer." stated Cas Morel, President & CEO of Terra Energy, "I am satisfied with our performance year-to-date given the condition of the current operating environment. However, I remain concerned about the many challenges facing natural gas producers in Canada, including limited access to capital markets, a tightening supply of credit, a persistently high Canadian dollar, and most importantly, the uncertainty regarding supply and demand for, and the pricing competitiveness of, natural gas in western Canada. Despite these concerns, I continue to believe that Terra Energy is well positioned to face these challenges and take advantage of the opportunities presented by the current downturn in markets."
Terra Energy is a junior oil and gas company engaged in the exploration for, and development and production of, natural gas and oil in Western Canada. Terra Energy's common shares trade on the Toronto Stock Exchange under the symbol 'TT'.
READER ADVISORY
All amounts in Canadian dollars unless otherwise specified
A BOE conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency for the individual products at the wellhead. Such disclosure of BOE's may be misleading, particularly if used in isolation.
This media release contains certain statements which constitute forward-looking statements or information, including Terra Energy's transformation to an intermediate producer, the positioning of the Company to face challenges and take advantage of opportunities in current markets. Although Terra Energy believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. Risks include, but are not limited to: the risks associated with the oil and gas industry (eg., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in more detail in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements or information contained in this document are made as of the date of this document and, except as required by applicable law, Terra Energy does not undertake any obligation to publicly update or to revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise. The forward-looking statements or information contained in this document are expressly qualified by this cautionary statement.
SOURCE: Terra Energy Corp.
Terra Energy Corp. Dean N. Morrison, CFA Manager, Corporate Affairs (403) 699-7777 Website: www.terraenergy.ca
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
