Terrace Announces Results of Latest Well
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 24, 2012) - Terrace Energy Corp. (TSX VENTURE:TZR) (the "Company") is pleased to announce early results from its latest horizontal well on its STS Project in Texas. The well was drilled to a measured depth of 13,865 feet, including a horizontal section of approximately 5,000 feet and was successfully fracture stimulated in 14 stages.
After less than 7% load recovery, the well continues to strengthen and is currently flowing at a rate of approximately 661 BOPD (barrels of oil per day) and 2.1 MMCFD (million cubic feet per day) of liquid rich gas or 1003 BOEPD(i) (barrels of oil equivalent per day). There can be no assurance that the flow rate will stabilize at current or higher levels over time.
This well's early performance exceeds that of the Company's initial discovery well on the STS Project, the results of which were announced in February, and is a step out of over five miles from the discovery well.
The Company is also in the initial flowback testing of its third well in the STS project and expects to report results in due course.
Terrace holds a 33.33% working interest and a 25.00% net revenue interest in each of these wells.
As previously reported, Terrace purchased an average 26.88% working interest and a 20.16% net revenue interest in approximately 14,400 gross acres (3,875 net acres) in the STS Project. The project acreage has the potential to support up to 60 offset drilling locations.
Dave Gibbs, the Company's President, commented: "We are very pleased with the results at this early stage of the project's development. The initial flow rate on each of our wells significantly exceeds our pre-project models and bodes well for the continued successful development of our acreage position."
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 two principal properties situated in South Texas with targets in the "Olmos" and "Eagle Ford" formations.
ON BEHALF OF THE BOARD OF DIRECTORS
Eric Boehnke, Chief Executive Officer
(i) BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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Terrace Energy Corp.