VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 19, 2013) - Terrace Energy Corp. (the "Company") (TSX VENTURE:TZR)(OTCQX:TCRRF)(FRANKFURT:2TR) is pleased to provide the following operations update.
Maverick County Pearsall Project
The Company and its partner, BlackBrush Oil & Gas LP, are in the process of forming a limited partnership, BlackBrush Terrace LP, to earn a 50% operated working interest in approximately 147,000 acres, principally in Maverick County in the emerging Pearsall Shale Trend in South Texas. The first well, Chittim 1-H, was successfully drilled to a total measured depth of approximately 12,000 feet including an approximate 4,000 foot of horizontal lateral section in the Pearsall Shale. Five and one-half inch casing was successfully installed and preparations are underway to complete the well by multi-stage fracture stimulation. Fluids and equipment are presently being staged and the Company anticipates initiating completion operations before the end of the month, pending equipment availability. An additional Pearsall Shale well is scheduled to be drilled later this year.
STS Olmos Project
The first well in our STS Olmos 2013 drilling program (SP5 1-2H) was successfully drilled to a total measured depth of approximately 12,425 feet and our target objective was encountered. The well was successfully completed using "Gas Frac" technology in which a gelled hydrocarbon carrier fluid is substituted for traditional water based carrier fluids. Ten stages of "Gas Frac" were executed and the well is currently undergoing flowback testing. Test results will be announced once the well has stabilized. The completion of the SP5 1-2H will be the fourth well brought onto production on the STS Olmos project to date.
The Company plans to participate in five additional wells in 2013. Rig mobilization operations are underway in preparation for spudding the SP5 1-16H. This rig will remain in the field to drill two additional wells. A second rig is scheduled to arrive later this month to drill the final two wells (the SP5 1-17H and 1-6H). Two of the wells will also be vertical pilot holes through the base of the Olmos section to acquire extensive petrophysical and core information prior to turning the well horizontal in the Olmos. The Company anticipates completion of the 2013 drilling program late in the third quarter.
Cutlass Project
The planned 2013 program is underway. The Cutlass West A-1 was successfully completed with a 15 stage fracture stimulation treatment in the Eagle Ford Shale. The well is currently undergoing extensive flowback testing using the recently adopted limited choke approach in an effort to create a more sustainable long-term production profile. The well continues to strengthen, gaining approximately 50% increase in flowing pressure over the past 30 days. The well is currently being prepared for running production tubing later this month. Sustained results will be announced when appropriate.
The Cutlass East B-2 well and the Cutlass West B-2 have both been successfully drilled to their planned total measured depths including horizontal lateral sections in the Lower Eagle Ford Shale of 5,700 feet and 4,900 feet respectively. Five and one-half inch casing has been successfully installed. Completion operations are expected to commence in the third quarter. Completion of the East B-2 and West B-2 wells will complete fulfillment of the Company's obligations under the project participation agreement in order to perfect its interest in the underlying leasehold interests in the Cutlass Project. Hence the Company will earn 30% working interest in 3,395 gross mineral acres (1,018 net acres) as to all depths.
Eric Boehnke, Company CEO commented, "We are pleased with the results to date of the Company's aggressive execution strategy. We have made significant progress on each of our major project areas and are well underway to accomplish all of our 2013 goals and objectives ahead of schedule. Results to date continue to exceed our expectations and point to continuing improvements in performance and asset value recognition. We look forward to announcing individual well results as each become available."
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
Eric Boehnke, Chief Executive Officer
Forward-Looking Information:
This press release includes "forward-looking information" within the meaning of applicable Canadian securities laws, including information regarding the development of each project and the timing thereof and the timing for flowback operations and production for the Cutlass Project. 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 Maverick County, STS and Cutlass Projects 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. 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 Maverick County, STS and Cutlass 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 the Maverick County, STS and Cutlass 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. 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.
