CALGARY, ALBERTA--(Marketwire - June 29, 2012) - Terra Energy Corp. ("Terra" or the "Company") (TSX:TT) announces that in agreement with its Syndicate of Lenders (the "Syndicate"), including the Canadian Imperial Bank of Commerce and ATB Financial, it will extend its current banking facility (the "Facility") through to August 31, 2012.
The terms of the Facility require that an annual review take place by June 29, 2012. The Facility has been extended through to August 31, 2012 to allow for the advancement of marketing processes that have been initiated by the Company in relation to various packages of assets. Terra and its advisors continue to actively market three major asset packages, including certain of the Company's undeveloped lands in west-central Alberta and the Company's Alberta Peace River Arch assets. Proceeds from the sale of these asset packages will be used to reduce debt and strengthen the Company's balance sheet. In addition, efforts by the Company are continuing in relation to the marketing of the Company's unconventional Montney assets located in British Columbia, consisting of more than 130,000 net acres of Montney mineral rights, including the search for a potential joint venture partner or an outright sale.
Terra is a junior oil and gas corporation engaged in the exploration for, and development and production of, natural gas and oil in Western Canada. Terra's common shares trade on the Toronto Stock Exchange under the symbol 'TT'.
All amounts in Canadian dollars unless otherwise specified.
This media release may contain certain statements which constitute forward-looking statements or information ("forward-looking statements") including the extension of the lending facility, the continued marketing of its three assets packages including the search for a potential joint venture partner or an outright sale, and the use of the proceeds from the asset sales to pay down debt. Although Terra 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 available to the Company. 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 statements. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Terra does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.