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2011 news releases

VANCOUVER, BRITISH COLUMBIA--(June 13, 2011) - Terrace Resources Inc. (TSX VENTURE:TZR.P) ("Terrace" or the "Company") is pleased to announce that all conditions under the farm out agreement by and between the Company's wholly-owned subsidiary, Terrace Operating, LLC and Eagle Energy Development Company have been removed or waived and work over operations on the "Patos Gas Unit #1" well are expected to commence within 60 days. Terrace is entitled to earn up to an 87.5% working interest and 65.1875% net revenue interest in certain oil gas leases referred to as the "Los Patos Gas Unit" in the Tailfeathers Yegua field in Wharton County Texas, by successfully fracture-stimulating an existing well.
Details of the transaction are contained in the Company's Filing Statement dated May 31, 2011, filed under the Company's profile on www.sedar.com.
Changes in Board and Management
Upon completion of the Qualifying Transaction David Boehm resigned as a director of the Company and William McCartney stepped down as Chief Executive Officer and Chief Financial Officer of the Company.
Eric Boehnke and David Gibbs have been appointed directors and Eric Boehnke as Chief Executive Officer of the Company. Jennie Choboter is the Chief Financial Officer of the Company.
The Board of Terrace now comprises Eric Boehnke, William McCartney, David Gibbs and Murray Oliver.
Private Placement
The previously announced non-brokered private placement of 10 million units at a price of $0.09 per unit (each unit comprising one common shares and one share purchase warrant exercisable to acquire one additional common share at a price of $0.18 per share for a period of five years) is expected to close on or before June 17, 2011, subject to regulatory approval. The proceeds of the private placement will be used together with the Company's existing working capital to fund the development of the Los Patos Gas Unit and for general working capital purposes.
As disclosed in the Filing Statement directors and officers of the Company will acquire securities under the private placement. Such participation is considered to be a related party transaction under Multilateral Instrument 61-101. The transaction will be exempt from minority shareholder approval as neither the fair market value of any securities issued to or the consideration paid by such persons will exceed 25% of the Company's market capitalization. In addition to applicable statutory hold periods, the securities issued to directors and officers pursuant to the private placement will be subject to escrow in accordance with the policies of the TSX Venture Exchange.
Grant of Options
A total of 1,950,000 incentive stock options have been granted to directors and officers, of the Company pursuant to the Company's Stock Option Plan. The options are exercisable for a period of five (5) years at a price of $0.12 per share.
Forward-looking Information
Readers are cautioned that this news release includes forward-looking statements or information which is based on certain assumptions and subject to risks and uncertainties as described under the same heading below.
Bill McCartney, Director
Forward looking information
Certain statements contained in this news release, such as anticipated timing of commencement of operations under the farmout agreement and closing of the private placement constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that no unforeseen delays, including but not limited to permitting or equipment procurement delays, and delays in obtaining third party or regulatory approvals are encountered as well as that the Company's the financial condition and development plans do not change as a result of unforeseen events. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, and that the Company's financial condition and development plans change, as well as the other risks and uncertainties applicable to oil and gas exploration, development and production activities and to the Company as set forth in the Company's Filing Statement in respect of its Qualifying Transaction filed under the Company's profile at www.sedar.com . The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Contact Information

  • Terrace Resources Inc.
    Murray Oliver