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2013 news releases

Terrace Energy Announces First Half Results

Vancouver, B.C., October 3, 2013 - Terrace Energy Corp. (the “Company”) (TSXV: TZR; OTCQX:TCRRF; FRANKFURT:2TR) is pleased to announce its financial and operating results for the six and three months ended July 31, 2013.

The Company’s interim financial statements and management discussion and analysis for the six and three months ended July 31, 2013 is available for viewing at www.sedar.com and on the Company’s website at www.terraceenergy.net.

All dollar amounts are expressed in United States dollars unless otherwise stated.

First Half Achievements

  • Finalized transactions to organize the Black Brush Terrace LP and acquire an interest in a 147,000 acre project in South Texas from an affiliate of Shell Oil.
  • Completed non-brokered private placements of convertible notes in the aggregate amount of CDN$40,000,000.
  • Drilled the first well on the Black Brush Terrace LP property to a total measured depth of approximately 12,000 feet including an approximate 4,000 foot horizontal lateral section in the Pearsall Shale. The well is in the completion stage of development.
  • Successfully re-entered and placed into production a previously drilled Eagle Ford Shale well on the Black Brush Terrace LP property. 
  • Drilled four additional wells on the STS Olmos project. Two of the wells were subsequently placed into production and the remaining two are in the completion stage of development.

First Half Highlights

  • Total revenues from oil and gas sales for the six and three months ended July 31, 2013 were $1,621,660 and $765,958 respectively compared to $759,958 and $202,868 for the six and three months ended July 31, 2012 respectively.
  • The Company’s aggregate share of production from the STS Olmos wells and the Cutlass well for the six months ended July 31, 2013 was approximately 17,877 barrels of oil and liquids at an aggregate average price of $83.60 per barrel of oil equivalent and 28,308 thousand cubic feet of natural gas at an average price of $4.05 per million cubic feet.

Financial Summary

Results of operations (unaudited) for the six and three months ended July 31:   

 

Six
Months
2013

Six
Months
2012

Three
Months
2013

Three
Months
2012

 
Oil & Gas revenues
$1,621,660
$759,958
$765,649
$202,868
 
 
 
 
 
 
Direct operating expenses
248,839
120,824
60,510
55,382
Depreciation, depletion and accretion
493,531
18,468
220,773
12,949
 
 
742,370
139,292
281,283
68,331
 
      Operating income
879,290
620,666
484,366
134,537
Equity income in Black Brush Terrace LP
35,909
-
35,909
-
 
 
915,199
620,666
520,275
134,537
 
 
 
 
 
 
General and administrative expenses
1,301,344
595,336
778,838
366,648
Interest expense
1,033,125
-
833,938
-
Foreign exchange gain
(761,051)
(92,687)
(794,843)
(61,644)
Share-based payments
304,194
146,020
231,077
70,289
Impairment of exploration and evaluation assets
73,983
-
-
-
Recovery of exploration and evaluation assets
-
-
(30,167)
-
 
 
1,951,595
648,669
1,018,843
375,293
 
Net loss for the period
$(1,036,396)
$(28,003)
$(498,568)
$(240,756)
 
Loss per share
$(0.02)
$(0.00)
$ (0.01)
$(0.00)
 

 

 Summary Balance Sheet
July 31, 2013
January 31, 2013

 
 
 
Current assets
$17,715,920
$3,050,989
Operators bond
25,000
25,000
Investment in Black Brush Terrace LP
12,900,434
-
Advances for future exploration
1,890,819
459,008
Exploration and evaluation assets
10,878,981
6,737,039
Property and equipment
9,615,819
6,047,528
 
Total assets
53,026,973
16,319,564
Total liabilities
35,700,161
579,601
 
Total equity
$17,326,812
$15,739,963

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, particularly in South Texas.

ON BEHALF OF THE BOARD OF DIRECTORS

Eric Boehnke, Chief Executive Officer

For further information please contact:
terrace@terraceenergy.net

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.