Terra Energy Announces Agreement to Sell Montney Assets for $36 Million
CALGARY, ALBERTA -- (Marketwired) -- 06/04/13 -- Terra Energy Corp.
(TSX:TT) ("Terra" or the "Company") is pleased to announce that Crew
Energy Inc. ("Crew") has exercised the option to purchase the balance
of Terra's Montney assets in northeast British Columbia for a
purchase price of $36 million.
On February 28, 2013, the Company granted Crew an option to acquire
the balance of its unconventional Montney assets located in northeast
British Columbia for a purchase price of $36 million, subject to
typical industry adjustments, by way of a combination of cash or
common shares of Crew, with a minimum cash component of $10 million.
The option contained restrictions on assignment and had to be
exercised by Crew on or before June 3, 2013, with a closing to occur
on or before July 9, 2013.
On June 3, 2013, Crew elected to exercise its option to purchase the
balance of Terra's Montney assets. The companies have also entered
into a fully executed purchase and sale agreement in respect of this
sale. Crew will have until 10 days prior to closing in order to
notify Terra of the combination of cash and shares comprising the
purchase price, providing that the purchase price includes a minimum
cash component of $10 million.
Terra intends to utilize the net proceeds from this sale to further
reduce its indebtedness. Terra's production and cash flow will remain
unchanged as a result of this sale as the assets included in this
transaction have no current production attributed to them.
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 closing date of the asset sale and net
proceeds from the sale will be utilized by the Company to reduce
Terra's indebtedness. Although Terra believes that the expectations
reflected in our forward-looking statements are reasonable, our
forward-looking statements have been based on expectations, factors
and assumptions concerning future events which may prove to be
inaccurate. Those expectations, 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.
Terra Energy Corp.
Vice President of Finance & Chief Financial Officer
Terra Energy Corp.
Manager, Corporate Affairs
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