Terra Energy Releases Third Quarter 2011 Results
CALGARY, ALBERTA -- (Marketwire) -- 11/15/11 -- Terra Energy Corp. ("Terra" or the "Company") (TSX:TT) announces its financial and operating results for the three and nine month periods ended September 30, 2011. Copies of Terra's third quarter 2011 results may be obtained at www.sedar.com or www.terraenergy.ca.
Third Quarter Results:
-- The Company generated revenues of $17,800,000 on average daily production of 6,053 boe for the quarter, resulting in income before deferred taxes of $362,000 and a loss of $1,701,000 after deferred taxes. -- The Company generated cash flow from operations of $6,115,000 for the quarter compared to $6,605,000 for the same quarter last year.
Anticipated cash flow for 2011 is approximately $25.5 million and is based on an estimated average natural gas price of $3.75/mcf, an estimated oil price of $90.00/bbl and an average production rate of approximately 6,250 boe/d.
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.
A boe conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency for the individual products at the wellhead. Such disclosure of boe's may be misleading, particularly if used in isolation.
Forward Looking Statements
This media release may contain certain statements which constitute forward-looking statements or information ("forward-looking statements"). 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.
The information set out herein regarding the Company's forecasted cash flow from operations, including pricing assumptions and production rate is "financial outlook" within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Terra's reasonable expectations as to the anticipated results of its business activities for 2011. Readers are cautioned that this financial outlook may not be appropriate for other purposes.
Terra Energy Corp.
Vice President of Finance, & Chief Financial Officer
Terra Energy Corp.
Manager, Corporate Affairs