Terra Energy Corp. is pleased to announce that the initial portion of the $78.0 million Montney sale transaction was successfully completed on December 14, 2012 for a cash consideration of $22.0 million, plus adjustments, for the Company's Montney assets located in Monias and Groundbirch, British Columbia. Proceeds received have been utilized by the Company to reduce its total indebtedness including the reduction of the Company's credit facility to $70.0 million.
The second portion of the transaction consists of the granting by Terra to the purchaser of an option to purchase the remaining approximately 123 net sections of Montney assets in northeast British Columbia for a purchase price of $56.0 million, including the Company's Farrell Creek, Altares, Attachie and Hudson areas. The purchase price may include a combination of cash and shares of the purchaser, at the discretion of the purchaser, provided that the consideration must include a minimum of $20.0 million in cash. The purchaser has been granted the alternative option to acquire only the Company's Montney assets located in the Attachie area, which consist of approximately 31 net sections, for a purchase price of $20.0 million in cash. The two alternative options remain exercisable by the purchaser on or before March 15, 2013.
Additionally, the Company has completed or is scheduled to complete various minor asset transactions with various purchasers in the Karr area of Alberta, Steelman area of Saskatchewan and Inga area of British Columbia, for total consideration of approximately $2.7 million in cash, making up the remainder of the originally announced transaction opportunities totaling in excess of $80.0 million referenced in our media release on November 6, 2012. The lands sold in the Karr area of Alberta were facing upcoming expiries early in 2013. Terra still owns approximately 45 net sections of lands having potential in both the Duvernay and Montney formation in the Karr and North Ante Creek areas of Alberta.
Terra's production base will be kept intact, as the above mentioned asset transactions have associated production of only approximately 50 boe/d . Additionally, Terra will continue to own over 350,000 net acres of undeveloped land. In conjunction with the completion of these asset dispositions, the Company's senior lenders have granted a further extension to the Company's credit facility until January 31, 2013. 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'.