Terra Energy Corp.is pleased to announce that the Company has closed on the sale of the balance of its Montney assets in northeast British Columbia to Crew Energy Inc. ("Crew") for gross cash proceeds of $36 million.
This is the final stage of a three part transaction with Crew involving the sale by the Company of its Montney assets in northeast British Columbia for combined gross proceeds of $78 million. The Company initially closed on the sale of Montney assets to Crew in December 2012, for gross proceeds of $22 million, which included Montney assets in Monias and Groundbirch. On February 28th, 2013 the Company completed the second stage of the transaction involving Montney assets located in Stoddart, Eagle and Attachie to Crew for $20 million gross proceeds. This third and final stage of the transaction involved Montney assets in Altares, Hudson and Mica but did not include any production.
Proceeds from this final stage, less standard industry adjustments and commissions, will be used to pay down debt and strengthen the Company's balance sheet. It is estimated that the Company's total net debt following closing is approximately $20 million. Terra's average daily production for the first quarter of 2013 was 4,469 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'.
For more information about related Opportunities and Key Players visit Shale Gas Projects