Terrex Energy Inc. Provides Enhanced Oil Recovery Operations Update

CALGARY, Aug. 4, 2011 /CNW/ --
CALGARY, Aug. 4, 2011 /CNW/ - Terrex Energy Inc. ('Terrex' or 'Company') (TSX-V:  TER) announces updates on its enhanced
oil recovery (EOR) projects at Strathmore and Two Creek in Alberta.

The Strathmore Chemical Enhanced Oil Recovery program is proceeding on
schedule. The EOR facilities are being built in Wyoming and are over
90% complete, with certain metering equipment still to be delivered. 
Pending final testing, the facilities will be shipped to the site for
set up, likely in October, with chemical injection and the restart of
the water flood beginning near 2011 year end.  The Strathmore pool has
the potential for an estimated additional gross 3 million barrels at an
approximate 15% recovery with a chemical flood.

At Two Creek, an application for an EOR program on the A Pool has been
submitted to the Energy Resources Conservation Board.  Specialized
technical EOR analysis work has begun and cores have been delivered for
laboratory testing as a first step in determining the optimum EOR
plan.  The specific EOR design is expected to be determined by 2011
year end.  In addition, we are preparing to drill one and possibly two
wells to better develop the pool and add additional production prior to
implementing the EOR program.  The Two Creek pools have the potential
for an estimated additional gross 3 million barrels at 15% recovery
with chemical floods and optimizations.

The Strathmore and Two Creek properties are characterized by large
original oil-in-place reservoirs with relatively low recoveries to
date. We believe that optimization and enhanced oil recovery programs,
consistent with our overall business plan, can significantly increase
production and recoverable reserves.

We continue to search for and assess potential property acquisitions
that are appropriate for enhanced oil recovery programs, taking
advantage of high impact and large original oil-in-place reservoirs and
existing infrastructure.

About Terrex Energy Inc.

Terrex Energy Inc. is a Calgary-based junior oil company that
specializes in the application of proven Enhanced Oil Recovery (EOR)
methods to improve oil production from mature pools. We target
underexploited and undercapitalized light-to-medium oil reservoirs in
Western Canada. Our shares are listed on the TSX Venture Exchange under
the symbol 'TER'.

Neither the TSV Venture Exchange nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains certain forward-looking statements and
forward-looking information (collectively referred to herein as
'forward-looking statements') within the meaning of Canadian securities
laws. All statements other than statements of historical fact are
forward-looking statements. In particular, this press release contains
forward-looking statements pertaining to expectations of management
regarding the proposed acquisition, including; the closing date of the
acquisition; financing activities to be conducted by Terrex to finance
the acquisition, including the assumption of debt and the use of
proceeds thereof; the characteristics of the property, including the
expectation that the property will be a good candidate for Improved and
Enhanced Oil Recovery programs; the expected timing of the planning,
evaluation and development of the programs, and the success of such
programs. In addition, statements relating to 'reserves' are deemed to
be forward-looking statements as they involve the implied assessment,
based on certain estimates and assumptions, that the reserves described
exist in the quantities predicted or estimated and can be profitably
produced in the future. 

Undue reliance should not be placed on forward-looking statements, which
are inherently uncertain, are based on estimates and assumptions, and
are subject to known and unknown risks and uncertainties (both general
and specific) that contribute to the possibility that the future events
or circumstances contemplated by the forward-looking statements will
not occur. Assumptions include, among other things: future capital expenditure
levels; the ability to secure regulatory approval, the ability to
obtain financing on acceptable terms to finance the acquisition; future
oil and natural gas prices; future oil and natural gas production
levels; the success of IOR and EOR programs; the ability to obtain
equipment in a timely manner to carry out development activities; the
ability to market oil and natural gas successfully; and the impact of
increasing competition. 

Although Terrex believes that the expectations reflected in the forward
looking statements contained in this press release, and the assumptions
on which such forward-looking statements are made, are reasonable,
there can be no assurance that such expectations will prove to be
correct. Readers are cautioned not to place undue reliance on
forward-looking statements included in this document, as there can be
no assurance that the plans, intentions or expectations upon which the
forward-looking statements are based will occur. By their nature,
forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties that contribute to the possibility that
the predictions, forecasts, projections and other forward-looking
statements will not occur, which may cause Terrex's actual performance
and results in future periods to differ materially from any estimates
or projections of future performance or results expressed or implied by
such forward-looking statements. These risks and uncertainties include,
among other things, the following: that the acquisition may not close
when planned or at all or on the terms and conditions set forth herein;
the failure of Terrex to obtain the necessary regulatory approval
required in order to proceed with the acquisition; volatility in market
prices for oil and natural gas; failure to complete planned financing
activities; incorrect assessment of the value of the acquisition;
failure to realize the anticipated benefits of the acquisition; general
economic conditions in Canada; and the other factors.  Readers are
cautioned that this list of risk factors should not be construed as
exhaustive.

The forward-looking statements contained in this news release are made
as of the date hereof and Terrex does not undertake any obligation to
update publicly or to revise any of the included forward-looking
statements, except as required by applicable law. The forward-looking
statements contained herein are expressly qualified by this cautionary
statement.

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please contact Kim Davies, President & CEO, or Norm Knecht, VP Finance & CFO, at (403) 264-4430, or visit Terrex's website at www.terrexenergy.ca