Terrace Energy Announces First Half Results
03.10.2013 | Marketwired
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 3, 2013) - Terrace Energy Corp. (TSX VENTURE:TZR)(OTCQX:TCRRF)(FRANKFURT:2TR) (the "Company") is pleased to announce its financial and operating results for the six and three months ended July 31, 2013.
The Company's interim financial statements and management discussion and analysis for the six and three months ended July 31, 2013 is available for viewing at www.sedar.com and on the Company's website at www.terraceenergy.net.
All dollar amounts are expressed in United States dollars unless otherwise stated.
First Half Achievements
- Finalized transactions to organize the Black Brush Terrace LP and acquire an interest in a 147,000 acre project in South Texas from an affiliate of Shell Oil.
- Completed non-brokered private placements of convertible notes in the aggregate amount of CDN$40,000,000.
- Drilled the first well on the Black Brush Terrace LP property to a total measured depth of approximately 12,000 feet including an approximate 4,000 foot horizontal lateral section in the Pearsall Shale. The well is in the completion stage of development.
- Successfully re-entered and placed into production a previously drilled Eagle Ford Shale well on the Black Brush Terrace LP property.
- Drilled four additional wells on the STS Olmos project. Two of the wells were subsequently placed into production and the remaining two are in the completion stage of development.
First Half Highlights
- Total revenues from oil and gas sales for the six and three months ended July 31, 2013 were $1,621,660 and $765,958 respectively compared to $759,958 and $202,868 for the six and three months ended July 31, 2012 respectively.
- The Company's aggregate share of production from the STS Olmos wells and the Cutlass well for the six months ended July 31, 2013 was approximately 17,877 barrels of oil and liquids at an aggregate average price of $83.60 per barrel of oil equivalent and 28,308 thousand cubic feet of natural gas at an average price of $4.05 per million cubic feet.
Financial Summary
Results of operations (unaudited) for the six and three months ended July 31:
| Six Months 2013 | Six Months 2012 | Three Months 2013 | Three Months 2012 | ||
| Oil & Gas revenues | $ 1,621,660 | $ 759,958 | $ 765,649 | $ 202,868 | |
| Direct operating expenses | 248,839 | 120,824 | 60,510 | 55,382 | |
| Depreciation, depletion and accretion | 493,531 | 18,468 | 220,773 | 12,949 | |
| 742,370 | 139,292 | 281,283 | 68,331 | ||
| Operating income | 879,290 | 620,666 | 484,366 | 134,537 | |
| Equity income in Black Brush Terrace LP | 35,909 | - | 35,909 | - | |
| 915,199 | 620,666 | 520,275 | 134,537 | ||
| General and administrative expenses | 1,301,344 | 595,336 | 778,838 | 366,648 | |
| Interest expense | 1,033,125 | - | 833,938 | - | |
| Foreign exchange gain | (761,051) | (92,687) | (794,843) | (61,644) | |
| Share-based payments | 304,194 | 146,020 | 231,077 | 70,289 | |
| Impairment of exploration and evaluation assets | 73,983 | - | - | - | |
| Recovery of exploration and evaluation assets | - | - | (30,167) | - | |
| 1,951,595 | 648,669 | 1,018,843 | 375,293 | ||
| Net loss for the period | $ (1,036,396) | $ (28,003) | $ (498,568) | $ (240,756) | |
| Loss per share | $ (0.02) | $ (0.00) | $ (0.01) | $ (0.00) | |
Summary Balance Sheet | July 31, 2013 | January 31, 2013 |
| Current assets | $ 17,715,920 | $ 3,050,989 |
| Operators bond | 25,000 | 25,000 |
| Investment in Black Brush Terrace LP | 12,900,434 | - |
| Advances for future exploration | 1,890,819 | 459,008 |
| Exploration and evaluation assets | 10,878,981 | 6,737,039 |
| Property and equipment | 9,615,819 | 6,047,528 |
| Total assets | 53,026,973 | 16,319,564 |
| Total liabilities | 35,700,161 | 579,601 |
| Total equity | $ 17,326,812 | $ 15,739,963 |
About Terrace Energy
Terrace Energy is an oil & gas development stage company that is focused on unconventional oil extraction in onshore areas of the United States, particularly in South Texas.
ON BEHALF OF THE BOARD OF DIRECTORS
Eric Boehnke, Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.