VANCOUVER, March 5, 2015 /CNW/ - Terrace Energy
Corp. (the "Company") (TSXV: TZR, OTCQX: TCRRF, FRANKFURT: 2TR) reports continuing positive
results and progress on its STS Olmos Development Project in
McMullen and LaSalle Counties, Texas.
The Company and its partner recently completed the second set of
three horizontal wells with an average lateral length of
approximately 5,500 feet in the Olmos Sandstone Formation and were
each completed with 19 - 22 stages of hydraulic fracture
stimulation using a "zipper frac" technique. The wells were
connected to permanent production equipment prior to flow back
operations and production was initiated on February 24, 2015 with all production going
directly to sales. The wells showed oil within the first few
hours of testing and have produced over 16,000 barrels of oil to
date. Current production rates after six days of testing and only
~3% load recovered are now reported at a combined total of 2,821
BOEPD as follows *:
- STE #1-5H 765 BOPD, 1575 MCFD (1028 BOEPD*)
- STE #2-5H 631 BOPD, 1069 MCFD (809 BOEPD*)
- STE #3-5H 775 BOPD, 1255 MCFD (984 BOEPD*)
The Company will continue to monitor the flowback operations
over the next few weeks and make further determinations on optimum
choke sizes going forward as load recovery continues and gas-oil
ratios stabilize. The Company intends to follow up this report with
30 day IP rates when appropriate.
The Company previously reported initial flow back testing
reports on the first three-well pad, the STS #1-6H, #2-6H and #3-6H
pad at a combined initial rate of 2,102 BOEPD. Stabilized 30 Day
Average IP rates are now reported at a combined total of 2,326
BOEPD as follows:
- STS #1-6H 483 BOPD, 737 MCFD (606 BOEPD*)
- STS #2-6H 632 BOPD, 1666 MCFD (910 BOEPD*)
- STS #3-6H 615 BOPD, 1169 MCFD (810 BOEPD*)
These wells have now been on production for approximately 60
days have produced a total of approximately 110,000 BOE.
Dave Gibbs, the Company's
President and CEO, stated "The STS Project continues to produce
repeatable performance results that meet or exceed our model
expectations. We continue to be pleased with the results of our new
wells and the consistent performance across the field."
Progress continues as planned on the overall development of the
project. All three wells on the third multi-well pad, the STS
Section 605 pad in McMullen County
have been successfully drilled and cased in the Olmos Formation
with lateral lengths averaging 5,400 feet. These wells are
scheduled to be completed using the zipper frac technique with a
tentative frac date scheduled for late March, 2015. Drilling
operations are currently underway on the fourth pad, the second STS
section 6 pad, in McMullen County.
Surface pipe has been set on all three wells situated on this pad
to a depth of approximately 5,150 feet. The rig is currently
drilling ahead on the STS#6-6H.
The Company and its partner will continue to assess the impact
of the current economic condition of the energy industry, balancing
short-term service costs versus short-term commodity prices.
Further development activity will be announced as appropriate. The
Company, through its wholly owned subsidiary Terrace STS, LLC,
holds a 15% interest in these new wells on the STE pad and
approximately 27% working interest in the overall Project.
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.
ON BEHALF OF THE BOARD OF DIRECTORS
"Dave Gibbs"
Dave Gibbs, CEO
* BOEs may be misleading, particularly if used in
isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is
based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead.
**The results observed are not necessarily indicative of
long-term production performance or the ultimate recovery from
these wells
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.
Forward-Looking Information
This press release includes forward-looking information and
forward-looking statements (together, "forward-looking
information") within the meaning of applicable Canadian and
United States securities laws.
Forward-looking information includes, but is not limited to:
information regarding plans for the development of the Company's
projects and the timing thereof, including the potential number of
drilling locations on the STS Olmos Development Project and
expectations regarding achieving key successes and milestones over
the next several months. Users of forward-looking information are
cautioned that actual results may vary materially from the
forward-looking information disclosed in this press release. The
material risk factors that could cause actual results to differ
materially from the forward-looking information contained in this
press release include changes to the Company's ability to access
infrastructure in the vicinity of its projects at a reasonable
price; changing costs for and availability of required goods
and services; regulatory changes; risks relating to disagreements
or disputes with joint venture partners, including any failure of a
joint venture partner to fund its obligations; volatility in market
prices for oil and natural gas; and all of the other risks and
uncertainties normally associated with the exploration for and
development and production of oil and gas, including geologic
uncertainties, unforeseen drilling hazards, geological, technical,
drilling and processing problems, accidents and adverse weather
conditions. The forward-looking information contained in this press
release represents management's best judgment of future events
based on information currently available. The material assumptions
used to develop the forward-looking information include: that the
Company will be able to access infrastructure in the vicinity of
its projects on reasonable terms; that the Company will be able to
access the goods and services necessary in order to conduct further
exploration, development and production at its projects on
reasonable terms; that regulatory requirements will not change in
any material respect; and that other aspects of the Company's
operations will not be affected by unforeseen
events. Statements regarding future drilling locations are
based on geologic interpretations which are subject to revision as
further data is developed. The Company does not assume the
obligation to update any forward-looking information, except as
required by applicable law.
SOURCE Terrace Energy Corp.