Terra Energy (TTRHF)

[CrocHntr]

Interesting ~ Terra Energy halted at the open

2005-09-30 09:06 ET - Halt Trading

Terra Energy Corp. was halted effective at the open on Sept. 30, 2005

[Tackler]

Terra Energy's financing is oversubscribed

2005-07-08 15:24 ET - News Release

Mr. Bud Love reports

TERRA ENERGY'S OFFERING OVERSUBSCRIBED

Terra Energy Corp. has increased the amount of its bought-deal equity financing with Canaccord Capital Corp. and Research Capital Corp.

As a result of exceptional demand, Terra Energy has agreed to increase the subscription offering to a total of $23,299,500. The offering, which is subject to regulatory approval, is expected to close on July 19, 2005.

The revised offering now consists of the sale of 3.9 million common shares issued on a flow-through basis at a price of $2 per share totalling $7.8-million and 9,117,353 units, at a price per unit of $1.70, totalling $15,499,500. Each unit will comprise one common share of the company and one-half of one common share purchase warrant. Each whole warrant will entitle the warrantholder to acquire one common share at an exercise price of $2.10 at any time prior to one year after closing of the offering.

Terra Energy intends to use the proceeds from this offering to drill its high-impact opportunities in the company's Fort St. John core area, as well as to finance its continuing 2005 Capex program and 2006 exploration program.

[designer]

Bob......another item re Sterling


STERLING RESOURCES LTD. FARMS OUT INTEREST IN OFFSHORE UK CENTRAL NORTH SEA BLOCK

Sterling Resources Ltd. has signed a letter of agreement with Oilexco North Sea Ltd. under which Oilexco proposes to acquire a 65% interest in and become the operator of block 21/23a in the United Kingdom Central North Sea by paying 95% of the costs of a well to test an Eocene channel sand prospect on the block. Sterling currently holds 100% interest in block 21/23a. It will pay 5% of the well cost and retain a 35% interest.

Oilexco will endeavour to drill the well by the end of the year using the Sedco 712 rig, which it currently has under long-term contract.

Block 21/23a is one of the blocks awarded to Sterling in the UK 22nd licensing round. Since the award, Sterling has acquired 3D seismic over the block and has completed technical evaluations in conjunction with its outside consultants. The well to be drilled is within a clearly defined channel system.

The arrangement is subject to mutually acceptable formal agreement and the approval of the UK Department of Trade and Industry.

[designer]

Bob....I hope it is OK to post some items about Sterling Resources on this board. I'm too cheap to be a paying member of IHUB:)

Here is the first one....

STERLING RESOURCES LTD. FARMS OUT INTEREST IN OFFSHORE UK SOUTHERN GAS BASIN BLOCK

Sterling Resources Ltd. has signed a letter agreement with Grove Energy (UK) Ltd. under which Grove will acquire a 25-per-cent interest in block 42/13 located in the U.K. Southern North Sea gas basin. Sterling currently holds a 100-per-cent working interest in the block, which will reduce to 75 per cent as a result of the farm-out. Sterling will remain operator.

Grove will earn its interest by paying 50 per cent of the dry hole costs of a well to the Carboniferous. Costs in excess of the turnkey cost of drilling the well and any testing costs will be paid by the parties according to their working interests.

Block 42/13 was one of the blocks awarded to Sterling in the U.K. 22nd licensing round. Since award, Sterling has acquired the 3-D seismic over the block and a full evaluation has been completed by Sterling's consultants, PGL. The study confirms the potential for a large structure within which a 400-foot gas column has been proven by the 42/13-2 well. The study further shows that the 42/13-2 discovery well, drilled by Mobil in 1997, had significant wellbore damage and that an undamaged well should have produced commercial rates of natural gas.

Sterling plans to farm out additional working interest but in the interim will progress final well location and turnkey well proposals. The area is suited to jack up drilling and plans are progressing for a well in 2006.

The agreement is subject to the approval of the U.K. Department of Trade and Industry and a formal agreem

[Bobwins]

Thanks, I guess growing this fast does have its downsides. They haven't had 2000+bpd cashflow long enough to self finance their capex. 2006 should be easier but may still require financing due to the delays required in Canada to get approved to run at production levels. This will delay the cashflow. Bobwins

[designer]

Bobwins.......I have a friend in Canada who researches and invests in many of the Canadian Juniors. He sent this info re Terra this morning.

Thought you may be interested..........

TERRA ENERGY ANNOUNCES 'BOUGHT DEAL' EQUITY OFFERING

Terra Energy Corp. has entered into a bought-deal financing agreement with Canaccord Capital Corporation and Research Capital Corporation, as co-lead underwriters, to offer for sale units and flow-through shares totalling $15,299,800.

The offering will consist of 3.15 million common shares issued on a flow-through basis at a price of $2.00 per share. These flow-through shares will entitle purchasers to receive $2.00 per share of qualifying expenditures, which will be renounced to investors in respect of the 2005 taxation year.

The balance of the offering will comprise 5,294,000 units at a price per unit of $1.70. Each unit will comprise one common share of the company and one-half of one common share purchase warrant. Each whole warrant will entitle the warrantholder to acquire one common share at an exercise price of $2.10 at any time prior to one year after closing of the offering.

Closing of the offering is expected to occur on or about July 19, 2005.

The company has granted the syndicate the option to sell an additional $3-million of securities, of which up to 50 per cent of the proceeds may be from the sale of flow-through shares.

The flow-through shares and units will be sold on a bought-deal basis via private placement pursuant to applicable securities law exemptions in Ontario, Alberta and British Columbia.

The syndicate will receive a commission of 6 per cent of the gross proceeds.

Terra Energy intends to use the proceeds from this offering to drill its high-impact opportunities in the company's Fort St. John core area, as well as to finance its continuing 2005 Capex program and 2006 exploration program.

[Bobwins]

Not sure they can publicize Canadian broker analyst reports down here. May be SEC problems. They are not even on TSE so probably are under the radar of Canadian investors who won't buy Venture stocks. I'm just glad that two brokers chose to write up the company. Bobwins

[coffee221]

Terra does need to do a better job of telling their story. Website is not even finished, press releases are not hitting US news wires, etc... Obviously they are a very new, but investors are not going to buy if they don't hear about the company.

[Bobwins]

Thanks coffee221. Put them in the ibox. Very good reads on why Terra is a good value. Bobwins

[coffee221]

There is a new analyst report from Wolverton on the Terra website. Very detailed, lots of good info. They are very positive on Terra.

[Bobwins]

CrocHntr... I agree about the Canadian juniors. They don't seem to get credit for the production. Terra is barely 18 months old and talking about 4000bpd by 12/05!! Look at geoi, bsic, fppc production. It's a joke compared to Canadian juniors!!!

I also own cze, krs, cux, pfc and hpx. Hpx is my only big profit because it bought Vaquero, which I loved. PFC is my latest flyer. Venezuelan President is crazy but I think he will deal with PFC. They have locals on board and have been in country for 20 years. They have hit a big 500ft pay ngas well. Venezuela spending millions to build pipeline directly to site to supply their world's biggest refinery. Refinery doesn't have enough ngas to run properly. They won't get market but 500feet of pay will give them good return even at $2.

Cux is at 20,000boepd in Egypt and guiding for 40,000by yearend!! Expensive but big hitter!

CZE having a good day because reserves revised way up with 12 yr life.

Good luck Bobwins

[CrocHntr]

Looks like it's moving closer to 1.70 already today. Nice find! I bought 2,000 shares early in the week at 1.43, but I could kick myself for not adding more at the time. Thanks again for pointing this one out Bobwins.

I'm really starting to overweigh myself in Canadian Juniors. I hope the bottom doesn't fall out of the O&G sector, but these Canadian companies seem so undervalued in comparison with their US counterparts. So far I haven't made too much of a profit, but it's amazing how much better shape some of these Canadian Juniors are in when it comes to BOEPD, cash flow, eps, etc. The numbers don't lie (usually), so I expect these to be discovered at some point.

Right now, I own: Diaz (DZR), Terra (TTR), Rival (RGY), Rock Creek (RCR), Aquest (AEX), Grand Petroleum (GPP), and Corridor (CDH) and am gambling a bit with TG World (TGE). Granted, I haven't loaded up heavily on any of these (except maybe Diaz), but they all seem like good, undervalued plays to me. Only time will tell...!

[Bobwins]

Terra moved up a bit yesterday at +.11 to 1.60 canadian/US$1.295. Recent publication of Iradesso report highlighted the favorable valuation of Terra vs other Canadian juniors. Enterprise value to market cap ratio was 5.9, Value per flowing boepd was C$41,444, reserve life was 8 years.

Although these are not the lowest values in the group, they are outstanding when combined with Terra's guidance of doubling production to exit 2005 at 4000boepd from the 2000boepd level at 1/05. I think Terra could easily double from current levels by yearend. Bobwins