Terra Energy is a Canadian junior energy company formed in January 2004. The company has grown very rapidly thru acquisition and drill bit.
Here are some growth statistics from 3/31/05 report
3/31/05 3/31/04 % INC
Average Production 2,155boepd 946boepd 128
Exit Production 2,591 1,180 120
Undeveloped Land 84,458 11,296 648
Company is guiding for 4000boepd to exit 2005.
In the most recent qtr, Terra lost 1 million dollars. However after adjusting for .5 million tax credit and 3 million in noncash financing fee, they made operating profits of 1.5 million or C$.03. Q2 should be solidly profitable without the one time fee and should be in the C$.04-.05 range. Results should improve dramatically later in the year as the production increases into the 3,000bpd range. The increased production should be accentuated by the normal increases in ngas pricing during winter 2005-6. Terra is currently weighted 75% ngas. Their oil production is 30% heavy oil that has suffered with recent wide spreads reaching $10 from light sweet pricing. Terra also has 55,000barrels of oil to deliver at C$35-36 before yearend. Overall this is an undervalued energy stock with rapidly increasing production. In addition to the increased production and related revenues, the company has authorized a 5% stock buyback program to help reduce the undervaluation. Bobwins
Both of these reports support the undervaluation of Terra.
$30 million dollar budget with minimum of 28 wells.
Authorized to buyback 5% or 1,250,000 shares
Mr. Bud Love
Vice-President of Finance and Chief Financial Officer