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ENERGY: Terra Energy completes Tower-Septimus pipeline system

            (AlbertaIndex, May 10, Thursday) --- Calgary-based Terra Energy Corp said it has completed building the Tower-Septimus pipeline segment of its South Peace River gathering system. Production from Terra Energy’s gas field began flowing across this newly completed segment on April 30, boosting production to approximately 3,200 barrels of oil equivalent per day.

            The 19km pipeline segment connects the western end to the company’s existing Septimus pipeline, creating one continuous 6” high pressure gas gathering line of about 36 km in length.
           
Upon completion of the Peace River crossing sometime in the fourth quarter, the flow of natural gas will be reversed on this pipeline segment, and connected to a north lateral line that will deliver the natural gas across the Peace River to the McMahon plant for processing.
            Initially, additions to production volumes from the Tower field will continue to be limited as a result of capacity constraints between Terra Energy’s Wilder gas plant and the McMahon processing plant. When the north lateral and the Peace River crossing lines are completed later this year, the company’s natural gas production from the Tower gas field will no longer be capacity constrained.
            Cas Morel, President and CEO of Terra Energy, said: “The completion of the Tower - Septimus pipeline project is one more step forward towards the completion of Terra Energy’s South Peace Gathering System. Terra Energy has invested significant time and capital in building a gas gathering network south of the Peace River to service the company’s extensive land base.
            “Not only are significant volumes of natural gas being added to the company’s production base through 2007, but the ground work is being laid for the company’s exploitation and development projects in the years to come.”
Terra’s next production addition of around 500 BOED is expected in July when the company completes its previously announced East Boudreau pipeline.
            A BOE conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency for the individual products at the wellhead.
            Terra Energy is a junior oil and gas company engaged in the exploration, development and production of natural gas and oil in Western Canada. Its common shares trade on the TSX Venture Exchange under the symbol TTR.

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