A 7,500 meter, 6 tie-in was completed in late March 2009 to Terra Energy’s Wilder facility. The well is currently producing on a restricted basis. The Monias 14-9 well was drilled with targeted zones in the Permian and the Mississippian formations also, and completed in March of 2009. A 300 meter tie-in to a third party facility was completed and placed on production in April of 2009. A third well is currently being drilled and completed at Monias.
Sunrise
Three wells were drilled and cased at Sunrise area with main targets being Doig and Doig phosphate. Completion operations will be carried out after spring break-up and the wells will be tied-in through the company’s Sunrise gathering system to its tower dehydration and compression plant.
Guidance For First Quarter Of 2009
The company’s average production for first quarter 2009 exceeded 5800 BOE/day. Production from these new wells will allow Terra Energy to counterbalance naturally occurring production declines and maintain existing production levels while make best use of facility utilization.
Terra Energy preliminary capital expenditure plan and budget for 2009 was designed to hold the out put rates at about 6,000 BOE/day, while the company explores other opportunities for development. The first of these opportunities was the newly announced agreement to obtain Tecton Energy Canada ULC. The Tecton acquisition, declared on April 20, 2009 and planned to close in late May 2009, will considerably strengthen Terra Energy’s undeveloped land position in its Fort St. John core area.
The company will carry on to monitor cash flow in light of changing commodity pricing with a analysis towards changing its capital expenditure plan as required to maintain a stability between production and cash flow, and an allocation of capital to cost-effective M&A growth.
