Chittim Heirs 2-H was drilled to a total depth of 9,389 ft, including a 4,100 foot horizontal lateral section, in the Lower Eagle Ford Shale.

The well was completed in 15 stages using hydrocarbon-based hydraulic fracturing fluids. During the first 15 days of flow-back testing, using 5 ½" casing, the well produced more than 11,500 barrels of oil, which is approximately 765 barrels of oil per day, and minor amounts of associated gas.

This successful use of hydrocarbon-based fracturing fluids represents a significant advancement in the development of the Eagle Ford Shale in the black oil window, which is defined by low gas-oil ratios found in the northern extension of the formation.

Terrace Energy CEO Dave Gibbs said, "We are very pleased with the results of the Chittim Heirs 2-H well to-date. Such results, together with the successful re-entry of the Chittim F-1H well, demonstrate we can successfully develop oil production from the Eagle Ford formation on the Maverick County Project. This creates a significant new opportunity for the Company."