FRANKFURT, Germany, July 20, 2011 /PRNewswire-AsiaNet/ –
Terra Resources, PLC, a London, UK based independent oil and gas companylisted on the Frankfurt Stock Exchange under the trading symbol “T31″(“Terra Resources” or the “Company”) announced that it has completed afinancing round with private investors to move towards its goals ofinitiating production of its Russian oil and gas fields.
Terra Resources has finalized an initial round of $7 Million in equityfunding, with an additional funding of up to $4 Million available to theCompany in the event it requires more capital to complete the initial phasesof its work program developed by Baker Hughes.
“Having selected one of the best operators in the region and securinginitial capital from investors who know us well and have worked with us, weare excited to move towards uncapping the existing wells and deliveringmaximum value to our shareholders,” explains Charles Salisbury, TerraResources’ Secretary and Director.
About Terra Resources, PLC Terra Resources acquired substantial oil andgas concessions in the North Caspian Region – Kalmykia, Russia. The fieldscontain 64 wells, of which 62 were producing. The wells were capped andremained non-productive because of previous low gas prices and technologythat could not handle the volume produced by high pressure wells. With newskilled management and an experienced operator, Terra Resources plans toopen the wells again, and secure transportation via newly built gas and oilpipeline. Of the 62 producing wells, 7 are listed as potential “Super Giant”find based upon Subsalt discovery, outlined in the new 51-101 CompetentPerson’s Report prepared by Chapman Petroleum Engineering, Ltd. This reportconcludes with a “best case” reserve estimate of the concession value at $7to $11 Billion, with an estimated $175 million development costs over thelife of the reserves.
Forward Looking Statements This press release contains forward-lookingstatements, which express the current beliefs and expectations of themanagement of Terra Resources, PLC. Such statements are based on currentexpectations and are subject to risks and uncertainties, many of which arebeyond our control, and could cause future results, performance, andachievements to differ significantly from the results, performance orachievements expressed or implied by such forward-looking statements. Actualresults could differ materially depending on a number of factors, and wecaution investors not to place undue reliance on the forward-lookingstatements contained in this press release. These risks and uncertaintiesinclude, but are not limited to, economic conditions, the regulatoryenvironment, loan concentrations, vendors, employees, technology,competition, and interest rates. Forward-looking statements speak only as ofthe date on which they are made and TERRA RESOURCES, PLC undertakes noobligation to update these forward-looking statements, even if newinformation becomes available in the future.
SOURCE: Terra Resources, PLC
CONTACT: Terra Resources, PLC, +44-1372-897147, Investor Relations,