Terra Resources, PLC Announces Financing
20 Jul, 2011, 17:00 BST
FRANKFURT, Germany, July 20, 2011 /PRNewswire/ --
Terra Resources, PLC, a London, UK based independent oil and gas company listed on the Frankfurt Stock Exchange under the trading symbol "T31" ("Terra Resources" or the "Company") announced that it has completed a financing round with private investors to move towards its goals of initiating production of its Russian oil and gas fields.
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Terra Resources has finalized an initial round of $7 Million in equity funding, with an additional funding of up to $4 Million available to the Company in the event it requires more capital to complete the initial phases of its work program developed by Baker Hughes.
"Having selected one of the best operators in the region and securing initial capital from investors who know us well and have worked with us, we are excited to move towards uncapping the existing wells and delivering maximum value to our shareholders," explains Charles Salisbury, Terra Resources' Secretary and Director.
About Terra Resources, PLC Terra Resources acquired substantial oil and gas concessions in the North Caspian Region - Kalmykia, Russia. The fields contain 64 wells, of which 62 were producing. The wells were capped and remained non-productive because of previous low gas prices and technology that could not handle the volume produced by high pressure wells. With new skilled management and an experienced operator, Terra Resources plans to open the wells again, and secure transportation via newly built gas and oil pipeline. Of the 62 producing wells, 7 are listed as potential "Super Giant" find based upon Subsalt discovery, outlined in the new 51-101 Competent Person's Report prepared by Chapman Petroleum Engineering, Ltd. This report concludes with a "best case" reserve estimate of the concession value at $7 to $11 Billion, with an estimated $175 million development costs over the life of the reserves.
Forward Looking Statements This press release contains forward-looking statements, which express the current beliefs and expectations of the management of Terra Resources, PLC. Such statements are based on current expectations and are subject to risks and uncertainties, many of which are beyond our control, and could cause future results, performance, and achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Actual results could differ materially depending on a number of factors, and we caution investors not to place undue reliance on the forward-looking statements contained in this press release. These risks and uncertainties include, but are not limited to, economic conditions, the regulatory environment, loan concentrations, vendors, employees, technology, competition, and interest rates. Forward-looking statements speak only as of the date on which they are made and TERRA RESOURCES, PLC undertakes no obligation to update these forward-looking statements, even if new information becomes available in the future.