TERREX REPORTS FIRST QUARTER 2011 RESULTS

CALGARY, June 7, 2011 /CNW/ -- 
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS
 WIRE SERVICES/


CALGARY, June 7, 2011 /CNW/ - Terrex Energy Inc. ("Terrex" or the
 "Company") (TSXV - TER) announces its financial and operating results
 for the quarter ended March 31, 2011.


The Company has filed its unaudited interim financial statements and
 related management's discussion and analysis (MD&A) for the three month
 period ended March 31, 2011 on SEDAR at www.sedar.com and the Company's website at www.terrexenergy.ca. Certain selected financial and operational information for the period
 is set out below and should be read in conjunction with the Company's
 interim financial statements and for the period ended March 31, 2011
 and the related MD&A.


"The first quarter of 2011 was a very active and productive period for
 Terrex", stated Ms. Kim Davies, President and CEO.


    --  "We received approval from the Energy Resources Conservation
        Board for our first Enhanced Oil Recovery (EOR) project at
        Strathmore and have finalized specifications  and ordered the
        necessary equipment;
    --  We acquired our second property at Two Creek and are moving
        ahead with planning optimization and EOR programs. We
        anticipate optimization could include drilling of up to two
        in-fill development wells prior to year-end, and we are excited
        about the longer term EOR potential of the property. Two Creek
        and  Strathmore combined,  have the potential to add four to
        six million barrels of crude oil reserves, based upon
        analogous  projects;  and
    --  We completed a unique financing through the $14.7 million
        hydrocarbon purchase agreement with Sandstorm Metals and Energy
        Ltd. that permitted us to fund the Two Creek acquisition
        without dilution to our shareholders.



These activities and transactions have contributed to, and we are
 pleased with, our progress towards achieving our objective of building
 a unique oil company focused on Enhanced Oil Recovery", continued Ms.
 Davies.


Field Operations


First quarter field activities continued to focus on the design of the
 chemical alkaline-surfactant-polymer (ASP) flood for the Strathmore
 property. Additionally, activities at Strathmore concentrated on
 reactivating well bores and pipelines, injector well conversions, and
 facility modifications and repairs, in advance of commencing the
 planned ASP flood later in the year. At Two Creek, preliminary
 evaluation and planning of optimization and EOR programs commenced
 during the quarter.


Operational and Financial Summary 



Periods ended March 31                               2011        2010

Average production, boe/d                             353          69

Capital expenditures, including acquisitions $ 15,044,293 $   865,644

Revenue, net of royalties                    $  1,650,612 $   207,319

Funds flow from operations (1)               $  (420,413) $ (109,308)

     Per share, basic and diluted            $    (0.005) $   (0.004)

Operating (loss) (1)                         $  (724,695) $ (316,175)

     Per share, basic and diluted            $    (0.009) $   (0.029)

Net (loss)                                   $  (700,910) $ (332,263)

     Per share, basic and diluted            $    (0.009) $   (0.012)









(1)      Funds flow from operations and operating loss are non-IFRS
         measures and are addressed in the "Advisories" section.





Comparative figures for 2010 are for the two month period from February 1, 2010, date of commencement of
 operations, to March 31, 2010 and have been restated to reflect
 International Financial Reporting Standards (IFRS) adopted in 2011.


Average production for the first quarter of 2011 increased significantly
 over the first quarter of 2010 as a result of the Two Creek acquisition
 and increased production at Strathmore. Two Creek production averaged
 240 boe/d for the quarter and average production at Strathmore during
 the first quarter increased to 113 boe/d, as the result of reactivation
 activities, as compared to 69 boe/d for the two months ended March 31,
 2010.  Revenue during the first quarter of 2011 increased significantly
 over 2010 primarily as a result of the incremental production realized
 from the Two Creek acquisition which was effective as of January 1,
 2011.


Earnings and funds flow from operations continued to reflect lower
 production rates and higher operating costs typical of mature
 reservoirs. In addition, operating costs at Strathmore include certain
 repair costs necessary for the EOR project. As the Company's EOR and
 optimization programs progress, production and revenue from these
 properties is expected to increase significantly.


ABOUT TERREX


Terrex Energy Inc. is a Calgary based junior oil company that focuses on
 the application of proven Enhanced Oil Recovery (EOR) methods to
 improve oil production from existing mature fields. Terrex targets
 underexploited and undercapitalized light to medium oil reservoirs in
 Western Canada. The Company's shares are listed on the TSX Venture
 Exchange under the trading symbol "TER".


Neither the TSX Venture Exchange nor its Regulation Service Provider (as
 that term is defined in the policies of the TSX Venture Exchange)
 accepts responsibility for the adequacy or accuracy of this release.


ADVISORIES


Barrels of Oil Equivalent


Production volumes and reserve information are commonly expressed on a
 barrel of oil equivalent ("Boe") basis whereby natural gas volumes are
 converted at the ratio of six thousand cubic feet of natural gas to one
 barrel of oil based on an energy equivalency at the burner tip and does
 not represent a value equivalency at the well head. Used in isolation,
 barrels of oil equivalent may be misleading.


Non-IFRS Information


Included in this news release are references to terms commonly used in
 the oil and gas industry including funds flow from operations and
 operating loss. Such terms do not have standard meaning as prescribed
 under IFRS and therefore may not be comparable with the determination
 of similar measures for other entities. As used in this news release, 
 funds flow from operations is calculated as cash flow from operating
 activities less changes in non-cash working capital and, operating loss
 is calculated as net loss before stock based compensation and accretion
 of asset retirement obligations. Funds flow from operations is used by
 management in assessing the Company's ability to fund capital programs
 and operations and operating loss provides a comparison of operating
 results between periods, excluding non-cash items subject to
 significant volatility. The foregoing non-IFRS measures should not be
 considered an alternative to, or more meaningful than cash provided by
 operating activities and net loss determined in accordance with IFRS.


Forward-Looking Statements


Certain statements contained in this news release constitute
 forward-looking statements and forward-looking information
 (collectively referred to herein as "forward-looking statements")
 within the meaning of applicable Canadian securities laws.  Such
 forward-looking statements relate to future events or future
 performance and are based on Terrex's current internal expectations,
 estimates, projections, assumptions and beliefs, including, among other
 things, assumptions with respect to production, future capital
 expenditures and cash flow.  Readers are cautioned that the assumptions
 used in the preparation of such information may prove incorrect.  All
 statements other than statements of historical fact may be
 forward-looking statements.  Such forward-looking statements are often,
 but not always, identified by the use of words such as "seek",
 "anticipate", "budget", "plan", "continue", "estimate", "expect",
 "forecast", "may", "will", "project", "predict", "potential",
 "targeting", "intend", "could", "might", "should", "believe" and
 similar expressions.  These statements involve known and unknown risks,
 uncertainties and other factors that may cause actual results or events
 to differ materially from those anticipated in such forward-looking
 statements.  Terrex believes the expectations reflected in those
 forward-looking statements are reasonable but no assurance can be given
 that these expectations will prove to be correct and such
 forward-looking statements included in, or incorporated by reference
 into, this news release should not be unduly relied upon.  These
 forward-looking statements speak only as of the date of this news
 release.


In particular, this news release contains forward-looking statements
 pertaining to the following: 


    --  business strategies
    --  exploration and development plans
    --  the potential of Two Creek Property
    --  implementation, benefits and timing of enhanced oil recovery
        ("EOR") programs
    --  other expectations, beliefs, plans, goals, objectives,
        assumptions or statements about future events or performance



Forward-looking statements are based on Terrex's current beliefs as well
 as assumptions made by, and information currently available to, Terrex
 concerning business prospects, strategies, regulatory developments, the
 ability to obtain equipment in a timely manner to carry out development
 activities, the ability to obtain financing on acceptable terms, the
 benefits of IOR and EOR programs and the terms of the Hydrocarbon
 Purchase Agreement.  Although management considers these assumptions to
 be reasonable based on information currently available to it, they may
 prove to be incorrect.


Undue reliance should not be placed on forward-looking statements, which
 are inherently uncertain, are based on estimates and assumptions, and
 are subject to known and unknown risks and uncertainties (both general
 and specific) that contribute to the possibility that the future events
 or circumstances contemplated by the forward-looking statements will
 not occur.  There can be no assurance that the plans, intentions or
 expectations upon which forward-looking statements are based will in
 fact be realized.  Actual results will differ, and the difference may
 be material and adverse to Terrex and its shareholders.  These factors
 include, but are not limited to risks associated with oil and natural
 gas exploration, financial risks, the history of losses, substantial
 capital requirements, political and government risks, government
 regulation, environmental, prices, dependence on key personnel,
 availability of drilling equipment and access, risks may not be
 insurable, licenses, resource estimates, variations in exchange rates. 
 Further information regarding these factors may be found under the
 heading "Risk Factors" in the company's Annual Information Form. 
 Readers are cautioned the foregoing list of factors that may affect
 future results is not exhaustive.


The forward-looking statements contained in this news release are made
 as of the date hereof and Terrex does not undertake any obligation to
 update publicly or to revise any of the included forward-looking
 statements, except as required by applicable law.  The forward-looking
 statements contained herein are expressly qualified by this cautionary
 statement.


 


 


 


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p please contact Kim Davies, President & CEO, or Norm Knecht, VP Finance  and CFO, at [phone], or visit the Company's website at a href="http://www.terrexenergy.ca"www.terrexenergy.ca/a. /p 

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