Terrex Energy Inc. - Announces Closing of Two Creek Acquisition.

CALGARY, March 31 /CNW/ -- 
CALGARY, March 31 /CNW/ - Terrex Energy Inc. ("Terrex" or the "Company") (TSXV: TER) announces the closing of the
 previously announced $13 million acquisition of  producing oil and
 natural gas properties in the Two Creek area of central Alberta. The
 acquisition is effective January 1, 2011.


The properties consist of a 100% working interest in 4,320 acres of
 land, including related production infrastructure, in west central
 Alberta. Management's initial evaluation of the properties indicates
 that they are good candidates for optimization and Enhanced Oil
 Recovery ("EOR") programs. These programs have the potential to
 significantly increase production and recoverable reserves from the
 properties. Pool optimization, including the likelihood of drilling at
 least one well, will commence in the second half of 2011, together with
 planning of an EOR program for the Two Creek property. Two Creek
 average production for the month of December 2010 was approximately 260
 Boe/d, comprised of 210 Bbls of crude oil and natural gas liquids, and
 300 Mcf/d of natural gas.


On a pro forma basis, including the Two Creek properties, Terrex's
 average production for December 2010 was approximately 362 Boe/d,
 comprised of 270 Bbls of crude oil and natural gas liquids, oil 550
 Mcf/d of natural gas.


GLJ Petroleum Consultants Ltd. ("GLJ") has completed an independent
 reserves assessment and evaluation the Two Creek properties, in
 accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities, ("NI 51-101") having an effective date as at December 31, 2010.  GLJ is
 in the process of completing the reserve assessment and evaluation of
 the Company's oil and gas properties having an effective date as at
 December 31, 2010, being the Strathmore property. The following tables
 provide a summary of the GLJ Two Creek reserve assessment and, on a pro
 forma basis, the preliminary Terrex Strathmore reserve assessment
 giving effect to the Two Creek acquisition as at December 31, 2010.





                         TWO CREEK RESERVES, DECEMBER 31, 2010

                                              Natural Gas
                                        Oil               NGLs   Total
Reserves                               (Mbbl)   (MMcf)    (Mbbl) (MBoe)

Proved
Producing ............................   397        371      5     464

Proved Plus Probable Producing......     506        462      7     589









                   TERREX PRO FORMA RESERVES, DECEMBER 31, 2010
                  (preliminary Terrex, Strathmore plus Two Creek)

                                       Oil   Natural gas  NGLs   Total
Reserves                              (Mbbl)    (Mmcf)    (Mbbl) (Mboe)

Proved
Producing ...........................   475        637       5     587

Proved &
Probable..........................      874        835       7   1,019

Proved, Probable & Possible(
(1)) ......                           2,032       1,955      7   2,363






Note:    

(1)      Possible reserves are those additional reserves that are less
        certain to be recovered than probable reserves.  There is a 10%
        probability that the quantities actually recovered will equal
        or exceed the sum of proved plus probable plus possible
        reserves. Possible reserves, as stated above, relate to the
        Strathmore EOR program, scheduled to commence later 2011.





Final reserve information for Terrex and the Two Creek properties,
 effective as at December 31, 2010, will be disclosed in the Statement
 of Reserves of Terrex in accordance with NI 51-101, which will be filed
 on SEDAR concurrent with the release and filing of the Company's annual
 financial statements for the year  ended December 31, 2010.


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


Neither the TSV 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.


Reserve Information and Barrels of Oil Equivalent


Information relating to reserves of petroleum and natural gas contained
 herein represent estimates, which were prepared by the vendor's
 independent reserve evaluators in accordance with National Instrument
 51-101. Estimating quantities of proved petroleum and natural gas
 reserves is a subjective, complex process that is dependent on a number
 of assumptions and variable factors. Estimates of proved plus probable
 reserves are made assuming the development of the property, without
 consideration as to the availability of funding necessary for that
 development.


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.


Forward-Looking Statements


This news release contains certain forward-looking statements and
 forward-looking information (collectively referred to herein as
 "forward-looking statements") within the meaning of Canadian securities
 laws. All statements other than statements of historical fact are
 forward-looking statements. In particular, this press release contains
 forward-looking statements pertaining to expectations of management
 regarding the  acquisition, including; the characteristics of the two
 Creek properties, including the expectation that the properties will be
 good candidates for Improved and Enhanced Oil Recovery programs; the
 expected timing of the planning, evaluation and development of the
 programs, and the success of such programs. In addition, statements
 relating to "reserves" are deemed to be forward-looking statements as
 they involve the implied assessment, based on certain estimates and
 assumptions, that the reserves described exist in the quantities
 predicted or estimated and can be profitably produced in the future.  


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. Assumptions include, among other things: future capital
 expenditure levels; the ability to secure regulatory approval; future
 oil and natural gas prices; future oil and natural gas production
 levels; the success of optimization and EOR programs; the ability to
 obtain equipment in a timely manner to carry out development
 activities; the ability to market oil and natural gas successfully; and
 the impact of increasing competition.


Although Terrex believes that the expectations reflected in the forward
 looking statements contained in this press release, and the assumptions
 on which such forward-looking statements are made, are reasonable,
 there can be no assurance that such expectations will prove to be
 correct. Readers are cautioned not to place undue reliance on
 forward-looking statements included in this document, as there can be
 no assurance that the plans, intentions or expectations upon which the
 forward-looking statements are based will occur. By their nature,
 forward-looking statements involve numerous assumptions, known and
 unknown risks and uncertainties that contribute to the possibility that
 the predictions, forecasts, projections and other forward-looking
 statements will not occur, which may cause Terrex's actual performance
 and results in future periods to differ materially from any estimates
 or projections of future performance or results expressed or implied by
 such forward-looking statements. These risks and uncertainties include,
 among other things, the following; incorrect assessment of the value of
 the acquisition; failure to realize the anticipated benefits of the
 acquisition; risks associated with oil and gas development and
 production including: substantial capital requirements and financing,
 third party risk, government regulation, environmental, Prices, markets
 and marketing, dependence on key personnel, availability of equipment,
 access, risks may not be insurable, variations in exchange rates,
 expiration of licenses and leases, seasonality, competition, conflicts
 of interest, title to properties;  general economic conditions in
 Canada; and other factors.  Readers are cautioned that this list of
 risk factors should not be construed as 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 Kim Davies, President & CEO, or Norm Knecht, VP Finance & CFO, at (403)  264-4430, or visit Terrex's website at a href="http://terrexenergy.ca" font-weight="bold"terrexenergy.ca/a. /p 

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