Terra Energy Announces Renewal of Credit Facility

Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company") is
pleased to announce that it has renewed its credit facility in the amount of
$70,000,000 with a syndicate of lenders led by the Toronto Dominion Bank and
including the Canadian Imperial Bank of Commerce. The terms and conditions of
the facility are similar to the Company's previous credit facility and include a
1-year term-out provision allowing the credit facility to be classified as
long-term debt.


Currently, Terra Energy has not drawn against the facility as the Company is in
a positive cash position.


Terra Energy is a junior oil and gas company engaged in the exploration for, and
development and production of, natural gas and oil in Western Canada. Terra
Energy's common shares trade on the TSX Venture Exchange under the symbol 'TTR'.