Terra Energy Announces Results of First Quarter 2009

Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company") is
pleased to release its Financial Statements and related Management's Discussion
and Analysis for the three month period ended March 31, 2009. Copies of Terra
Energy's First quarter 2009 results may be obtained at www.sedar.com or
www.terraenergy.ca.


Q1-2009 Highlights:

- Average production per day increased 25.9% to 5,884 BOED during the three
month period ended March 31, 2009, compared to 4,675 BOED during the same period
in 2008. 


- Despite lower commodity prices, Operating Netbacks increased approximately 3%
year over year from $7.5 million to $7.7 million during the three month periods
ended March 31, 2009 equating to $0.10 per share. The Company generated Cash
Flow from Operations of $6.2 million for the quarter or $.09 per share.


- The Company reported a net loss for the three month period ended March 31,
2009 of $920 thousand compared to a loss of $1.12 million for the same period
for 2008.


- Operating expense per unit of production decreased 13.6% year over year from
$11.08 per BOE to $9.57 per BOE for the three month period ended March 31, 2009.


- During Q1-2009, the Company acquired approximately 115,646 net acres of crown
land in the Peace River Arch area of western Alberta and British Columbia at an
average price of $17.05 per acre.


- The Company accelerated some of its drilling plans for the year. In total, the
Company drilled 5 wells (3.7 net) during this period, all of which have been
cased, and completed or awaiting completion.


Guidance 

On April 20th, 2009, Terra Energy announced that it had agreed to purchase all
of the shares of Tecton Energy Canada ULC ("Tecton") in a cash and share
exchange transaction valued at $8 million Cdn. The Company has agreed to pay $4
million in cash and issue 2,580,465 common shares priced at $1.55 per share.
Tecton is a private company whose assets consist primarily of 140 gross sections
of P&NG mineral rights (71 net) located in the immediate vicinity of Fort St.
John. The majority of these lands are either adjacent to or proximal to lands
currently owned by Terra Energy. The mineral rights cover approximately 89,910
gross acres (46,011 net), with Montney rights throughout and many sections in
which all mineral rights are included from surface to basement. 


Terra Energy has received approval to list its common shares on the Toronto
Stock Exchange (the "TSX"). The Company's common shares will commence trading on
the TSX at market open on Monday, June 1, 2009 under the symbol "TT". The
Company's common shares will be delisted from the TSX Venture Exchange in
conjunction with the commencement of trading on the TSX.


Terra Energy continues to maintain a strong balance sheet. The Company will
continue to position itself for future growth and consider opportunities for
value creation in the current economic environment.


READER ADVISORY

A BOE conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of
natural gas to barrels of oil equivalence is based upon an energy equivalency
conversion method primarily applicable at the burner tip and does not represent
a value equivalency for the individual products at the wellhead. Such disclosure
of BOE's may be misleading, particularly if used in isolation.


This media release contains certain statements which constitute forward-looking
statements or information, including completion of the Tecton acquisition,
development potential and the positioning of the Corporation for future growth
and value creation. Although Terra Energy believes that the expectations
reflected in our forward-looking statements are reasonable, our forward-looking
statements have been based on factors and assumptions concerning future events
which may prove to be inaccurate. Those factors and assumptions are based upon
currently available information. Such statements are subject to known and
unknown risks, uncertainties and other factors that could influence actual
results or events and cause actual results or events to differ materially from
those stated, anticipated or implied in the forward looking information. As
such, readers are cautioned not to place undue reliance on the forward looking
information, as no assurance can be provided as to future results, levels of
activity or achievements. Risks include, but are not limited to: the risks
associated with the oil and gas industry (eg., operational risks in development,
exploration and production; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections relating to
production, costs and expenses, and health, safety and environmental risks),
commodity price, price and exchange rate fluctuation and uncertainties resulting
from potential delays or changes in plans with respect to exploration or
development projects or capital expenditures. Additional information on these
and other factors that could affect Terra Energy's operations or financial
results are included in Terra Energy's Annual Information Form and other
documents on file with Canadian securities regulatory authorities at
www.sedar.com. Furthermore, the forward-looking statements contained in this
document are made as of the date of this document and, except as required by
applicable law, Terra Energy does not undertake any obligation to publicly
update or to revise any of the included forward-looking statements, whether as a
result of new information, future events or otherwise. The forward-looking
statements contained in this document are expressly qualified by this cautionary
statement.


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'.