Business
Terra Energy announces Q3 results and increased production
TSX-V: TTR CALGARY, Nov. 15 /CNW/ - Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "...
About this update from Total Metals Corp
[{"type":"text","content":"\n\n\n\nTSX-V: TTR\n\n\nCALGARY, Nov. 15 /CNW/ - Terra Energy Corp. (TSX VENTURE:TTR) ("Terra\nEnergy" or the "Company") is pleased to release its consolidated financial\nstatements and Management's Discussion and Analysis for the three and nine\nmonth periods ended September 30, 2007. Copies of Terra Energy's financial\nstatements and Management's Discussion and Analysis may be obtained via SEDAR\nat www.sedar.com or at the Company's website at www.terraenergy.ca.\n\n\nOPERATING\n\n\nThe Company increased production to an average of 3,706 BOED for the\nthree month period ended September 30, 2007. The increased production was\nachieved though the completion of the East Boudreau Pipeline allowing the\nCompany to tie-in an additional 500 BOED in Q3, and from the benefit of having\nthe Tower-Septimus pipeline (announced May 2, 2007) on stream for the entire\nthird quarter. The combined effect of these two factors increased average\nproduction for the quarter by 700 BOED as compared the previous quarter.\n\n\nFINANCIAL\n\n\nPetroleum and natural gas revenues for Q3 as compared to Q2 rose only\n1.3% to $12,439,938, despite an increase in average production of 700 BOED,\ndue to falling commodity prices. Natural gas prices received by the Company\nfor Q3 averaged $5.15/mcf ($30.90/BOED) compared to $7.28/mcf ($43.68/BOED)\nreceived in Q2. This sharp reduction in commodity prices has resulted in cash\nflow from operations decreasing in Q3 to $3,671,403, from $4,659,989 in Q2,\nand resulting in a net loss for the quarter of $1,161,031. Production expenses\non a per unit of production basis rose marginally by 2.4% quarter over quarter\nprimarily due to a temporary increase in field expenses during the tie-in of\nthe new production. The Company expects that ultimately the higher production\nlevels will lead to a reduction of operating expenses as higher production\nvolumes provide economies of scale.\n\n\nOUTLOOK\n\n\nEarly this year, Terra Energy announced its Capital Expenditure Plan for\n2007, which reflected the two primary objectives set by management and by the\nBoard of Directors for the year. The first objective was the completion of\nfour major infrastructure projects in our Fort St. John Core Operating Area,\nwhich were targeted at bringing additional volumes of 'behind-pipe' gas\nreserves on production. The s...