Terra Energy Adds Production From Eight Mile South

Terra Energy Corp. reported that its Eight Mile South gas field has now been placed on production, adding approximately 500 BOED to the Company's production base.

"This represents the first production from the Company's Eight Mile South gas field." said Cas H. Morel, President and CEO of Terra Energy. "As we continue with our drilling program and advance our development of the entire field, the information from this early production will be important in determining an optimal exploitation strategy."

Terra Energy previously announced that it had arranged a 3.25 MMCFD commitment of firm processing capacity from a third party mid-streamer. The third party mid-streamer constructed and recently commissioned the West Doe Gas Plant during 2007. However, as a result of delays in obtaining surface access, the third party mid-streamer was delayed in the construction of the connecting flowline/pipeline to our Eight Mile South gas field. The completion of this project adds approximately 500 BOED of incremental production, bringing the Company's current production total to approximately 4,500 BOED.

In November of 2007, Terra Energy also announced the drilling (together with an industry partner) of a deep Devonian exploration well at Monias, British Columbia. This well has been cased and is currently undergoing completion operations and testing. Results will be released following testing.