Terra Energy Approves $37MM Budget, Capex Plan Focused on Canadian Assets
Terra Energy has provided guidance in relation to 2009 and has announced its Capital Expenditure Plan and Budget ("Capex Plan") for 2009.
Cash flow from operations has been forecasted at approximately $38 million for 2009 based upon an estimated average natural gas price of $5.95 per GJ for the calendar year, an estimated average oil price of $45.00 per barrel and an average 2009 production rate by the Company of 6,100 boed.
Terra Energy is pleased to announce that its board of directors has approved the Capex Plan for 2009 in the amount of approximately $37 Million. The Company's 2009 Capex Plan is designed to be funded entirely from the Company's cash flow from operations and targeted at keeping the Company's production at or above its current production levels.
"As the credit, equity and commodity markets continue to be plagued with uncertainty, the Company will continue to act prudently and live within its means. In the meantime, our strong balance sheet affords us the opportunity of not only growing organically through the drill bit but also to consider accretive transactions." said Cas H. Morel, President and CEO of Terra Energy, "The current environment may give rise to many acquisition opportunities which have even better metrics than our $13.00 historic F&D cost."
The 2009 Capex Plan will be focused on opportunities within the Company's Fort St. John core area and the greater Peace River arch, where the Company owns over 250,000 net acres of undeveloped land. The Company will continue to drill natural gas opportunities having a low development risk or alternatively exploration wells having multi-zone potential. The Company is in the process of building an inventory of oil targeted prospects.
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