Exterra Picks Up Production in West Texas

Exterra Energy Inc. announced that the company has commenced a start up sequence designed to bring its oil and gas assets in West Texas back into full production. Three wells are currently online and are producing an average of 3 to 5 barrels of oil per day with two additional wells set to return to production imminently. Exterra will continue to reactivate the balance of the wells over the next several months.

Exterra Energy owns a 75% working interest (56.25% net revenue interest) in the West Texas Permian Basin oil & gas leases, known as the University Lands. These leases were acquired in December 2006 and consist of twelve 10-acre well sites in the West Cardinal field located in Pecos County approximately 150 miles south of Midland, Texas as well as a 12-mile natural gas pipeline. In October 2007, the Company completed a salt water disposal well to allow the reactivation of the field and bring these existing wells onto production.

"The full reactivation program in Pecos County will immediately add to Exterra's production and cash flow," said James Romano, Director, Exterra Energy. "Our management team is extremely pleased with the growth and development of the company's business plan and operations over the past year. As the price of oil and gas continue to strengthen the Company feels that it is well positioned for steady growth."