January 24, 2013 - Calgary, Alberta - Terra Nova Energy Ltd. ("Terra Nova") has completed its interpretation of the Mulka 127 Km2 3D seismic program, shot on PEL 112 in South Australia, Australia, between July and September 2012. This completes the initial earning phase of the Farmin with Holloman whereby Terra Nova Energy Ltd. has now earned a 20% undivided working interest in PEL 112.
Terra Nova has identified four drillable exploration prospects on the Mulka Survey. These prospects are similar geologically to producing structures observed in the existing oil pools to the north, including the Butlers, Perlubie and Parsons fields. The principle reservoir target in the PEL 112 prospects is the Namur sandstone that can produce at rates in excess of 1000 barrels of oil per day within individual wells in the aforementioned fields. Terra Nova is contemplating up to 3 exploratory wells to be drilled to Warburton Basement on the 3D surveyed area, upon receiving requisite government and stakeholder approvals for its drilling locations and programs. In November of 2012, Terra Nova entered into an MOU with an Australian drilling contractor, Hunt Energy Services Ltd. ("Hunt") and expects to sign a drilling contract with Hunt by the end of January, 2013.
Terra Nova entered into an LOI with Geokinetics (Australasia) Pty. Ltd., on December 23, 2012 for the purpose of conducting a 150 Km2 3D seismic program on PEL 444 license in South Australia, designed to mature exploration prospects. The Corporation anticipates that seismic work will commence in the second quarter of 2013.
"I am very pleased that the seismic program on PEL 112, covering only a fraction of the license, has produced four well defined exploration prospects, which will lead to an exciting drilling program. Furthermore, our business will continue to expand as we execute our seismic program on PEL 444", said Henry Aldorf Chairman and acting CEO.
About Terra Nova Energy Ltd.
Terra Nova Energy Ltd. is a Calgary based oil and gas company with a right to acquire up to a 55% working interest in two onshore petroleum exploration licenses ("PELs"), being PEL 112 and PEL 444, located on the western flank of the Cooper Eromanga Basin in the State of South Australia, Australia. Its common shares trade on the TSX Venture Exchange under the symbol "TGC".
For more information please contact:
Terra Nova Energy Ltd.
Acting Chief Executive Officer
Forward looking information
This news release contains forward-looking information relating to Terra Nova's intentions to conduct the seismic program and subsequent drilling programs and other statements that are not historical facts. Such forward-looking information is subject to important risks and uncertainties that could cause actual results to differ materially from what is currently expected, for example: risks related to oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, competition from other producers, inability to retain drilling rigs and other services, reliance on key personnel, and insurance risks. In making such forward-looking statements, Terra Nova has relied upon certain assumptions relating to geological settings, commodity prices, the stability of markets and currencies, the availability of capital, and Terra Nova's ability to continue with the seismic and drilling programs. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While Terra Nova may elect to, Terra Nova is under no obligation and does not undertake to update this information at any particular time, except as required by applicable securities law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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