August 20, 2013 - Vancouver, British Columbia. Terra Nova Energy Ltd. (TSXV: TGC; OTCQX: TNVMF) ("Terra Nova" or "the Company') updates its shareholders and other interested parties on its Cooper Basin strategy and operations.
"Notwithstanding the lack of success on our Wolfman #1 exploration well we remain highly confident about the potential of our Cooper Basin assets," stated Henry Aldorf, Terra Nova's acting CEO. "By no means are we abandoning PEL 112, however further study is required before we begin another exploration campaign on this license. While that work is underway we are moving ahead with exploration of PEL 444 as quickly as possible."
Acquisition of 80 square kilometers of 3D seismic data on PEL 444 (the "Wingman Survey") began May 28, 2013, and was completed on July 2, 2013. The Wingman Survey will fulfill the minimum work requirements for PEL 444 License Year Three. Processing of data from the Wingman Survey is 30% complete. Final interpretation of survey results is anticipated in October 2013. The timing of follow-on drilling on PEL 444 will be announced when determined.
Terra Nova currently has earned a 25.8333% working interest in PEL 112 (comprised of 2,196 square kilometers - 542,643 gross acres) and upon delivering the completed 3D seismic report on PEL 444 (comprised of 2,358 square kilometers - 582,674 gross acres) it will have earned a 25.8333% interest in that license as well. Both licenses are located on the southwestern flank of the prolific Cooper Basin in the State of South Australia. The Company may earn an additional 5.8333% working interest in both licenses for each of five additional exploration wells drilled, irrespective of which license the wells are drilled on.
Investment in Australia's Cooper Basin remains strong. During February 2013, Chevron announced plans to invest up to $349 million with Australia's Beach Energy in a search for Cooper Basin shale gas. Infrastructure investment continues with the addition of bridges, roads and product flow lines. Beach Energy has stated that the use of 3D seismic has improved its drilling success rate on the western flank from 25% for prospects defined by 2D seismic to 50% based on 3D seismic data.
During 2012 and 2013 (to date), Western Flank oil discoveries have been made near PEL 112 in PEL 91 (Kalladeina 2, Sceale 1, Congony 1, Pennington 1 and Bauer North 1), PEL 92 (Rincon North1, Windmill 1), and; further north near PEL 444 in PEL 111 (Mustang 1 - flowing 2,500 barrels per day on drill stem test), PEL 104 (Spitfire 2), and PPL 240 (the Snatcher field - producing over 1,000 barrels per day). These discoveries flowed from the Namur sandstone and Birkhead Formation. These recent discoveries add to a robust history of area success stories which continue to identify the western flank of the Cooper Basin as one of Australia's hot oil trends.
Terra Nova and its joint venture partners are evaluating log and sidewall core data generated during its drilling of the Wolfman #1 exploration well on PEL 112. The drilling of Wolfman #1 fulfills the minimum work requirement for PEL 112 License Year Five. Seismic data has been acquired on only 5.7% (31,382 of 542,643 acres) of the land comprising PEL 112. Terra Nova and its partners believe significant potential remains for future seismic to identify migration trends and additional prospects on PEL 112 during the next exploration term.
About Terra Nova Energy Ltd.
Terra Nova Energy Ltd. is an 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" and its ordinary shares trade in the U.S. on the OTCQX marketplace under the symbol "TNVMF."
For more information please contact:
Terra Nova Energy Ltd.
+41 44 217 4804
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. Findings by other oil and gas issuers does not necessarily indicate that Terra Nova will be successful in making such findings in the Western Flank. 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.