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Aug. 8, 2011 /PRNewswire/ -- Terra Resources, PLC, a
London, UK based independent oil and gas company listed on the Frankfurt Stock Exchange under the symbol "T31" ("Terra Resources") has entered into a partnership with Hendon Energy Fund 2011, LP ("Hendon"). Hendon has agreed to partner with Terra Resources in fulfilling its funding commitments, estimated at
$90,000,000, for the development of 85,000 acre oil and gas concession in Kalmykia,
Hendon holds a 44% ownership interest in Terra Resources. An early investor in Terra, KLEL Funds, LLC, sold its position to one of Hendon's partners for
June 2011. Hendon has agreed to a financing partnership with Terra Resources in consideration for a warrant at
Euro 0.30 to purchase 10 million shares of Terra Resources common stock.
"Hendon is pleased to be participating in the financing of the Kalmykia oil and gas assets," points out Hendon Managing Director,
Ed Davis. "As a strategic oil and gas investor, we view our partnership with Terra Resources as a unique opportunity, and are excited to be invested in Kalmykia," points out Davis. "Terra welcomes Hendon as an equity partner, and looks forward to a long term beneficial relationship," posits Terra Resources' Director
Earlier this year, Terra engaged Baker Hughes (NYSE: BHI) to assist with a field development program. Previously, Terra obtained an evaluation of its contingent reserves (in accordance with NI 51-101, Sec 5.9) from Chapman Petroleum Engineering, Ltd., that indicated a fair market value for the concession of
About Hendon Energy Fund 2011, LP Hendon Energy Fund 2011, LP ("Hendon") is a recently formed private investment firm. Hendon is a long investor with a primary concentration on upstream (i.e. exploration and development) of oil and gas opportunities in the global equity markets. While the securities bought and sold by Hendon may be traded anywhere in the global equity markets, the exploration and development opportunities will be primarily in the
the United States, central
Asia, and the
Pacific Rim. Hendon's focus is long term, with many positions concentrated and illiquid during the early months of an investment. Hendon makes equity investments (1) on the open market or (2) in private transactions with (i) the Issuer or (ii) major shareholders. Hendon's goal is to generate outstanding returns on a rolling 24-36 month time horizon through the use of research across the oil and gas sector. Companies showing strong attributes will be considered for investment. Depending on the market environment, Hendon's portfolio may be leveraged or hedged.
About Terra Resources, PLC Terra Resources acquired substantial oil and gas concessions in the North Caspian Region - Kalmykia,
Russia. The fields contain 64 wells, of which 62 were producing. The wells were capped and remained non-productive because of previous low gas prices and technology that could not handle the volume produced by high pressure wells. With new skilled management and an experienced operator, Terra Resources plans to open the wells again, and secure transportation via newly built gas and oil pipeline. Of the 62 producing wells, 7 are listed as potential "Super Giant" find based upon Subsalt discovery, outlined in the new 51-101 Competent Person's Report prepared by Chapman Petroleum Engineering, Ltd. This report concludes with a "best case" reserve estimate of the concession value at
$7 to $11 Billion, with an estimated
$175 million development costs over the life of the reserves.
Forward Looking Statements This press release contains forward-looking statements, which express the current beliefs and expectations of the management of Terra Resources, PLC. Such statements are based on current expectations and are subject to risks and uncertainties, many of which are beyond our control, and could cause future results, performance, and achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Actual results could differ materially depending on a number of factors, and we caution investors not to place undue reliance on the forward-looking statements contained in this press release. These risks and uncertainties include, but are not limited to, economic conditions, the regulatory environment, loan concentrations, vendors, employees, technology, competition, and interest rates. Forward-looking statements speak only as of the date on which they are made and TERRA RESOURCES, PLC undertakes no obligation to update these forward-looking statements, even if new information becomes available in the future.www.terraresourcesplc.com
SOURCE Terra Resources, PLC