Terra Energy Corp. said March 18 that all of its operated/licensed wells and facilities were shut-in in Alberta and British Columbia. Terra told Alberta Energy Regulator, the British Columbia Oil & Gas Commission and its lender, Canadian Western Bank, that it shut in the wells because it has no financial means to carry on the operations.
The shutting in process is underway for all operated/licensed wells and facilities, Terra said.
The cost of operations, including processing and transportation of commodities, field labor and production costs, royalties and administrative expenses, exceed gross revenues at current commodity pricing levels.
Canadian Western Bank declined to provide further financial support to Terra, the company said.
Since September, Terra has worked with financial advisers to monetize any or all assets and shares and to reorganize and restructure the company.
The directors have determined that Terra's business is no longer viable; as a result, Calgary, Alberta-based Terra said that its directors and officers resigned.
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