Calgary-based Terra Nova Energy Ltd. ( TSX VENTURE : TGC ) has entered into a Letter of Intent (LOI) with Hunt Energy & Minerals PTY., SA., an Australian drilling contractor with more than 25 years drilling experience in the Cooper-Eromanga Basin in Australia. The LOI anticipates the engagement of Hunt to provide its Rig No. 3 for Terra Nova's drilling program on License PEL 112 in South Australia. Terra Nova is contemplating drilling up to 3 wells commencing upon receiving requisite government and stakeholder approvals. It is anticipated that drilling will start in the first quarter of 2013. The LOI is subject to completion of a formal drilling contract expected by November 30, 2012.

This action results from preliminary review of certain processed data from the recently completed 3D seismic program on the PEL 112 license. Further interpretation of the seismic data is ongoing.