CALGARY, ALBERTA–(Marketwired – March 18, 2016) – Terra Energy Corp. (TSX:TT) (“Terra” or the “Company“) announces that its lender, Canadian Western Bank (“CWB“), has made demand upon Terra, as debtor, and Terra Energy Partnership, Terra’s wholly-owned subsidiaries, Constar Resources Ltd., Noram Energy Worx Inc. and 1289710 Alberta Ltd., as guarantors, (collectively, the “Guarantors“) for payment in full of Terra’s outstanding indebtedness in the aggregate amount of approximately $15.9 million plus accrued interest, costs and fees by Monday, March 28, 2016 at 9:00 a.m. In addition, CWB has provided Terra and each of the Guarantors with a Notice of Intention to Enforce Security pursuant to subsection 244(1) of the Bankruptcy and Insolvency Act (Canada).
The Company has undertaken a process of shutting-in all of its operated/licensed wells and facilities in order to secure and enhance the safety of its operations.
The Company also announces that it has terminated the employment of most of its employees with the exception of personnel engaged in the shutting-in of its operated licensed wells and facilities.