Terra energy To Sell MonTney aSSeTS

Terra Energy Corp. announced that Crew Energy Inc. has exercised the option to purchase the balance of Terra’s Montney assets in northeast British Columbia for a purchase price of $36 million.On February 28, 2013, the Company granted Crew an option to acquire the balance of its unconventional Montney assets located in northeast British Columbia for a purchase price of $36 million, subject to typical industry adjustments, by way of a combination of cash or common shares of Crew, with a minimum cash component of $10 million. The option contained restrictions on assignment and had to be exercised by Crew on or before June 3, 2013, with a closing to occur on or before July 9, 2013.On June 3, 2013, Crew elected to exercise its option to purchase the balance of Terra’s Montney assets. The companies have also entered into a fully executed purchase and sale agreement in respect of this sale. Crew will have until 10 days prior to closing in order to notify Terra of the combination of cash and shares comprising the purchase price, providing that the purchase price includes a minimum cash component of $10 million.Terra intends to utilize the net proceeds from this sale to further reduce its indebtedness. Terra’s production and cash flow will remain unchanged as a result of this sale as the assets included in this transaction have no current production attributed to them.

SaSKaTCHeWan BeST PlaCe In CanaDa To

InVeST In oIl anD gaS

Saskatchewan is ranked best in Canada as the place for oil and gas investment, according to the 2011 Global Petroleum Survey released today by the Fraser Institute. The Institute noted Saskatchewan offers investors confidence in a stable, competitive royalty and regulatory structure. Energy and Resources Minister Bill Boyd said the Fraser Institute’s findings

show the results of Saskatchewan’s commitment to sound fiscal policy. “A stable, predictable royalty and taxation framework is key to attracting new investment and maintaining the robust growth of our economy,” Boyd said. “Saskatchewan’s rank as Canada’s preferred province to invest is testament to the importance of that stability. Our government is committed to moving Saskatchewan forward, and we will continue to offer the business climate that is essential to keep our province growing.” Saskatchewan moved up from second place last year to be ranked the best in the country out of the ten provinces and territories rated this year. Internationally, Saskatchewan was ranked 11th best in the world out of the 136 different provinces, states and countries that the Fraser Institute assessed worldwide. That also is up from Saskatchewan’s 17th place ranking last year. Of Saskatchewan’s main competitors for investment capital, Alberta was ranked sixth in Canada and 51st worldwide, while British Columbia was ranked eighth in Canada and 69th in the world. Newfoundland and Labrador was ranked fifth in Canada and 50th in the world. This year’s survey evaluated 136 different jurisdictions across Canada and around the world.

The exploration and development budgets of companies who participated in the survey account for more than 60 per cent of annual spending on a global basis.

CanaDIan oIl PIPelIne BloCKeD

Canadian pipeline company Enbridge hasn’t allayed concerns

its Northern Gateway oil pipeline would present an environmental threat, British Columbia said.Enbridge plans to build the $6 billion Northern Gateway pipeline to the West Coast face opposition from provincial and environmental leaders concerned about the safety of transporting oil sands from Alberta province.The provincial government

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issued a letter to a federal review panel saying Enbridge hasn’t done enough to allay concerns.“It is not clear from the evidence that [the company] will in fact be able to respond effectively to spills either from the pipeline itself, or from tankers transporting diluted bitumen from the proposed Kitimat terminal,” the Vancouver Sun quoted the provincial government as saying.Provincial Energy Minister Terry Lake told the newspaper last week regional authorities don’t think the project should go forward. Most of the Canadian crude oil export market is dependent on the United States though Canadian Prime Minister Stephen Harper has tried to woo Asian economies

to the energy sector by backing oil projects for the western coastEnbridge Vice President for Northern Gateway Janet Holder said the company was working to make revisions to the project proposal to ally provincial concerns.

CanaDIan oIl ouTPuT To More

THan DouBle By 2030 -STuDy

* Canada crude output seen at 6.7 mln bpd by 2030* 2015 oil production 3.9 mln bpd, 2020 at 4.9 mln bpd* Study sees higher oil sand, conventional production* ‘Collection of pipelines’

needed to handle additional oilCALGARY, Alberta, June 5 (Reuters) - Canada’s most influential oil lobby boosted its long-term forecast for the country’s oil production as it expects higher output from the oil sands and a resurgence in conventional oil drilling despite near-term constraints on pipeline capacity.The Canadian Association of Petroleum Producers (CAPP) raised its estimate for 2030 production to 6.7 million barrels per day in a closely watched annual outlook for Canada’s oil industry, up from 6.2 million bpd it forecast a year earlier.Output from the United States’s top energy supplier averaged 3.2 million barrels per day in 2012 and is expected to grow to 3.9 million bpd

by 2015. By 2020, production will be 4.9 million bpd, 200,000 bpd more than CAPP estimated a year ago.That growth will come even as the industry waits on U.S. approval for TransCanada’s Corp’s contentious Keystone XL pipeline project.Canada’s oil production will bump up against the country’s export pipeline capacity as soon as next year, according to the study. While rail shipments can take some of the excess production, new pipelines will be needed or the industry will see further discounting of Canadian oil as supply builds and is unable to reach markets.“The forecast is contingent on having the pipeline capacity there,” said Greg Stringham, vice president, markets,

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for the lobby group. “But it’s not one pipeline, not just Keystone or a line going east. We need a collection of pipelines to move this additional oil.”Canada’s pipeline network can currently handle 3.6 million barrels per day.

June CanaDIan oIl ConTraCT gaInS

aS MarKeT aWaITS Kearl ouTPuT

Canadian heavy oil for June delivery strengthened on the spot market as traders speculated that first delivery of supply from the Kearl oil-sands project may be delayed until the third quarter. Production from the 110,000 barrel a day Kearl project in Alberta will “commence in the coming days,” Pius Rolheiser, a spokesman for Exxon Mobil Corp.’s Calgary subsidiary Imperial Oil Ltd. (IMO), said in an e-mail yesterday. Rolheiser also said April 1 that first production would come “in the next few days.” Kearl oil could reach the market by June, since it will take roughly two months from production to delivery, though that date could slip, FirstEnergy Capital Corp. analyst Michael Dunn said in a telephone interview from Calgary. “Since first oil hasn’t yet occurred, there’s more chance that could slip into July as days tick by,” Dunn said. The price of Western Canada Select for June delivery strengthened 50 cents to a $15.25-a-barrel discount to U.S. West Texas Intermediate, according to Calgary oil broker Net Energy Inc. The

grade is a heavy blend that includes diluted oil-sands bitumen. When new production from Kearl arrives in the spot market, it is expected to increase supplies and lower prices. Any delay in production into July would help support prices in June, Dunn said. May Delivery The front-month May contract for Western Canada Select weakened 45 cents to a discount of $12.35 a barrel, Net Energy said. The grade reached its strongest price relative to WTI in six months on April 5, according to data compiled by Bloomberg. May WCS prices have strengthened amid a seasonal decline in production from Alberta during the so-called spring breakup, when warmer weather turns roads and drilling sites in remote areas to mud, slowing production. The Canadian oil rig count dropped by 30 to 117 last week, down from this year’s high of 509 during the week ended March 1, Houston oil field-services company Baker Hughes Inc. (BHI) said April 5. The price of Syncrude, a light oil produced from oil-sands upgraders, strengthened by 20 cents to a $9.20 premium to WTI, according to Net Energy data.

PanTerra reSourCe To Sell CenTral

alBerTa aSSeTS for $3.4MM

PanTerra Resource Corp. has agreed to sell a 60-percent working interest in its Carrot Creek Cardium assets of Central Alberta for $3.4 million dollars. The

company, which holds 100-percent working interest in the project, will now hold a 40-percent stake.A letter of intent has been signed and a definitive purchase and sale agreement is being prepared for execution, the operator said. Carrot Creek Cardium consists of approximately 2,080 net acres.PanTerra is selling the assets to reduce debt and to provide additional funds for its current credit facilities. The Alberta-based company will also use the proceeds to provide additional funds for direct participation in the Tomahawk gas gathering system and the Carrot Creek Phase II water-flood project.Headquartered in Calgary, PanTerra is a producing oil and gas company that focuses on the exploration and development of conventional and unconventional potential in Western Canada. It holds rights in excess of 1 million acres in various properties throughout the region.

HyDro oTTaWa reCognIzeD WITH ‘BeST CoMMunITy CaMPaIgn’ aWarD

Hydro Ottawa Recognized with ‘Best Community Campaign’ Award Hydro Ottawa is honoured to be the recipient of this year’s United Way Ottawa’s ‘Best Community Campaign’ award. This distinction was awarded to Hydro Ottawa during yesterday’s United Way Ottawa Community Builder of the Year Awards Gala.In 2012, Hydro Ottawa ran its most successful workplace campaign to date raising a record $201,905

for the annual campaign. This was made possible through employee donations, fundraising events and corporate matching dollars. In all, Hydro Ottawa’s campaigns have raised $1.3 million over the past 12 years.Our award-winning campaign included a 10 km relay that saw a group of employees run from our Merivale Road office to our head office located on Albion Road North and a series of fundraising events that included a bake sale, chili cook-off and an online auction.Hydro Ottawa is proud to be the largest donor to the annual United Way Ottawa Community Campaign among more than 100 companies in the Construction, Manufacturing and Services sector for 2011 and 2012.The company’s matching funds are directed to the Brighter Tomorrows Fund, which helps agencies that serve people who are homeless or at risk of being homeless by funding projects that improve the energy efficiency of their facilities or buildings.

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