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Value : Delivery of Potential

April 2007. Value : Delivery of Potential . Corporate Profile. Brief History. Today Full cycle E&P company focused on North-East B.C. and Peace River Arch region of AB Operations initiated in 1996 as a private company Became a public company on January 30, 2004

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Value : Delivery of Potential

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  1. April 2007 Value : Delivery of Potential

  2. Corporate Profile

  3. Brief History • Today • Full cycle E&P company focused on North-East B.C. and Peace River Arch region of AB • Operations initiated in 1996 as a private company • Became a public company on January 30, 2004 • 2004 - Acquisition of Dominion Exploration assets • Completed in December 2004 ($31mm) • Combined with existing lands, formed nucleus of Ft St. John Core Area • 2005 –Year of Exploration Success • 100% exploration drilling success (11 gross / 9.8 net) • Over 10 new pools discovered • 2006 – Focus on Infrastructure and Delineation of New Pools • Completed pipeline segments in Septimus and Central Boudreau • Advanced plans for South Peace gathering system including proposal for Peace River Crossing • Delineation and development drilling largely restricted to Boudreau and Tower

  4. Management Team • Cas H. Morel, President & CEOB.Sc., LLB, MBA 25+ years • Bud K. Love, VP Finance & CFOStartech 20+ years • Tim A. Beatty, VP Drilling and CompPanCan 20+ years • T. A. (Tim) Blair, VP LandAcclaim Energy 20+ years • John Behr, VP ExplorationDomin, Rio Alto 20+ years • Graham Collins, Manager Prod. Ops. Rigel 25+ years • Gord Oliver, Manager ExploitationStellarton 20+ years • John Hrycyk, Manager Facilities DesignApache 13+ years • Rosa Lyngberg, ControllerPWC 12+ years • John Pantazopoulos, Mgr Bus. DevelCIBC 6+ years • Over 200 years of diversified experience • Expertise in all key disciplines

  5. Board of Directors • Our Board is comprised mainly of independent members with extensive industry background and governance expertise • Ted S. Anderson – Founder, Pioneer Land & Environmental Services Ltd. • Ralph G. Evans – Petroleum engineer and former board member of the ERCB (AEUB) • Anthony R. Harvey – Businessman, extensive public company experience Fluor- Daniels • Colin P. MacDonald – Partner, Borden Ladner Gervais LLP • Cas H. Morel – President and CEO, Terra Energy Corp. • Robert D. Penner – Former senior tax partner, KPMG

  6. Strategic Land Position

  7. Production Growth

  8. Plan for 2007 • $34mm CAPEX focused on two priorities: • Priority #1 - Infrastructure - $16mm • Priority #2 - Exploration - $12.5mm • Infrastructure – Tie-in “behind pipe” reserves • Tower / Septimus – April 2007 (500 boe/d) • East Boudreau – July 2007 (500 boe/d) • South Eight Mile – Sept. 2007 (525 boe/d) • Peace River Crossing – Q4 2007 – 1,000 boe/d • Exploration– High impact locations • 10 exploration drilling locations identified in FSJ core area • Participation in 480 km2 seismic shoot • CAPEX funded through cash flow credit facility • $24mm cash flow ($7.50 gas / 3,600 boe/d prod.) • $10mm existing credit facility

  9. South Peace Gathering System

  10. East Boudreau • Significant natural gas discovery (test rate > 6.0 mmcf/d) • Estimated onstream date of July 2007 • Estimated production addition of approximately 500 boe/d

  11. South Eight Mile • Third party to construct gas processing and gathering system • Expected onstream date of September 2007 • Estimated production addition of 500 boe/d

  12. Exploration 2007 • Terra’s Ft St John core area is a lightly explored area with room for growth • There is over 25 producing zones from Devonian to Cretaceous • Terra has over 50 exploration and development opportunities identified • Terra will drill over 6 exploration wells in the Ft St John area this year, some with major potential: • Eight Mile • Taylor • West Boudreau • Deep Devonian

  13. Exploration – Eight Mile • The Doig sand is now an established producing zone Our 7-8 well discovered a new Doig trend at 3.5 mmcf/d IP • Tie-in our 3-3 and 9-4 wells this summer • Three additional wells along the main trend in 2007, two along new 7-8 trend • We are participating in a large 3D shoot over our land • New Doig prospects to be tested, as well as new plays : • Charlie Lake • Halfway • Doig Phosphate • Kiskatinaw • Devonian

  14. Exploration - Taylor • 7 sections of 100% Terra land • 3 high impact gas zones • 1 high impact oil zone • The Baldonnel, Halfway and Belloy have each produced over 100 Bcf from nearby pools • Step-out on a 2MMbbl Charlie Lake oil pool

  15. Exploration – West Boudreau • 5 sections of 100% Terra land • 2 high impact gas zones: Baldonnel and Halfway • Other potential zones in Doig, Charlie Lake, and Bluesky • Good geological indications in offsetting wells • Tie-in to Terra’s Red Creek facility

  16. Exploration – Deep Devonian • 10 sections of 100% Terra land • High impact gas deep Wabamun test • Hydrothermal dolomite on the Parkland analogies have produced over 250 Bcf • Lead offset well showed dolomite, porosity and gas, but drilled over 1km away from best location • Other potential zones in Montney, Belloy, Taylor Flats and Kiskatinaw • Modern 3D coverage showing an incredible fault with over 1000m of throw

  17. Historical Review

  18. Peer Group Analysis

  19. Why Invest in Terra Energy • Production growth / tie-ins field by field • 2,000 boe/d of behind pipe production to be brought onstream • Significant upside with return to exploration in 2007 • Over 50 exploration / development drilling prospects identified • Strategic land position with high working interest • 260 sections of land in core area of Fort St. John with W.I. of 86% • Ownership of infrastructure creates competitive advantage in the long run • Major infrastructure projects to be completed in 2007 provide framework for significant future growth • Strong Management • Significant insider ownership (>30%) • Entire asset base was built by this team

  20. Advisory • Certain statements contained in this presentation contain forward-looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar statements are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward-looking statements include, but are not limited to, references to oil and natural gas production levels; capital expenditure programs; the quantity of oil and natural gas reserves; projections of commodity prices and costs; supply and demand for oil and natural gas; expectations regarding Terra Energy Corp.’s (the “Corporation”) ability to raise capital and to continually add reserves through acquisition, exploration and development; and treatment under governmental regulatory regimes and tax laws. The Corporation’s actual results could differ materially form those anticipated in these forward-looking statements as a result of risk factors. Such risk factors include, but are not limited to: volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; geological, technical, drilling and processing problems; fluctuations in foreign exchange or interest rates and stock market volatility; and; other factors, many of which are beyond the control of the Corporation. • Readers are cautioned that the foregoing list of important factors affecting forward-looking statements is not exhaustive. Furthermore, the forward-looking statements are made as of the date of this release, and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this release are expressly qualified by this cautionary statement.

  21. Suite 970 – 333 7th Ave SW Calgary, AB T2P 2Z1 Tel: (403) 699-7777 Fax: (403) 264-7189 www.terraenergy.ca

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