Terrex Announces Management Appointments and Operations Update

CALGARY, Nov. 1, 2011 /PRNewswire/ - Terrex Energy Inc. ("Terrex" or the "Company") (TSX-V:  TER) is pleased to announce the strengthening of its management and technical teams through the addition of Mr. Tony Berthelet, P. Eng., and Mr. Marten Perdue, P. Eng. and provide a brief update on its enhanced oil recovery (EOR) projects at Strathmore and Two Creek in Alberta.

Mr. Berthelet is joining Terrex in the position of Vice-President, Operations and Production.  He is a professional engineer with 14 years of production and operation engineering experience with expertise in the delivery of water floods and EOR projects in Canada and internationally. He was most recently Business Unit Manager - Oil and EOR for an intermediate independent oil and gas company where he led a team of 60 professionals producing 28,000 barrels of oil equivalent. Tony has had increasing levels of responsibilities as an engineer at several previous companies.  Tony is a registered Professional Engineer with APEGGA and a registered Project Management Professional (PMP) with the Project Management Institute (PMI). He graduated from the University of Saskatchewan in 1998 with a B.Sc. in Geological Engineering.

In conjunction with this announcement, and in accordance with the company's previously approved stock option plan, the board of directors granted 1.2 million options to Mr. Berthelet to purchase common shares in the capital of the company. The options each have an exercise price of 13 cents per share, are exercisable for a period of five years and vest in one-third increments with one-third vesting immediately and the remainder on the first and second anniversaries from the date of grant. This grant of options is subject to acceptance by the TSX Venture Exchange.

Mr. Perdue has accepted the position of Sr. Operations Manager with responsibility for the construction and commissioning of the Company ASP facilities at Strathmore.  Marten is a professional engineer with over 25 years of experience with expertise in facilities, operations and project management. Marten has worked for several major and junior oil and gas companies and has been responsible for the planning, execution and start-up of multiple multi-million dollar development and infra-structure projects. He graduated from the University of Alberta in 1985 with a B.Sc. in Mechanical Engineering.

Operations Update

The Strathmore Chemical EOR facilities and water treatment plant builds are complete; and will be moved in place when site readiness is finished. We expect to begin this construction at the end of November 2011 with chemical injection and the restart of the water flood anticipated to begin early in 2012.

At Two Creek, technical evaluations of the A and B Pools are underway to design the optimal EOR development plans.  Two horizontal in-fill drill sites for wells are being readied to better develop the A Pool and add additional production prior to implementing the EOR programs.

The Strathmore and Two Creek properties are characterized by large original oil-in-place reservoirs of about 20 million barrels each according to the ERCB, with relatively low recoveries to date, of approximately 25 per cent and 12 percent respectively.  We believe that optimization and enhanced oil recovery programs, consistent with our overall business plan, can significantly increase production and recoverable reserves.

Additionally, Terrex continues to identify and assess potential property acquisitions that are appropriate for enhanced oil recovery and production optimization. Terrex looks to take advantage of high impact and large original oil-in-place reservoirs and existing infrastructure.

About Terrex Energy Inc.

Terrex Energy Inc. is a Calgary-based junior oil company that specializes in the application of proven Enhanced Oil Recovery (EOR) methods to improve oil production from mature pools.  We target underexploited and undercapitalized light-to-medium oil reservoirs in Western Canada.  Our shares are listed on the TSX Venture Exchange under the symbol 'TER'.

Neither the TSV Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. In particular, this press release contains forward-looking statements pertaining to expectations of management regarding the the characteristics of the property, including the expectation that the property will be a good candidate for Improved and Enhanced Oil Recovery programs; the expected timing of the planning, evaluation and development of the programs, and the success of such programs. In addition, statements relating to "reserves" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and can be profitably produced in the future. 

Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. Assumptions include, among other things: future capital expenditure levels; the ability to secure regulatory approval, future oil and natural gas prices; future oil and natural gas production levels; the success of IOR and EOR programs; the ability to obtain equipment in a timely manner to carry out development activities; the ability to market oil and natural gas successfully; and the impact of increasing competition. 

Although Terrex believes that the expectations reflected in the forward looking statements contained in this press release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause Terrex's actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the following: volatility in market prices for oil and natural gas; failure to complete planned financing activities; general economic conditions in Canada; and the other factors.  Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this news release are made as of the date hereof and Terrex does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

SOURCE Terrex Energy Inc