Terax Energy Reports Barnett Shale Initial Oil and Gas Revenues
Thursday, August 3rd 2006
Terax Energy Inc.has announced oil and gas net revenues of approximately $133,000 for the month of June 2006, based on production of its first three wells in Erath County, Texas, targeting the Barnett Shale Formation.
Terax’s net gas sales from the Mitchell #1-H, #2-H and #3-H wells were approximately $103,836 for 16,797 net mmbtu — an average price of $6.18 per mmbtu. The net oil sales were approximately $31,267 for 469 net bbls — an average price of $66.64 per barrel.
“We are pleased to announce Terax’s first significant revenue generated from our drilling efforts in the expansion area of the Barnett Shale,” said Lawrence Finn, president, chief executive officer and chief financial officer of Terax. “We are using the natural gas production rates from our first three wells to help guide the completion efforts for the Mitchell #4-H, #5-H and #6-H wells. We look forward to increasing production and revenue in the third quarter.”
About Terax Energy
Terax Energy Inc. (OTCBB: TERX – News) is an independent gas exploration, development and production company, headquartered in Dallas. The sole focus for Terax is the optimal exploitation and development of approximately 27,500 gross acres in two mostly contiguous blocks, consisting of prospective Barnett Shale development acreage located in Erath and Comanche Counties, Texas. For more information, visit http://www.teraxenergy.com.
Information Regarding Forward-Looking Statements:
Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions in the Private Securities Legislation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause Terax’s actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things: volatility of natural resource prices; product demand; market competition and risks inherent in Terax’s operations. These and other risks are described in Terax’s Annual Report or Form 10-K and other filings with the Securities and Exchange Commission.
Source: Terax Energy Inc.
