April 14, 2008 - 12:53:03 PM

Terra Energy Agrees to Sell Montney Asset for $67.1 Million


CALGARY, ALBERTA--(Marketwire - April 14, 2008) - Terra Energy Corp. ("Terra
Energy" or the "Company") (TSX VENTURE:TTR) is pleased to announce that it has
agreed to sell its Montney petroleum and natural gas rights in North East
British Columbia for an aggregate purchase price of Sixty Seven Million One
Hundred Thousand Dollars Cdn. ($67,100,000.00).

Further to the Company's media release dated February 14, 2008, the sale of
Montney mineral rights has been marketed through Tristone Capital Inc. The
sale was focused on and was limited to the Montney formation in approximately
110 gross sections (28,000 hectares) of land, leaving those mineral rights
held by the Company in formations, both above and below the Montney,
unaffected by the sale process. The sales agreements specify an effective date
of April 1, 2008 for adjustment purposes and are expected to close on or about
May 15, 2008.

The proceeds of sale will eliminate the debt of the Company and leave the
Company with positive working capital. The aggregate purchase price translates
into approximately Ninety Cents ($ 0.90) per basic common share. Terra Energy
does not currently have any production from the Montney formation at Fort St.
John, leaving the Company's production base untouched. As a result of the
early stage of development of the Montney formation on the Company's lands and
the fact that few Montney completions have been performed, the Company's most
recent engineered reserves report prepared as at December 31, 2007 (which
reports the Company's Total Proved + Probable reserves at approximately
17,195,000 BOEs), attributed only minor proved and probable reserves to wells
having Montney completions. In this respect, the sale by the Company of its
Montney asset will result in an increase of the Company's previously announced
Net Asset Value commensurate with the sale proceeds, from approximately $2.43
per common share to approximately $3.30 per common share, based upon January
1, 2008 forecast pricing.

It is expected that the sale of the Montney asset to two industry partners
will create other advantages for the Company in the future. The sale should
result in a faster pace of resource development in the Fort St. John area and
improved utilization of the Company's network of pipelines and infrastructure.