Terrace Energy Corp. provide the following operational update:
The Company has made significant progress on initiating its "Cutlass Project" in Dimmitt and LaSalle Counties, TX. Access roads, water wells and the drilling pad for the West #1A drilling location are completed. Pioneer Rig #28 has been moved onto the Company's leases and drilling has commenced on the first of its two planned horizontal wells. The well is currently at intermediate pipe depth of 7200' and the Company is preparing to run 9 5/8" casing. Plans are to drill a vertical pilot hole to evaluate the cretaceous section, then turn the well horizontal and drill approximately 4500 of lateral section in the Eagle Ford Formation at approximately 8000' TVD.
Construction of the East #1 drilling pad for the Company's second well in LaSalle County is approximately 75% complete. The Company plans to move Rig #28 to this drilling project immediately after concluding the drilling phase of the West #1A well. Access roads and other infrastructure built in conjunction with the West #1A will be used to service this location as well as further drilling on both the Dimmitt County and LaSalle County leases.