TTR Titanium Transportation Group Inc

Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company") is
pleased to announce that its Board of Directors has expanded the 2008 Capital
Expenditure Plan and Budget. The Company now plans to spend a total of
approximately $52 Million, virtually all of which will be spent in its Fort St.
John Core Area. The expanded plan calls for the Company to drill a total of 16
gross wells and is targeting an exit production rate for 2008 of 5,700 BOED.


"The combination of higher forecast natural gas prices and the elimination of
our debt allows Terra Energy to accelerate our organic growth", said Cas H.
Morel, President and Chief Executive Officer. "Terra Energy has been considered
to be a 'value' play in the marketplace for some time, but is now poised to
become a compelling 'growth' story for investors."


Terra Energy will be carrying out three principal activities this year. The
first involves the development of the Company's Sunrise Gas Field. Terra
Energy's only major infrastructure project for 2008 is the construction of a
25.4 kilometre, 8" pipeline connecting its Sunrise Gas Field to its Tower
Dehydration and Compression Facility, together with the installation of a second
compressor which will expand the design capacity of the facility to
approximately 20 MMcf per day. The expansion of the Tower facility is required
to handle anticipated production volumes coming onstream this year from North
Eight Mile and Sunrise. Included in the expanded capital plan are a minimum of 7
wells in Sunrise, each of which will be targeting the Doig sand as the primary
target and each of which will have one or more secondary targets.


The Company's second principal activity for 2008 will be the exploitation of the
Company's Red Creek Oil Pool. The Company plans two projects at Red Creek in
2008. The first is the re-entry and recompletion of an existing horizontal well
using multi-stage frac techniques with a view towards ascertaining the most cost
efficient method of extracting the oil. The second project planned for Red Creek
is the drilling of a vertical well with a view towards expanding the total size
of the pool to the west and to the north. It is hoped that the two projects
together will set the Company up for a major oil development opportunity for
2009.


The third principal activity for 2008 consists of a series of exploration plays
in the Fort St. John area. The Company has just under 200 net sections of land
in the vicinity of Fort St. John, which area has demonstrated hydrocarbon
prospectivity in more than 20 different formations. Included in the exploration
plans are two or more wells which could be considered high impact plays and
which could provide the Company with additional development drilling
opportunities in 2009.


The total budget of $52 million is broken down into approximately 60% drilling
and completions costs, approximately 30% equipping and infrastructure, and the
remaining 10% being allocated to land, seismic and other costs. Of significance
is the reduction of the percentage of the budget being allocated to
infrastructure costs as compared to 2006 and 2007. With the substantial capital
investment which was made by Terra Energy over the past two years in pipelines
and facilities, the Company can now dedicate a higher percentage of its capital
on growing the production base and reserves. With most of the major
infrastructure now in place, the Company can look forward to being able to
tie-in new production without undue delays.


The Board of Directors also approved the ratification of the granting of
1,417,700 replacement stock options to participants in the Company's Employee
Stock Option Plan, which replaced stock options exercised during the period
April 1, 2008 to June 24, 2008, of which 2,500 stock options were granted to a
senior officer and 35,000 stock options were granted to a junior officer. The
total number of stock options currently outstanding under the Company's Employee
Stock Option Plan is approximately 6,550,000 or approximately 8.6% of the
Company's outstanding commons shares.


Guidance for 2008

With the expanded 2008 Capital Expenditure Plan, the Company is targeting a
production exit rate of approximately 5,700 BOED. Total Revenues are forecast to
be approximately $85 Million based upon an estimated natural gas price of $8.75
per Mcf and $100 per bbl of oil, resulting in a forecast cash flow from
operations of approximately $40 million or $0.52 per common share (basic).


READER ADVISORY

A BOE conversion ratio of six thousand cubic feet per barrel (6 mcf/bbl) of
natural gas to barrels of oil equivalence is based upon an energy equivalency
conversion method primarily applicable at the burner tip and does not represent
a value equivalency for the individual products at the wellhead. Such disclosure
of BOE's may be misleading, particularly if used in isolation.


The media release may contain forward-looking statements including expectations
of future production, cash flow and earnings. These statements are based on
current expectations that involve a number of risks and uncertainties, which
could cause actual results to differ from those anticipated. These risks
include, but are not limited to: the risks associated with the oil and gas
industry (eg., operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or development projects
or capital expenditures; the uncertainty of reserve estimates; the uncertainty
of estimates and projections relating to production, costs and expenses, and
health, safety and environmental risks), commodity price, price and exchange
rate fluctuation and uncertainties resulting from potential delays or changes in
plans with respect to exploration or development projects or capital
expenditures. Additional information on these and other factors that could
affect Terra Energy's operations or financial results are included in Terra
Energy's reports on file with Canadian securities regulatory authorities.


Terra Energy is a junior oil and gas company engaged in the exploration for, and
development and production of, natural gas and oil in Western Canada. Terra
Energy's common shares trade on the TSX Venture Exchange under the symbol 'TTR'.

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