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Terra Nova maps oil and gas region in South Australia

Terra Nova Energy has successfully completed the shooting of a 127 km2 3D seismic program on Petroleum Exploration License ("PEL") 112 in the Cooper Eromanga basin of South Australia.

The company has initiated the processing of this data volume, in preparation for interpretation. Terra Nova Energy is an oil and gas company based in Calgary, Canada.

Preliminary results indicate very good seismic data quality in the intervals containing the exploration targets.

This data was acquired to both identify new prospects and to mature numerous geological leads previously identified from 2D seismic on this block.

Terra Nova anticipates seismic interpretation to be concluded and drillable locations selected by mid-December 2012.

Terra Nova is currently in the process of securing a drilling rig with plans to drill up to six wells in 2013. It is anticipated that drilling of the first well will commence in Q1 2013 on PEL 112, subject to rig availability.

On PEL 444, Terra Nova is proceeding to model a 150 km2 3D seismic program in order to secure a license to complete the project in 2013.

Encouraging drilling results continue in the Cooper Eromanga basin on lands geologically on trend with Terra Nova's PEL 112 and PEL 444 blocks.

Recent announcements by other oil and gas companies active in the Cooper Eromanga basin indicate: a new, significant oil discovery, Mustang 1, on PEL 111 (22 km from PEL 444); a successful development step-out at Butlers #5 on PEL 92 (25 km from PEL 112) and; increased drilling activity for 2013.

When asked about these positive indicators, Terra Nova's Chairman and CEO, Mr. Norman Mackenzie, stated, "Terra Nova is excited about its exploration and drilling strategy. The application of 3D seismic will dramatically increase the prospects for success in the Cooper Eromanga basin."

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