Terra shuts down after bank demands repayment

first_imgFORT ST. JOHN, B.C. — Another prominent company operating in Northeastern BC has fallen victim to the economic downturn in the oil and gas industry.Calgary-based Terra Energy has announced its cost of operations exceeds gross revenues at current commodity pricing levels and the company’s lender has declined to provide further financial support.Therefore, it says since the company has no other means of financing available, it no longer has the financial capability to carry on its operations.- Advertisement -This week’s announcement follows one at the end of last week that Terra had undertaken a process of shutting-in all of its operated/licensed wells and facilities in order to secure and enhance the safety of its operations.Now, it says all of its operated licensed wells and facilities in B.C. and Alberta have been shut-in and that Terra has terminated certain officers of the company and all of its remaining non-executive employees.It adds directors have determined that Terra’s business is no longer viable and that they and officers of the company have resigned.Advertisement Terra also confirms it has notified the aforementioned lender, Canadian Western Bank and both the BC Oil and Gas Commission and the Alberta Energy Regulator, of its shut-in initiative.Meantime, while acknowledging this issue takes him outside the area of his association’s representative responsibility, Mark Salkeld of the Petroleum Services Association of Canada says the current economic problems facing petroleum producers like Terra Energy are very similar to those facing the service, supply and manufacturing sectors P-SAC does represent.That noted, he has reintroduced the Energy East pipeline back into this debate, with this message for its critics.last_img read more