Terrace Energy Corp. (TSXV:TZR, OTCQX:TCRRF) announced that they have signed a letter of intent with  BlackBrush Oil & Gas through which they will together aacquire a 50% working interest in some oil & gas leases in South Texas.

As quoted in the press release:

The Target Acreage has the potential for 1,225 drilling locations (120 acre spacing) aimed at multiple active formations including: the Pearsall and Eagle Ford shales; and Buda and Georgetown formations. The Target Acreage is strategically located in a region of previous prolific conventional production as well as multiple successful vertical tests in the Pearsall and Eagle Ford. The Target Acreage is also covered by a 300 square mile proprietary 3-D seismic dataset. Newco will have full access to this dataset in order to plan and execute development programs.

Terrace’s President, Dave Gibbs, said:

Securing this project would represent a significant step in the Company’s evolution and would increase its net acreage position from approximately 5,000 to over 40,000 giving it a significant presence in the unconventional oil development that is taking place in South Texas.

To view the whole press release, click here.