Terra Energy Corp. (TSX:TT) signed a letter of intent to sell unconventional Montney assets and non-Montney assets for approximately CAD 80 million on November 6, 2012. The transaction is subject to customary industry due diligence, standard requisite approvals, and the entering into of definitive agreements.

The transaction has been unanimously approved by Board of Directors of Terra Energy. The transaction is expected to close by December 15, 2012. The proceeds from the sale would be used to pay off the debt with senior lenders and other creditors.

Macquarie Tristone, GMP Securities LP and Scotia Waterous Inc. acted as financial advisors for Terra Energy.