EANS-News: Terrex Energy Inc. reports second quarter 2011 results

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Earnings

CALGARY, Canada (euro adhoc) - Terrex Energy Inc. ("Terrex" or the
"Company") (TSX-V: TER) announces its financial and operating results
for the three and six months ended June 30, 2011.

The Company has filed its unaudited interim financial statements and
related management's discussion and analysis ("MD&A") for the three
and six month periods ended June 30, 2011 on SEDAR at www.sedar.com
and the Company's website at www.terrexenergy.ca. Certain selected
financial and operational information for the period is set out below
and should be read in conjunction with the Company's interim
financial statements and related MD&A for the period ended June 30,
2011.

"We are pleased at the progress made during the second quarter of
2011", stated Ms. Kim Davies, President and CEO. "The potential from
enhanced oil recovery, or EOR, is considerable, the reserves are
known and often significant, there is no exploration risk, and the
technology we use is well established. We continue to execute our
business plan and our initial projects at Strathmore and Two Creek
are moving us forward in achieving our objective of building a unique
company focused on EOR", concluded Ms. Davies.

Q2 FOCUS ACTIVITIES

- Strathmore EOR is project proceeding on schedule, field rehabilitation
activities are ongoing, and construction of the EOR facility is nearing
completion with delivery expected in October.
- EOR planning commenced at Two Creek and an application for an EOR
program for the Jurassic A pool has been made to the Energy Resources
Conservation Board.
- Strengthened technical team with the addition of Dr. N. Mungan, a
recognized EOR expert.
- Identification and evaluation of additional EOR opportunities.

FIELD OPERATIONS Field activities during the second quarter continued
to focus on the development of the chemical
alkaline-surfactant-polymer ("ASP") flood for the Strathmore
property. The project is proceeding on schedule and the overall EOR
plan is being finalized. The Strathmore EOR facilities are being
built in Wyoming and are over 90% complete, with certain metering
equipment still to be delivered. Following final testing, the
facilities will be shipped to the Strathmore site with set-up
expected to commence in October 2011. Additionally, activities at
Strathmore continued to concentrate on reactivating well bores and
pipelines, injector well conversions, and facility modifications and
repairs in preparation for the EOR program. Restart of the water
flood and chemical injection is anticipated to begin near year end
2011.

At Two Creek, an application for an EOR program for the Jurassic A
pool has been submitted to the Energy Resources Conversation Board.
Specialized technical EOR analysis work is underway and cores have
been delivered for laboratory testing. This is the initial step in
developing an optimum EOR plan. Specifics relating to the EOR design
are expected to be completed by 2011 year end. In the interim, the
Company is proceeding with an optimization program at Two Creek,
which includes drilling one and possibly two horizontal wells prior
to implementing an EOR program.

OPERATIONAL AND FINANCIAL SUMMARY

Three Month Periods ended June 30 2011 2010
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Average production, boe/d 343 78
Capital expenditures, including
acquisitions $ 1,975,055 $ 142,923
Revenue, net of royalties $ 1,689,495 $ 366,169
Funds flow from operations(1) $ 8,836 $ (392,537)
Per share, basic and diluted $ 0.000 $ (0.013)
Operating (loss)(1) $ (286,170) $ (612,625)
Per share, basic and diluted $ (0.003) $ (0.020)
Net (loss) $ (344,546) $ (1,159,785)
Per share, basic and diluted $ (0.004) $ (0.039)
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(1) Funds flow from operations and operating loss are non-IFRS measures
and are addressed in the "Advisories" section.

Six and Five Month Periods ended June 30 2011 2010
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Average production, boe/d 348 75
Capital expenditures, including
acquisitions $ 17,019,347 $ 997,733
Revenue, net of royalties $ 3,340,109 $ 573,488
Funds flow from operations(1) $ (411,576) $ (501,845)
Per share, basic and diluted $ (0.005) $ (0.017)
Operating (loss)(1) $ (1,010,864) $ (928,800)
Per share, basic and diluted $ (0.012) $ (0.032)
Net (loss) $ (1,045,455) $ (1,492,048)
Per share, basic and diluted $ (0.013) $ (0.052)
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(1) Funds flow from operations and operating loss are non-IFRS measures
and are addressed in the "Advisories" section.

Comparative figures for 2010 are for the three and five month periods
ended June 30, 2010 and have been restated to reflect International
Financial Reporting Standards ("IFRS") adopted in 2011.

Production and revenue for the three and six month periods ended June
30, 2011 increased significantly over the comparable periods in 2010,
primarily as a result of the acquisition of the Two Creek property,
which was effective as of January 1, 2011. Production averaged 343
boe/d during the second quarter of 2011, an increase of 265 boe/d
over the second quarter of 2010. Production for the six month period
ended June 30, 2011 averaged 348 boe/d, an increase of 273 boe/d over
2010. The year over year increase in revenue also reflects an
increase in realized 2011 commodity prices over 2010 realized prices.
Realized 2011 commodity prices, on a boe basis, increased
approximately 25% over 2010.

As expected, the Company has continued to incur losses in advance of
the implementation of optimization and EOR projects. The net loss for
the second quarter of 2011 was $344,546 as compared to $700,910 for
the first quarter of 2011 and $1,159,785 for the second quarter of
2010. The continuing reduction in reported losses reflects increased
production, stronger commodity prices, and improving operating
efficiencies. These factors also had a direct impact on funds flow
from operations and, for the first time, the Company realized
positive funds flow from operating activities during the second
quarter of 2011.

As the Company's EOR and optimization projects progress this trend is
expected to continue, and production and revenue are anticipated to
increase significantly.

ABOUT TERREX Terrex Energy Inc. is a Calgary based junior oil company
that focuses on the application of proven Enhanced Oil Recovery (EOR)
methods to improve oil production from existing mature fields. Terrex
targets underexploited and undercapitalized light to medium oil
reservoirs in Western Canada. The Company's shares are listed on the
TSX Venture Exchange under the trading symbol "TER".

Neither the TSX Venture Exchange nor its Regulation Service Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

ADVISORIES

Barrels of Oil Equivalent Production volumes and reserve information
are commonly expressed on a barrel of oil equivalent ("Boe") basis
whereby natural gas volumes are converted at the ratio of six
thousand cubic feet of natural gas to one barrel of oil based on an
energy equivalency at the burner tip and does not represent a value
equivalency at the well head. Used in isolation, barrels of oil
equivalent may be misleading.

Non-IFRS Information Included in this news release are references to
terms commonly used in the oil and gas industry including funds flow
from operations and operating loss. Such terms do not have standard
meaning as prescribed under International Financial reporting
Standards ("IFRS") and therefore may not be comparable with the
determination of similar measures for other entities. As used in this
news release, funds flow from operations is calculated as cash flow
from operating activities less changes in non-cash working capital
and, operating loss is calculated as net loss before stock based
compensation and accretion of asset retirement obligations. Funds
flow from operations is used by management in assessing the Company's
ability to fund capital programs and operations and operating loss
provides a comparison of operating results between periods, excluding
non-cash items subject to significant volatility. The foregoing
non-IFRS measures should not be considered an alternative to, or more
meaningful than cash provided by operating activities and net loss
determined in accordance with IFRS.

Forward-Looking Statements Certain statements contained in this news
release constitute forward-looking statements and forward-looking
information (collectively referred to herein as "forward-looking
statements") within the meaning of applicable Canadian securities
laws. Such forward-looking statements relate to future events or
future performance and are based on Terrex's current internal
expectations, estimates, projections, assumptions and beliefs,
including, among other things, assumptions with respect to
production, future capital expenditures and cash flow. Readers are
cautioned that the assumptions used in the preparation of such
information may prove incorrect. All statements other than statements
of historical fact may be forward-looking statements. Such
forward-looking statements are often, but not always, identified by
the use of words such as "seek", "anticipate", "budget", "plan",
"continue", "estimate", "expect", "forecast", "may", "will",
"project", "predict", "potential", "targeting", "intend", "could",
"might", "should", "believe" and similar expressions. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially
from those anticipated in such forward-looking statements. Terrex
believes the expectations reflected in those forward-looking
statements are reasonable but no assurance can be given that these
expectations will prove to be correct and such forward-looking
statements included in, or incorporated by reference into, this news
release should not be unduly relied upon. These forward-looking
statements speak only as of the date of this news release.

In particular, this news release contains forward-looking statements
pertaining to the following:

- business strategies
- exploration and development plans
- implementation, anticipated benefits and timing of enhanced oil
recovery ("EOR") programs
- other expectations, beliefs, plans, goals, objectives, assumptions or
statements about future events or performance

Forward-looking statements are based on Terrex's current beliefs as
well as assumptions made by, and information currently available to,
Terrex concerning business prospects, strategies, regulatory
developments, the ability to obtain equipment in a timely manner to
carry out development activities, the ability to obtain financing on
acceptable terms, the benefits of IOR and EOR programs and the terms
of the Hydrocarbon Purchase Agreement. Although management considers
these assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect.

Undue reliance should not be placed on forward-looking statements,
which are inherently uncertain, are based on estimates and
assumptions, and are subject to known and unknown risks and
uncertainties (both general and specific) that contribute to the
possibility that the future events or circumstances contemplated by
the forward-looking statements will not occur. There can be no
assurance that the plans, intentions or expectations upon which
forward-looking statements are based will in fact be realized. Actual
results will differ, and the difference may be material and adverse
to Terrex and its shareholders. These factors include, but are not
limited to risks associated with oil and natural gas exploration,
financial risks, the history of losses, substantial capital
requirements, political and government risks, government regulation,
environmental, prices, dependence on key personnel, availability of
drilling equipment and access, risks may not be insurable, licenses,
resource estimates, variations in exchange rates. Further information
regarding these factors may be found under the heading "Risk Factors"
in the company's Annual Information Form. Readers are cautioned the
foregoing list of factors that may affect future results is not
exhaustive.

The forward-looking statements contained in this news release are
made as of the date hereof and Terrex does not undertake any
obligation to update publicly or to revise any of the included
forward-looking statements, except as required by applicable law. The
forward-looking statements contained herein are expressly qualified
by this cautionary statement.

(TER.)

Further inquiry note:
Kim Davies, President & CEO, or Norm Knecht, VP Finance and CFO, at (403)
264-4430, or visit the Company's website at www.terrexenergy.ca

end of announcement euro adhoc
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company: Terrex Energy Inc
950, 630 - 6 Avenue S.W.
CA-T2P 0S8 Canada
phone: +1-403-264-4430
WWW: http://www.terrexenergy.ca/
sector: Oil & Gas - Upstream activities
ISIN: CA8814551096
indexes:
stockmarkets: stock market: Frankfurt
language: English