EANS-News: Terrex Energy Inc. Reports Third 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 nine months ended September 30, 2011.

The Company has filed its unaudited interim financial statements and
related management's discussion and analysis ("MD&A") for the three
and nine month periods ended September 30, 2011 on SEDAR at
www.sedar.com and on 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
September 30, 2011.

OPERATIONS AND OUTLOOK

Terrex currently owns two oil properties with, on a combined basis,
over 40 million barrels of original oil in place ("OOIP"). Technical
analyses of these properties have identified their potential for
improved oil recovery ("IOR") and enhanced oil recovery ("EOR")
programs which could add considerable reserves and production.

The Strathmore property contained approximately 20 million barrels
OOIP with 4.8 million bbls recovered to date. When acquired by
Terrex in 2010, the pool was producing about 40 bbls/d of oil and 200
mcf/d of gas, for a total of 70 boe/d. Geological and geophysical
mapping, including 3D seismic, combined with reservoir simulations
indicate that this pool is a strong candidate for a chemically
enhanced water flood program. Analogous pools, where similar programs
have been implemented, have recovered an additional 7% to15% of
original oil in place. Similar results from an EOR program at
Strathmore could result in the recovery of 1.5 to 3 million barrels
of additional oil.

At Strathmore, Terrex has recently completed a number of field
operations in preparation for a planned EOR program. These activities
have doubled the production from the pool to approximately 140 boe/d.
The majority of future production gains, however, are expected to
come from the planned EOR program and during the third quarter,
activities continued to focus on the development of the chemical
alkaline-surfactant-polymer ("ASP") flood for the property. Final
fluid and core flood analyses and reservoir simulations are nearing
completion, and the overall EOR field plan has been finalized.
Construction of the Strathmore ASP facilities is complete with
delivery from Wyoming is waiting on completion of site preparations.
Once the facilities are on site, commissioning will commence and
chemical injection and restart of the water flood is expected to
begin in early 2012.

As planning of the EOR program has progressed, the Company has
identified operational efficiencies and the potential for an earlier
production response time. In order to capitalize on these
efficiencies, the Company plans to accelerate capital expenditures
relating to the overall project. The Company is currently
considering various financing options in order to fund this
accelerated capital program.

At Two Creek, Terrex has commenced the planning of a second IOR/EOR
project on the Company's Jurassic A and B pools. Approval of an
application for an EOR program on the A pool has been received from
the Energy Resources Conversation Board and the Company is working on
the design of an optimal EOR program. Specialized technical EOR
analysis work has commenced and laboratory analyses, reservoir
simulations and cost estimates are underway. The A Pool also appears
to have good IOR optimization potential and the Company plans to
drill two horizontal in-fill wells and re-align the water flood in
2012 prior to the implementation of an EOR program. Additionally, at
Two Creek, Terrex has commenced reservoir assessments of the B pool.

The Company has also identified and is actively pursuing other
properties for IOR and EOR potential consistent with the criteria
developed by the company.

The Company has elected not to provide market guidance at this time
for 2012.

OPERATIONAL AND FINANCIAL
SUMMARY

Three month periods ended September 30 2011 2010
----------------------------------------------------------------------------
Average production, boe/d 332.3 72.0
Capital expenditures, including
acquisitions $ 1,409,845 $ 541,320
Revenue, net of royalties $ 1,551,459 $ 297,045
Funds flow from operations (1) $( 159,271) $( 449,054)
Per share, basic and diluted $( 0.002) $( 0.006)
Operating (loss) (1) $( 477,481) $( 468,141)
Per share, basic and diluted $( 0.005) $( 0.006)
Net (loss) $( 779,526) $( 960,746)
Per share, basic and diluted $( 0.009) $( 0.012)

(1) Funds flow from operations and operating loss are non-IFRS measures
as outlined in this document

Nine and Eight month Periods ended
September 30 2011 2010
----------------------------------------------------------------------------
Average production, boe/d 342.6 73.7
Capital expenditures, including
acquisitions $ 18,429,192 $ 1,539,053
Revenue, net of royalties $ 4,891,569 $ 870,533
Funds flow from operations (1) $( 570,847) $( 950,899)
Per share, basic and diluted $( 0.007) $( 0.020)
Operating (loss) (1) $( 1,488,345) $(1,004,735)
Per share, basic and diluted $( 0.018) $( 0.021)
Net (loss) $( 1,824,981) $(2,452,794)
Per share, basic and diluted $( 0.022) $( 0.052)

(1) Funds flow from operations and operating loss are non-IFRS measures
as outlined in this document

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

Production and revenue for the three and nine month periods ended September 30,
2011 increased significantly over the comparable periods in 2010, primarily as a
result of the acquisition of the Two Creek property, as of January 1, 2011.
Production averaged 332 boe/d during the third quarter of 2011, an increase of
260 boe/d over the third quarter of 2010. Production for the nine month period
ended September 30, 2011 averaged 343 boe/d, an increase of 269 boe/d over 2010.
This increase in production together with increased commodity prices is
reflected in the year over year increase in revenue. Realized 2011 commodity
prices, on a boe basis, increased approximately 24% over 2010.

As expected, the Company has continued to incur losses in advance of the
implementation of optimization and EOR projects. Net losses for the three and
nine month periods ended September 30, 2011 were $779,526 and $1,824,981
respectively as compared to $960,746 and $2,452,794 for the comparable periods
in 2010. As the Company's EOR and optimization projects progress, 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.

Further inquiry note:
For additional information please contact Kim Davies, President & CEO, or Norman
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 Calgary
phone: +1-403-264-4430
WWW: http://www.terrexenergy.ca/
sector: Oil & Gas - Upstream activities
ISIN: CA8814551096
indexes:
stockmarkets: stock market: Frankfurt
language: English