Value : Delivery of Potential April 2007

Corporate ProfileTrading Symbols TTR (TSX - V)

Recent Share Price $1.40

Shares Outstanding (1)- Common (Basic) 76,000,000- Options and Warrants 9,552,000- Diluted Shares 85,552,000

Market Capitalization $106,400,000

Debt (2) $45,800,000

2006 Average Production (boe/d) 2,819

Reserves (3)- Total Proved (mboe) 9,902- Total Proved + Probable (mboe) 16,160

Net Asset Value (3)- Per share (Basic) $2.61

Notes

(2) As at December 31, 2006. Includes working capital deficit.

(1) As at March 31, 2007.

(3) As at Jan 1, 2007. GLJ Petroleum Consultants (10% P+P reserves) Seaton-Jordan (land).

Today

• Full cycle E&P company focused on North-East B.C. and Peace River Arch region of AB

• Operations initiated in 1996 as a private company

• Became a public company on January 30, 2004

2004 - Acquisition of Dominion Exploration assets– Completed in December 2004 ($31mm)

– Combined with existing lands, formed nucleus of Ft St. John Core Area

2005 –Year of Exploration Success– 100% exploration drilling success (11 gross / 9.8 net)

– Over 10 new pools discovered

2006 – Focus on Infrastructure and Delineation of New Pools– Completed pipeline segments in Septimus and Central Boudreau

– Advanced plans for South Peace gathering system including proposal for Peace River Crossing

– Delineation and development drilling largely restricted to Boudreau and Tower

Brief History

Cas H. Morel, President & CEO B.Sc., LLB, MBA 25+ years

Bud K. Love, VP Finance & CFO Startech 20+ years

Tim A. Beatty, VP Drilling and Comp PanCan 20+ years

T. A. (Tim) Blair, VP Land Acclaim Energy 20+ years

John Behr, VP Exploration Domin, Rio Alto 20+ years

Graham Collins, Manager Prod. Ops. Rigel 25+ years

Gord Oliver, Manager Exploitation Stellarton 20+ years

John Hrycyk, Manager Facilities Design Apache 13+ years

Rosa Lyngberg, Controller PWC 12+ years

John Pantazopoulos, Mgr Bus. Devel CIBC 6+ years

• Over 200 years of diversified experience• Expertise in all key disciplines

Management Team

Board of Directors

• Our Board is comprised mainly of independent members with extensive industry background and governance expertise

Ted S. Anderson – Founder, Pioneer Land & Environmental Services Ltd.

Ralph G. Evans – Petroleum engineer and former board member of the ERCB (AEUB)

Anthony R. Harvey – Businessman, extensive public company experience Fluor- Daniels

Colin P. MacDonald – Partner, Borden Ladner Gervais LLP

Cas H. Morel – President and CEO, Terra Energy Corp.

Robert D. Penner – Former senior tax partner, KPMG

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File: PresentationPP.MAP Datum: NAD 27 Projection: Stereographic Center: N56.14503 W120.73588 Created in AccuMap™, a product of IHS

Strategic Land Position

Production Growth

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2004

2005

2006

2007

2008

BOE/D

2004 Average

1,096 boe/d

2005 Average

2,069 boe/d

2006 Average

2,819 boe/d

2007 Average

3,600 boe/d

Base Production

Eight Mile

Septimus - Tower

East Boudreau

Peace River Crossing

Plan for 2007$34mm CAPEX focused on two

priorities:• Priority #1 - Infrastructure - $16mm• Priority #2 - Exploration - $12.5mm

Infrastructure – Tie-in “behind pipe” reserves

• Tower / Septimus – April 2007 (500 boe/d)

• East Boudreau – July 2007 (500 boe/d)

• South Eight Mile – Sept. 2007 (525 boe/d)

• Peace River Crossing – Q4 2007 – 1,000 boe/d

Exploration– High impact locations

• 10 exploration drilling locations identified in FSJ core area

• Participation in 480 km2 seismic shoot

CAPEX funded through cash flow credit facility

• $24mm cash flow ($7.50 gas / 3,600 boe/d prod.)

• $10mm existing credit facility

Land and Seismic, $2.0

Exploration Drilling, $12.5

Infrastructure, $16.0

Development, $3.5

South Peace Gathering System

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File: PresentationPP.MAP Datum: NAD 27 Projection: Stereographic Center: N56.05029 W120.84474 Created in AccuMap™, a product of IHS

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File: PresentationPP.MAP Datum: NAD 27 Projection: Stereographic Center: N56.31188 W121.14587 Created in AccuMap™, a product of IHS• Significant natural gas discovery (test rate > 6.0 mmcf/d)

• Estimated onstream date of July 2007

• Estimated production addition of approximately 500 boe/d

South Eight Mile

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File: PresentationPP.MAP Datum: NAD 27 Projection: Stereographic Center: N55.86552 W120.42328 Created in AccuMap™, a product of IHS

• Third party to construct gas processing and gathering system

• Expected onstream date of September 2007

• Estimated production addition of 500 boe/d

Exploration 2007• Terra’s Ft St John core area is a lightly explored area

with room for growth

• There is over 25 producing zones from Devonian to Cretaceous

• Terra has over 50 exploration and development opportunities identified

• Terra will drill over 6 exploration wells in the Ft St John area this year, some with major potential:

– Eight Mile

– Taylor

– West Boudreau

– Deep Devonian

Exploration – Eight Mile• The Doig sand is now an established producing zone

Our 7-8 well discovered a new Doig trend at 3.5 mmcf/d IP

• Tie-in our 3-3 and 9-4 wells this summer

• Three additional wells along the main trend in 2007, two along new 7-8 trend

• We are participating in a large 3D shoot over our land

• New Doig prospects to be tested, as well as new plays :

– Charlie Lake

– Halfway

– Doig Phosphate

– Kiskatinaw

– Devonian

Exploration - Taylor• 7 sections of 100% Terra land

• 3 high impact gas zones

• 1 high impact oil zone

• The Baldonnel, Halfway and Belloy have each produced over 100 Bcf from nearby pools

• Step-out on a 2MMbbl Charlie Lake oil pool

Exploration – West Boudreau• 5 sections of 100% Terra land

• 2 high impact gas zones: Baldonnel and Halfway

• Other potential zones in Doig, Charlie Lake, and Bluesky

• Good geological indications in offsetting wells

• Tie-in to Terra’s Red Creek facility

Exploration – Deep Devonian• 10 sections of 100% Terra land

• High impact gas deep Wabamun test

• Hydrothermal dolomite on the Parkland analogies have produced over 250 Bcf

• Lead offset well showed dolomite, porosity and gas, but drilled over 1km away from best location

• Other potential zones in Montney, Belloy, Taylor Flats and Kiskatinaw

• Modern 3D coverage showing an incredible fault with over 1000m of throw

Historical Review

2004 2005 2006Forecast

2007

Annual Production (boe/d) 1,096 2,069 2,819 3,600

Net Wells Drilled 6.4 16.1 13.8 10.0

Capital Expenditures (000's) $44,110 $48,007 $48,689 $34,000

Revenue (000's) $16,470 $40,256 $47,880 $56,600

Cashflow (000's) $4,886 $14,397 $18,415 $24,000

Net Income (000's) $1,302 $1,178 $888 $1,500

Proved Reserves (mboe) 6,335 9,183 9,902

P+P Reserves (mboe) 8,402 14,232 16,160

Undeveloped Land (net acres) 76,317 145,079 187,878

NAV Per Share (basic) $1.86 $3.10 $2.61

Peer Group Analysis

CompanyRecent

Share Price Market Cap Net Debt

Total Enterprise

Value Production

Gas Production (%)

of BOE/DYear-End 2005 Reserves (P+P)

Total Enterprise Value per

Producing BOE

Total Enterprise Value over

Reserve Value

($MM) ($MM) ($MM) BOE / D ($MM)Celtic Exploration Ltd. $12.33 $396.2 $85.3 $481.4 6,175 51% $389.0 77,960$ 124%Crew Energy Inc. $8.32 $299.8 $38.0 $337.8 5,768 83% $314.6 58,561$ 107%Birchcliff Energy Ltd. $3.75 $218.2 $115.1 $333.3 5,571 81% $324.1 59,819$ 103%ProEx $12.99 $472.6 $41.5 $514.1 5,204 91% $214.3 98,785$ 240%Storm Exploration $7.00 $300.4 $55.4 $355.8 4,933 82% $187.1 72,121$ 190%Gentry Resources $3.73 $144.4 $48.6 $193.0 3,936 61% $235.4 49,023$ 82%Endev Energy Inc. $1.08 $96.0 $48.9 $144.9 3,746 79% $178.7 38,694$ 81%Innova Exploration Ltd. $5.18 $229.6 $25.3 $254.9 3,341 39% $178.9 76,285$ 142%GeoCan Energy $1.18 $66.2 $46.3 $112.5 3,338 43% $135.0 33,710$ 83%Zapata Energy Corporation $4.70 $82.0 $40.2 $122.2 3,065 48% $160.0 39,878$ 76%Accrete Energy Inc. $4.98 $75.9 $47.4 $123.3 2,602 58% $145.2 47,391$ 85%ExAlta Energy $1.70 $57.1 $37.8 $94.8 2,264 65% $114.6 41,881$ 83%Arsenal Energy Inc. $0.70 $46.0 $25.7 $71.7 1,775 20% $97.0 40,384$ 74%Stylus Energy Inc. $1.95 $51.1 $25.7 $76.8 1,523 81% $74.5 50,459$ 103%Cinch Energy Corp. $1.00 $47.8 $17.3 $65.1 1,135 81% $79.7 57,326$ 82%Wrangler West Energy Corp. $9.00 $57.2 $9.3 $66.5 1,082 63% $74.7 61,467$ 89%Diaz Resources Ltd. $0.66 $40.8 $10.4 $51.2 1,059 89% $128.4 48,354$ 40%

Terra Energy Corp. $1.40 $106.4 $45.9 $152.3 2,931 78% $210.4 51,962$ 72%Peer Group Average 3,325 66% $178.3 56,006$ 105%

Peer Group Average - Natural Gas Producers 2,880 74% $189.3 58,502$ 107%Peer Group Average - Liquids Producers 3,461 38% $142.7 47,564$ 94%

Notes:

(1) Debt + working capital as at September 30, 2006. Terra Energy as at December 31, 2006.

(2) Q3 - 2006 average production.

(3) Terra Energy Reserve Information Updated to Dec 31, 2006.

Financial Summary Operational Summary Market Valuation Summary

Why Invest in Terra Energy• Production growth / tie-ins field by field

– 2,000 boe/d of behind pipe production to be brought onstream

• Significant upside with return to exploration in 2007– Over 50 exploration / development drilling prospects identified

• Strategic land position with high working interest– 260 sections of land in core area of Fort St. John with W.I. of 86%

• Ownership of infrastructure creates competitive advantage in the long run

– Major infrastructure projects to be completed in 2007 provide framework for significant future growth

• Strong Management– Significant insider ownership (>30%)

– Entire asset base was built by this team

Certain statements contained in this presentation contain forward-looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar statements are intended to identify forward-looking statements. 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. Forward-looking statements include, but are not limited to, references to oil and natural gas production levels; capital expenditure programs; the quantity of oil and natural gas reserves; projections of commodity prices and costs; supply and demand for oil and natural gas; expectations regarding Terra Energy Corp.’s (the “Corporation”) ability to raise capital and to continually add reserves through acquisition, exploration and development; and treatment under governmental regulatory regimes and tax laws. The Corporation’s actual results could differ materially form those anticipated in these forward-looking statements as a result of risk factors. Such risk factors include, but are not limited to: volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; geological, technical, drilling and processing problems; fluctuations in foreign exchange or interest rates and stock market volatility; and; other factors, many of which are beyond the control of the Corporation. Readers are cautioned that the foregoing list of important factors affecting forward-looking statements is not exhaustive. Furthermore, the forward-looking statements are made as of the date of this release, and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this release are expressly qualified by this cautionary statement.

Advisory

Suite 970 – 333 7th Ave SWCalgary, AB T2P 2Z1Tel: (403) 699-7777Fax: (403) 264-7189www.terraenergy.ca