TERRA ENERGY & RESOURCE TECHNOLOGIES, INC.

24 July 2007material agreement● NeutralMajor

On July 23, 2007 the Terra Insight subsidiary signed restated technology license and services agreements with the Institute of Geoinformational Analysis of the Earth, which the filing says is controlled by the company's majority shareholder. The license term is now 32 years from January 2005 (it was 30). The $600,000 annual license fee and $500,000 minimum services fee stay, with the 2007 fees deferred and later paid at no more than $300,000 a year once net revenues reach $2 million. The Institute also gets 20% of net revenues from farm-in/farmout projects, and the company has an option to buy the technology until June 30, 2012 for the lesser of $20 million or appraised value. The filing now shows the company incorporated in Delaware under the Terra Energy name.

Discuss in chat

22 Sept 2006capital raising announcement● NeutralMajor

On September 20, 2006 the company and Enficon cut the conversion price of the $4 million of 6% debentures from $1.00 to $0.50 and of the $1 million 7% debenture held through KIG from a $1.00-$2.00 range to $0.50. Enficon then converted all $5 million into 10 million shares, so the company has no convertible debentures outstanding. This is double the 5,000,000 shares the April plan implied at $1, so existing holders are diluted, but the debt is gone. The company also issued 250,000 shares and one-year warrants for 250,000 more at $0.50 to Global Scan Technologies for at-cost satellite data and interpretation services.

Discuss in chat

14 Aug 2006material agreement▼ BadMajor

On August 8, 2006 the company and its two subsidiaries signed a further change to the April 2006 Protocol Agreement with Kiev Investment Group (KIG) and Enficon. KIG had not yet paid the $900,000 escrow deposit for the Nevada 'Sage Well' test well, though KIG and Enficon paid a $350,000 cash call on July 19 and KIG paid a $680,000 cash call on August 10. Sage Well revenues are now split as: investments recouped first, then the company's 5% overriding royalty, then 75% to KIG and 25% to the company. KIG says it will not buy the company's non-debt securities (shares and similar) until the Sage Well starts producing oil, unless tests show much higher output or substantial reserves, and that it would ask for repayment of the convertible debentures and its project investment if the well is not commercial. This pushes back the equity purchases promised in April.

Discuss in chat

12 Apr 2006capital raising announcement▲ GoodMajor

On April 6, 2006 the company signed a Protocol Agreement with Kiev Investment Group (KIG), described as an affiliate of Enficon. KIG took over Enficon's obligation to buy the fourth and fifth $1 million convertible debentures, is to convert the $5 million of debentures into 5,000,000 shares at $1 by June 15, 2006, make capital contributions to Tierra Nevada, buy 5,000,000 shares at $1.05 by June 29, 2006, and get a stock option reaching 25% of shares, plus a board seat and financing rights on joint projects and the third and fourth Texas wells. On April 11, 2006 KIG bought the fourth $1 million 6% debenture due December 31, 2007, convertible at $1.00, with $500,000 for working capital and the rest going to Tierra Nevada for Nevada drilling. Some terms are still to be negotiated, and the conversions and options would add shares (dilution, an inference).

Discuss in chat

3 Feb 2006material agreement▲ GoodMajor

On January 26, 2006 a new subsidiary partnership, TexTerra Exploration Partners, agreed under a Farmout Agreement with Davidson Energy and Johnson Children's Trust No. 1 to earn a 70% working interest in the initial well on the 1,280-acre Bellows lease in La Salle County, Texas, by paying up to a budgeted $1,417,150 for the well. Under a partnership agreement with Enficon Establishment, Enficon is to fund $1,133,720 (80% of that budget) and share revenue with the company's subsidiary, after a 5% overriding royalty to Terra Insight. This is the company's first Texas drilling project and builds on the Nevada leases noted in the January 2006 filing.

Discuss in chat

4 Jan 2006capital raising announcement● NeutralMajor

On December 28, 2005 the company signed a non-final Statement of Understanding with Esterna Limited (Cyprus) for the sale of 49,500,000 more shares for $49,500,000 by March 31, 2006, after Esterna bought 500,000 shares at $1 on December 29, 2005. The company says it has no assurance Esterna has the funds or that a closing will happen, and the deal would give Esterna three board seats and equal voting rights with the Railyan Group. The same filing records accelerated vesting of about 1,163,333 officer options, a new 2005 Stock Incentive Plan of 5 million shares, new option grants, 2005 bonuses of $25,000 to $75,000 per executive and higher 2006 salaries and change-in-control protections for the three founders. Its subsidiary Tierra Nevada Exploration Partners also had bids accepted totalling $33,417 for two Nevada federal oil and gas leases of about 1,240.44 acres, the first oil and gas land interests described.

Discuss in chat

25 May 2005business combination● NeutralMajor

On May 19, 2005, CompuPrint handed all its old assets and liabilities to a new company, CompuPrint Ventures, and gave that to its sole officer David Allison in return for his 3,000,000 pre-split shares (cancelled) and release of his loans. It then acquired Terra Insight Corporation, a mapping and analytic services business for exploration, drilling and mining companies, by issuing 35,029,980 post-split shares to its three shareholders (Railyan, Rozenberg, Brecher), about 85% of the company. It also sold 2,411,138 post-split shares to two investors for $1,750,000 for working capital. This replaces the former printer-cartridge business, which had had no operations since its August 19, 2003 sale, and puts control with Terra Insight's owners, with Railyan holding 72.0%. Terra Insight must pay $600,000 a year for its technology license from the Institute of Geoinformational Analysis of the Earth.

Discuss in chat