Terra Nova Terminates Farm-In Agreement and Will Advance PEL 112 and 444 on a Pro-Rata Basis

SINGAPORE / ACCESSWIRE / May 19, 2015 / Terra Nova Energy Ltd. ("Terra Nova") (TSX-V: TGC; OTCQX: TNVMF) announces that it has terminated its Farm-In Agreement (the "Agreement) with Holloman Energy Corporation ("Holloman") and plans to advance its working interests in Petroleum Exploration Licenses ("PEL") 112 and 444 on a pro-rata basis. Terra Nova reviewed the terms of the Agreement in light of the current oil environment and concluded there is potential to generate higher returns for its shareholders by funding a proportional share in exploration costs.

To date, Terra Nova has earned its initial 20.66% interest at a net cost of approximately C$6.2 million. The Agreement, which was negotiated in March of 2012 when oil was near $100 per barrel, was estimated to require exploration expenditures of C$12 to 15 million in order to earn up to an additional 29.16% working interest.

Terra Nova will propose to Holloman and Perseville Investing Inc. ("Perseville") a multi-well program for completion in 2015. This program may include two to four wells at estimated total cost of C$5 to 10 million, of which Terra Nova's proportional share is estimated to be C$1.5 to 2.0 million. Terra Nova has in excess of C$2.9 million in cash and is fully funded to contribute its share of exploration expenditures. In the event the other parties decline to fund exploration, Terra Nova will seek to fund up to two holes as previously announced. At present, the working interests in the PELs are divided between Holloman Energy (48.50%), Perseville (30.83%) and Terra Nova (20.66%).

Henry Aldorf, Chairman and CEO, stated, "We believe drilling several additional wells with significant funding contributions from our partners will increase the probability of discovering oil." Mr. Aldorf continued, "Given that Terra Nova has acquired its initial 20% interest at a net cost of C$6 million, we believe this route is most accretive for our shareholders."

The parties will be subject to the Joint Operating Agreement whereby ownership representing over 51% of the PELs will vote on an operator. The operator will have the right to propose an exploration budget after which point each party must provide capital to fund its working interest. Terra Nova anticipates working with Holloman and Perseville to finalize a drilling program that would be completed in 2015. Terra Nova recently received approval to extend the deadline for exploration expenditures on PEL 444 from June 1, 2015 to January 11, 2016. PEL 112 is currently held in good standing until January 10, 2019.

About Terra Nova Energy Ltd.

Terra Nova Energy Ltd. is an oil and gas company with a 20.66% working interest in two onshore petroleum exploration licenses ("PELs"), being PEL 112 and PEL 444, located on the western flank of the Cooper Eromanga Basin in the State of South Australia, Australia. Its common shares trade on the TSX Venture Exchange under the symbol "TGC" and its ordinary shares trade in the U.S. on the OTCQX marketplace under the symbol "TNVMF."

For more information please contact:

Terra Nova Energy Ltd.
Investor Relations
T: +1 604 200 1039
Email: info@terranovaenergyltd.com
Nico Civelli
VP Finance
T: +65 9395 8990
Email: nico@terranovaenergyltd.com

This news release contains forward-looking information relating to Terra Nova's intentions to conduct the drilling programs and other statements that are not historical facts. Such forward-looking information is subject to important risks and uncertainties that could cause actual results to differ materially from what is currently expected, for example: risks related to oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, competition from other producers, inability to retain drilling rigs and other services, reliance on key personnel, and insurance risks. Findings by other oil and gas issuers does not necessarily indicate that Terra Nova will be successful in making such findings in the Western Flank. In making such forward-looking statements, Terra Nova has relied upon certain assumptions relating to geological settings, commodity prices, the stability of markets and currencies and the availability of capital to Terra Nova in order to continue with the seismic and drilling programs. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While Terra Nova may elect to, Terra Nova is under no obligation and does not undertake to update this information at any particular time, except as required by applicable securities law.

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

SOURCE: Terra Nova Energy Ltd.