Exterra Completes $1.1 Million Private Financing

Exterra Energy Inc. (OTCBB: EENR) is pleased to announce that the Company has successfully completed a private financing of $1.1 million at $0.75 per shares; these shares will be restricted under Rule 144. These funds are being used to expand and advance Exterra’s projects in the Barnett Shale, reactivate oil wells on our University Land leases in Pecos County, Texas, and general Corporate purposes.

“This initial Private Placement is the first step in a comprehensive financing strategy that will enable the Company to put wells that are already drilled into production and to finalize the drilling program during this phase. This comprehensive strategy will include the reworking of existing wells, the frac stimulation of newly drilled wellbores, the development of undrilled acreage and the acquisition of additional working interest through our partners that will ultimately increase revenues and expand reserves,” stated CEO, Ray Ledesma.

About Exterra Energy Inc.

Exterra Energy Inc. is an emerging oil and gas exploration and production company based in Houston, Texas. The Company is primarily active in the Barnett Shale in Texas with working interests and undrilled acreage, as well as an interest in an 80 mile pipeline. For more information visit our website at www.exterraenergyinc.com.

The Company and its representatives may from time to time make written or oral forward-looking statements, including statements contained in the Company’s filings with the SEC and in its reports to shareholders. One can identify these forward-looking statements by use of words such as “strategy”, “expects”, “plans”, “anticipates”, “believes”, “will”, “continues”, “estimates”, “intends”, “projects”, “goals”, “targets” and other words of similar meaning. One can also identify them by the fact that they do not relate strictly to historical or current facts. These statements are based on our assumptions and estimates and are subject to risks and uncertainties. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, the Company is hereby identifying important factors that could cause actual results and outcomes to differ materially from those contained in any forward-looking statement made by or on behalf of the Company.

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SOURCE: Exterra Energy Inc.