Article content

CALGARY — Canadian junior oil and gas producer Terra Energy Corp on Monday shut down production, ceased operations and announced the resignation of directors and officers, after its lender, Canadian Western Bank, demanded full repayment of its debt.

Terra, which was producing around 3,600 barrels of oil equivalent from its operations in western Alberta and north-eastern British Columbia, said that at current low oil prices the cost of operating was more than its revenue.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Terra Energy Corp shuts down operations after Canadian Western Bank demands full repayment of debt Back to video

The company is the latest Canadian producer to fall victim to the prolonged slump in global crude prices, which have plunged by nearly two-thirds since June 2014.

Canadian Western Bank served notice on Friday demanding repayment in full of the $15.9 million owed by the company by March 28.

“The company’s lender has declined to provide further financial support to Terra and there is no other means of financing available to the company at this time,” Terra said in a statement on its website.