Terra Energy and Transportadora de Gas del Sur to Streamline Pipeline Monitoring

NEW YORK, NY, 09/20/10 - Terra Energy & Resource Technologies, Inc. (OTCBB:TEGR), a natural resource exploration technology company, has entered into a Memorandum of Understanding (MOU) with Transportadora de Gas del Sur S.A. (TGS), a major Argentine gas transportation company controlling one of the longest gas pipelines in South America. Terra proposed an innovative satellite-based methodology to identify conditions which could lead to pipeline corrosion and other types of related costly breaks. The non-binding MOU is planned to lead to negotiation of a definitive contract with Terra, should TGS deem the predictive results provided by Terra objective and accurate. The companies have been in discussions regarding solutions for pipeline monitoring issues that remain an ongoing challenge in any hydrocarbon conveyance system.

"TGS controls approximately 6,000 kilometers of pipeline. The prospect of a service contract to monitor the whole pipeline is a significant opportunity for Terra," said Dmitry Vilbaum, CEO of Terra Energy & Resource Technologies. "While pipeline monitoring is not an area we have focused on, it clearly is a significant market and is another aspect of the industry to which Terra can apply its science and expertise. We are proud that our technologies have so many applications to help the oil and gas industry, and we look forward to advancing our technologies capabilities related to pipeline monitoring, which, along with break fix and general maintenance of long pipelines in hard-to-access areas are major hurdles to overcome in oil and gas source regions with challenging weather and terrain. We recently visited a conference on the subject of pipeline maintenance that was sponsored by Gazprom, the Russian oil and gas major, and it appears that while these weather and terrain pipeline problems are widely experienced, there is not a satisfactory generally accepted industry protocol for dealing with them. Such problems are opportunities in disguise and Terra is looking into the matter for TGS to examine whether there are any spectral criteria correlating aggressive environments and the locations of pipeline corrosion."

Dr. Alexandre Agaian, President of Terra Energy & Resource Technologies, stated that, "Satellite-based technologies are applicable to pipeline diagnostics issues potentially translating into major savings for gas transportation companies. Although this type of project is our first, we do not exclude the possibility that the research may be used to build universal spectral models for pipeline monitoring."

About Terra Energy & Resource Technologies, Inc.
Terra Energy & Resource Technologies, Inc., through its subsidiary Terra Insight Services, Inc., provides mapping and analysis services for exploration, drilling, and mining companies related to natural resources found beneath the surface of the Earth. The Company uses a suite of innovative and efficient technologies, which facilitate the prediction and location of commercially viable deposits of hydrocarbons, gold, diamonds, and other natural resources, and assesses them for any given geographic area -- on or offshore. For more information, visit http://www.terrainsight.com

Safe Harbor for Forward-looking Statements

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. There are many factors that could cause the Company's expectations and beliefs about its operations, services, plans, projects, and contracts, and its plans or proposals to acquire interests in, or participate in, exploration activities or properties, to fail to materialize, including, but not limited to, availability of capital, negotiation and execution of definitive agreements, satisfaction of contractual requirements, unfavorable geologic conditions, the amount of reserves projected or ultimately discovered, and general regional economic conditions.

Suzanne Holbrook