Hendon, which holds a 44% ownership stake in Terra, will partner with Terra in fulfilling its funding commitments, estimated at $90m, for the development of a 85,000-acre oil and gas concession in Kalmykia, Russia.
The company has agreed to this partnership in consideration for a warrant at EUR0.30 to buy ten million shares of Terra common stock.
Terra engaged Baker Hughes earlier this year to assist with a field development program.
Previously, the company received an evaluation of its contingent reserves from Chapman Petroleum Engineering, which indicated a fair market value for the concession of $633m.
