Transeuro Energy Corp.
TSX VENTURE : TSU

Transeuro Energy Corp.

January 17, 2007 10:41 ET

Transeuro Energy Corp.: Beaver River Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 17, 2007) - Transeuro Energy Corp. ("Transeuro" or the "Company") (TSX VENTURE:TSU) is pleased to announce the completion of drilling operations on well A-7 (A-93-K/94-N-16).

The primary target was successfully drilled and cased with drilling taking longer than expected due to technical challenges. Good gas shows were observed throughout the section from 1240m to the final casing point at 1781m.

Wireline logs confirm the presence of natural fractures, and these correspond with influxes of hydrocarbon gas observed during the drilling operation.

Drilling continued to a depth of 1930m where a deeper Mattson sand was encountered. This sand is equivalent to the interval currently producing in the nearby A-2 well at a rate of over 4 mmcf/d. Due to technical reasons, casing was not run over this interval, however, it is planned to test this sand in a future well.

Hydraulic fracturing and welltesting equipment will be mobilised over the coming weeks in order to evaluate the productivity of the Mattson and associated reserves.

David Worrall, Chief Operating Officer commented:

"Although some difficulties were encountered I am pleased that the drilling operations have been completed and the primary target successfully logged and cased. Encouraging gas shows were observed throughout the Mattson shale, and influxes of gas into the well while drilling confirm the presence of gas and the productivity of natural fractures in numerous parts of the section."

Transeuro Energy Corp. is involved in the acquisition of petroleum and natural gas rights, the exploration for, and development and production of crude oil, condensate and natural gas. The Company's properties are located in Canada, Armenia, Papua New Guinea and Ukraine.

Harold Hemmerich, President and CEO

This press release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from the targeted results. The Company relies upon litigation protection for forward-looking statements.

The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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