Transeuro Energy Corp.

Transeuro Energy Corp.

April 24, 2008 01:11 ET

Transeuro Energy Corp.: Gas Produced to Surface in Karlavskoye 101 Well in Ukraine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 24, 2008) - Transeuro Energy Corp. (TSX VENTURE:TSU)(OSLO:TSU) ("Transeuro" or the "Company") provides an update of operations at the Karlavskoye 101 well.

While completing a downhole surge test of the upper sections of the reservoir, Transeuro has produced the first gas to surface from the Karlavskoye 101 well. The test is a requirement of the Ukraine government regulations and the result physically confirms the presence of gas in the well. Reservoir fluids were allowed to flow into the drillpipe for a short period so that a sample could be captured in a downhole chamber. The plans did not require the well to flow continuously to surface. Once the downhole sample was captured, the well was shut in and the remaining gas was removed from the drill-string and flared. Photos of the current operations in Ukraine are available at

Operations are now continuing to drill the remaining 240 m to the bottom of the target zones at 3,550 meters at the base of the C16 reservoir interval. The Company intends to log and run casing before commencing full testing operations. As reported earlier, repeated gas kicks and oil shows were seen in the upper reservoirs and it is anticipated the well will be completed in the second quarter.

The 'discovered resources' attributed to the Karlavskoye field by Fekete Associates Inc. under the Canadian 51-101 reserves reporting standards has increased to a mean estimate of 474 billion cubic feet of gas (85.32 million barrel of oil equivalent). Under the terms of the Joint Activity Agreement with the local government partner 'Crymgeologiya', Transeuro has 72% of the profits derived from the development of the Karlavskoye field. Upon closing of the JVA with RAG ( of Austria, Transeuro will hold 36% and RAG 36% of the profits.

Discovered resources are defined in the Canadian Oil and Gas Evaluation Handbook, "Discovered resources are those quantities of oil and gas estimated on a given date to be remaining in, plus those quantities already produced from, known accumulations. Discovered resources are divided into economic and uneconomic categories, with the estimated future recoverable portion classified as reserves and contingent resources, respectively. There is no certainty that it will be commercially viable to produce any portion of the resources."

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, Ukraine and Armenia, and through majority ownership in Eaglewood Energy Inc, in Papua New Guinea.

On behalf of the Board of Directors

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 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.

Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.

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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