Transeuro Energy Corp.
TSX VENTURE : TSU

Transeuro Energy Corp.

September 06, 2005 10:51 ET

Transeuro Acquires Prospecting License 259

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 6, 2005) - Mr. Edward Farrauto, President and CEO of Transeuro Energy Corp. (the "Company", "Transeuro") (TSX VENTURE:TSU) is pleased to announce that Transeuro has entered into an agreement to acquire Petroleum Prospecting License (PPL 259), covering an area of 1,601,242 acres (6,480 square kilometres), located in the foreland area of the Papuan Fold Belt of Papua New Guinea ("PNG"). The license was acquired from Rockwell Explorations S.A. As consideration for the license, Transeuro will issue to Rockwell 390,000 common shares of Transeuro. Transeuro's interest will be no lower than 77.5% under the current agreements and possibly as high as 100% if the government of Papua New Guinea elects not to exercise its option to purchase 22.5% equity in the project. The common shares will be subject to a hold period of at least four months.

Block 259 surrounds the undeveloped gas condensate fields of Stanley, Elevala (433 Bcf) and Ketu currently operated by Santos. In addition, just 50 kilometres to the north is the similar but more substantial undeveloped gas/condensate discovery of Pnyang (1.16 Tcf). The main producing area in PNG lies 75 kilometres to the east and includes the major Hides gas/condensate accumulation (5.4Tcf) and the adjacent fields of Angore (3.33 Tcf) and Juha (1.56 Tcf) which will come on production into the PNG Gas-to-Queensland pipeline project.

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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