Transeuro Energy Corp.
TSX VENTURE : TSU

Transeuro Energy Corp.

April 16, 2007 00:15 ET

Transeuro and Questerre Amend Farm-In, Questerre Participates in Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 16, 2007) - Transeuro Energy Corp ("Transeuro" or the "Company") (TSX VENTURE:TSU) is pleased to announce amendments to the farm-in and operating agreement with Questerre Energy Corporation ("Questerre") (TSX:QEC)(OSE:QEC).

The farm-in and operating agreement for the Beaver River area has been amended as follows:

Transeuro will no longer be committed to drilling a Nahanni well at its sole cost and risk to complete its farm-in work program. Instead, the Company will earn a 50% interest in the entire Beaver River Field including all infrastructure with a payment of $10 million to Questerre. As a joint venture partner, the Company will also hold a 50% interest in exploration licenses covering over 23,000 acres in the Beaver River area recently acquired by Questerre.

Through the terms of the original farm-in, Transeuro earned an interest in 10,800 acres in the Beaver River area with partial rights to the shallow Mattson and deeper Nahanni formations. The new acreage will give Transeuro access to exploration targets in both the Mattson and Nahanni formations at locations near its existing acreage. In addition, the licenses include the rights to the prospective organic-rich Devonian shales as well as the fractured carbonates in the Mississippian Prophet formation. The Prophet formation is known to contain high-pressure natural gas responsible for a blowout while drilling the A-1 well in the early 1960's.

The partners have committed to commence drilling a joint Nahanni well by summer 2007. The Nahanni well will be managed by the same joint venture operating committee structure that drilled the B-3 well. The well will target a potential new fault bounded compartment within the established Nahanni reservoir.

Transeuro announced that in connection with its recent private placement, Questerre has subscribed for three million units at $0.61 per unit for gross subscription proceeds of $1.83 million.

Hal Hemmerich, President & CEO commented, "I am pleased that Transeuro has fully earned into the Beaver River Field and Facilities. Beaver River is an important asset for the Company. As well as earning our working interest we now have shared rights to an additional 23,000 acres of prospective land providing further potential. I am also pleased that our partner Questerre, has chosen to participate in the private placement demonstrating their confidence in Transeuro as a value investment."

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.

Questerre Energy Corporation is a Calgary based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.

Harold Hemmerich, President and CEO, Transeuro Energy Corp.

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.

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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