Transeuro Energy Corp.
TSX VENTURE : TSU

Transeuro Energy Corp.

March 05, 2007 00:15 ET

Transeuro and Questerre Announce Preliminary Results From A-7

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 5, 2007) - Transeuro Energy Corp. ("Transeuro" or the "Company") (TSX VENTURE:TSU) and Questerre Energy Corporation ("Questerre") (TSX:QEC)(OSLO:QEC) are pleased to announce the initial test results from the A-7 well at the Beaver River Field.

Two separate 100-ton slick water fracture stimulations were completed on two prospective intervals on the A-7 well. The lower of these intervals was successfully stimulated and the interval flowed combustible gas on initial flow back. The interval was subsequently isolated and the upper interval stimulated. On a 21 hour test, production from this upper interval cleaned up to 1.9 mmcf/d on a 45.5 mm (1 3/4 inch) choke with a final flowing tubing pressure of 4,000 kPa (580 psi).

Subsequently, operations commenced to put both intervals on test concurrently. During these operations is was determined that there is a casing obstruction in the lower interval. The obstruction created a partial restriction slowing recovery of the stimulation fluid from this lower interval. Nevertheless, both zones are currently being flowed together to clean up the well and determine the combined flow rate.

Based on initial test results, Transeuro and Questerre are developing plans to tie-in the well to the existing gathering system. Subject to weather conditions and the final test results, it is anticipated that the A-7 well would be placed on-stream in the second quarter.

The A-7 well is located 1.3 kilometres north of the A-2 well that initially tested at 1.64 mmcf/d and is currently producing at approximately 4 mmcf/d. Mr. Hal Hemmerich, President and CEO commented, "The performance of the upper interval has begun in a similar manner to the A-2 well that has been on production for the past year, where the flow rate tested at 1.64 mmcf/d and increased over five months to 4.3 mmcf/d."

The partners also updated the status of the B-3 well. The well is targeting the Mattson/Besa River horizon and is located approximately 6 kilometers south of the A-7 well. Drilling is proceeding according to schedule at a depth of just over 1,400 m. Transeuro and Questerre each hold a 50% interest in the B-3 well. A joint venture operating committee is managing the operations with Questerre appointed as the named operator.

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.

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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