Transeuro Energy Corp.

Transeuro Energy Corp.

November 08, 2005 09:00 ET

Transeuro Energy Completes Acquisiton of Mattson Holdings Ltd.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2005) - Transeuro Energy Corp. (the "Company" or "TSU") (TSX VENTURE:TSU). Mr. Edward Farrauto, President and CEO of Transeuro Energy Corp. is very pleased to announce that the Company has completed the acquisition of all of the issued and outstanding shares of Mattson Holdings Ltd. ("Mattson") from Mattson's shareholders (the "Shareholders").

As consideration for the Mattson Shares, Transeuro issued to the Shareholders 53,184,928 common shares (the "Transaction Shares") in the capital of Transeuro at a deemed price of $0.57 per Transaction Share. A total of 46,167,384 of the Transaction Shares will be subject to the escrow restrictions pursuant to terms of TSX Venture Exchange (the "Exchange") policy 5.4 and an escrow agreement to be entered into by Transeuro, the applicable Shareholders and Transeuro's transfer agent in the form prescribed by the Exchange. The escrowed shares will be released over six years with releases every six months in accordance with the policies of the Exchange. The non escrow shares will be subject to a hold period until March 8, 2006. Transeuro received approval of the transaction by obtaining consent from a majority of its shareholders.

Effective immediately Mr. Harold (Hal) Hemmerich will be President and CEO of Transeuro and Mr. Edward Farrauto will be CFO. The Board of Directors will be comprised of Harold Hemmerich, Edward Farrauto, David Parry, Anastase Maragos and David Cohen.

Mr. Hemmerich has extensive background and experience in the resource industries of petroleum, natural gas and mining, and in the public markets as both a senior officer and director. He was formerly the Director, Business Development of High Arctic Energy Services LLC, a wholly-owned subsidiary of High Arctic Energy Services Inc., an Alberta based drilling services company with domestic and international operations.

Mattson, has entered into a formal agreement with Ampac Petroleum Inc. ("Ampac") to earn Ampac's interest in the Beaver River Field further to the Beaver River Farmout and Operating Agreement between Questerre Beaver River Inc. and Ampac dated May 2005. Ampac is controlled by Mr. Jed Wood. Mattson has agreed with Ampac to provide exploration funding of up to $10 million. It is currently implementing an initial $6 million wellbore reworking program to be carried out by High Arctic Energy Services.

The Beaver River Field is a natural gas field located 150 km northwest of Fort Nelson, British Columbia and is adjacent to the Fort Liard area of the southern Northwest Territories where large gas discoveries by Chevron Canada and Encana Corporation have confirmed the region's natural gas potential. The Beaver River Field is tied into the Duke Energy Gas Transmission Pipeline and has been historically estimated to contain 1.5 Tcf to 3.0 Tcf of original gas in place (OGIP) with a recovery factor of 10% to 20%. Based on re-processed 3D Seismic and other data, a new field interpretation has now recognized that there are two horizons containing gas: the shallow Mattson sands and the deeper Nahanni formation. The Mattson sands contains 6 to 10 sandstone zones, each of which have the potential to host gas reserves.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Transeuro Energy is pursuing oil and gas exploration opportunities in the Papuan Fold Belt of Papau New Guinea, under-explored frontier basins in Armenia and gas production development on the Crimean Peninsula, Ukraine. Transeuro has staked a claim to three significant emerging oil and gas regions of the world. Transeuro's participation in the Beaver River Field will add a strong domestic gas component to Transeuro's portfolio.

Transeuro Energy Corp. has 110,253,360 million shares issued and outstanding and working capital of approximately $33 million, with shareholders in Canada, the USA and Europe.


Edward Farrauto, President and CEO

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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