Transeuro Energy Corp.

Transeuro Energy Corp.

August 21, 2007 17:00 ET

Transeuro Energy Corp.: Beaver River Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 21, 2007) - Transeuro Energy Corp. ("Transeuro" or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) reported today on recent developments at the Beaver River Field in British Columbia (the "Field").

The first phase of an independent report on the Mattson horizon is ongoing and confirms the likelihood that the thick shale section at the Field contains significant gas in place, possibly 50% higher than previously stated. It is currently estimated at 495 Bcf-750 Bcf per section with a 1,000m net reservoir thickness. We are pleased to have the Mattson independently confirmed as a very significant natural gas resource.

The report also identifies a number of unique aspects to the Mattson play and recommends that initial development of the play should focus on areas where there are sand intervals and open fracture systems present. The A-2 well, which from a 50m thick interval has gross estimated recoverable reserves of 4.4 Bcf and an initial stabilized flow rate of 4.2 mmcf/d (700 boe/d), is an example that meets these criteria. The completion and stimulation designs are also expected to be critical to the development of this play.

Completion and stimulations operations were recently completed on the A-7 and B-3 wells. Two nitrogen-based fracture stimulations, three CO2-based fracture stimulations and one slick-water fracture stimulation were evaluated. The slick-water stimulation on the lower Mattson section in the A-7 well performed best with initial flow rates of over 1.8 mmcf/d (300 boe/d) and the two nitrogen-based stimulations performed worst with no commercial flows of gas. The initial flow rates on the three CO2-based stimulations ranged from 100 mcf/d (16.5 boe/d) to 1.8 mmcf/d (300 boe/d). Further work is required to determine to what extent the stimulation design verses the nature of the interval stimulated influences the ultimate flow rates.

Based on the preliminary results from the A-7 well, no further testing is required to confirm commerciality. Operations will commence to complete the pipeline tie-in and put this well on production and determine stabilized flow rates and long-term productivity by testing into the pipeline. While the A-7 well had significant drilling problems and only the upper portion of the Mattson was successfully cased, it appears that this well is drilled in to an area with open fracture systems and meets the criteria identified in the independent report.

Based on the preliminary results from the B-3 well it appears that this well has been drilled into a fault block that does not have open fracture systems. An extended production test will be carried out to establish what the long-term productivity of this well will be. This well bore was designed for a multi-lateral completion and can be re-entered and drilled to the neighboring fault block where there was a 12 mmcf/d (2,000 boe/d) drill stem test by Amoco in the 1960s. Transeuro and Questerre Energy Corporation plan to evaluate this opportunity for the winter drilling season.

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.

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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