Transeuro Energy Corp.

Transeuro Energy Corp.

December 19, 2008 02:30 ET

Transeuro Energy Corp.: Beaver River Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 19, 2008) - Transeuro Energy Corp. ("Transeuro", or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) reported today that the A-5 shale gas well has begun a long-term production test at the Beaver River field in British Columbia.

The tie-in of this well was completed in late November following receipt of regulatory approval. The long-term production test has commenced with the well flowing at a constrained rate of 5.0 mmcf/d (approximately 833 boe/d) with a flowing tubing pressure of 25 mpa kpa (3,700 psi). Overall field production throughout 2008 to date has averaged 2.63 MMcf/d.

Over the short term the high flowing pressure at A5 will reduce the production from the other 2 shales gas wells in the field (A2 & A7) as these older wells flow at much lower pressures. The performance of A5 over the next few months will indicate what changes need to be made to the gathering system to maximize production from all 3 current wells to maintain or increase field production further.

A-5 is currently producing from a carbonate-rich sequence in the shale zones at Beaver River. Transeuro believes this sequence could provide a pathway for gas from the deeper organic-rich shale interval. Based on final results, Transeuro will evaluate a number of additional re-completion candidates from the available existing wellbores to further appraise this new deeper shale play. Transeuro and its partner hold a joint interest in over 23,000 acres prospective for this play.

David Worrall, Transeuro President & CEO, commented, "With 3 shale wells now producing into pipeline and a step change in field production rate we are becoming ever more confident that this is a substantial resource play. The production test of A5 will tell us a lot about the likely recovery from the lower shales and will guide the selection of additional intervals and wells to work over. The potential for short term, relatively low cost gas production is important for Transeuro to boost revenue and support the international activities of the company."

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 and Ukraine.

On behalf of the Board of Directors

Harold Hemmerich, Chairman

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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