Transeuro Energy Corp.

Transeuro Energy Corp.

March 24, 2009 00:15 ET

Transeuro Energy Corp.: Beaver River Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 24, 2009) - Transeuro Energy Corp. ("Transeuro", or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) reported today that the A-5 Liard shale gas well at Beaver River has been flowing since Nov 30th at a facilities constrained rate of around 5mmcf/d (140,000 m3/day) with occasional interruptions due to operating issues. The well has not stabilized within the normal 90 day extended production test often used to assess shale gas wells and the strong initial production performance bodes well for a new potential shale play. Further testing is required over the next 3 to 6 months to determine the contribution of gas from the surrounding organic rich shales.

A-5 is currently producing from a carbonate-rich sequence in the deeper shale zones at Beaver River. Transeuro believes this sequence could provide a natural pathway to allow production of gas from the surrounding organic-rich shale interval.

David Worrall, Transeuro President & CEO, commented, "The well has now produced over 60% of the volume of gas indicated from the initial testing phase to exist in the thin carbonate sequence. As we continue to produce we hope to see clear evidence of the surrounding shales contributing gas into the carbonate sequence and for the well rates and pressures to stabilize. The evidence that targeting distinct layers in this way is a practical alternative in some cases to expensive hydraulic fracturing or the need to drill horizontal wells will greatly assist in developing the very thick shales found in this area. A decline in the initial rate is common in shale gas wells, but with the A5 well starting at a much higher initial rate than is typical for a shale gas well it will take longer than 90 days to see the stabilized rate."

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 and the shallower shale zones producing in the other 2 production wells during the summer operating period. Transeuro and its partner hold a joint interest in over 23,000 acres prospective for this play.

Transeuro has granted a total of 1,225,000 stock incentive stock options to an officer and employees of the Company. The exercise price of 725,000 of the stock options is $0.25 per share and the balance of 500,000 of the stock options are exercisable at $0.50 per share. All stock options have a term of five years. The grant of the stock options are subject to regulatory and exchange approval.

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

David Worrall, CEO and President

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 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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