Transeuro Energy Corp.
TSX VENTURE : TSU

Transeuro Energy Corp.

October 26, 2006 01:00 ET

Transeuro Energy Corp.: Beaver River Well Enters Target Zone

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 26, 2006) - Transeuro Energy Corp. ("Transeuro" or the "Company") (TSX VENTURE:TSU) is pleased to announce that the well, A-93-K/94-N-16 (A-7) has reached top of the Mattson/Besa River horizon and drilling will continue through the main sandy shale targets over the next few weeks.

Drilling operations have now continued into the top of the ten potential targets in the main interval. The bottom target is currently producing 3.5 million standard cubic feet of gas per day ("MMcf/d") in the adjacent A-2 well (4.4 MMcf/d with compression), with an Absolute Open Flow ("AOF") of 6.0 MMcf/d. If the reservoir targets are found to be hydrocarbon bearing in the A-7 well, the Company plans to perforate a number of the most attractive targets and test the overall flow before moving to the next well in the programme of five shallow wells. Hydraulic fracturing equipment will then be mobilised in January once the ice bridges are in place to stimulate multiple intervals in both wells in order to significantly increase production from both wells.

Intermediate casing has been cemented at 1,153 metres after drilling the upper Mattson sequence of sands, chirt, pyrite and shale. Gas shows were seen in each of these shallow shale intervals, supporting the presence of gas in the shales throughout the field and the prospectivity of the main sandy/shale target. Progress throughout this intermediate section was slower than planned due to low rate of penetration through the hard and abrasive formations and to a number of technical problems with the drilling equipment.

David Worrall, Chief Operating Officer, commented, "The Company recognised from the old Amoco data and recent offset wells that drilling the top section would be challenging. Improvements have been made in the selection of drilling bits and drilling parameters, leading to a gradual increase in the rate of penetration back to our original estimates. Drilling practises will continue to be optimised with each well to reduce drilling time and cost. The presence of gas in the shallower shales agrees with data from the offset wells and indicates the potential to encounter a full column of gas across the whole prognosed 800 metres of sandy shale. With good cement isolation it is planned to fracture multiple intervals and produce gas from the whole reservoir interval."

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

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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