Transeuro Energy Corp.

Transeuro Energy Corp.

January 21, 2008 00:15 ET

Transeuro Energy Corp.: Drilling Update in Beaver River

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 21, 2008) - Transeuro Energy Corp. ("Transeuro", or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) and Questerre Energy Corporation (TSX:QEC)(OSLO:QEC) reported today on the preliminary test results from the A-8 well at the Beaver River Field.

Three prospective intervals in the Nahanni formation identified on drilling logs were perforated earlier this month. Pre-stimulation there was a continuous dry gas flow to surface. The well was subsequently stimulated late Thursday evening with a 51 m3 acid squeeze.

Late Friday, during an 8-hour initial cleanup flow, the well flowed back the spent acid and cleaned up to rates in excess of 5 mmcf/d (833 boe/d) on a final choke size of 38/64" and a flowing tubing pressure in excess of 8,000 kPa. During the flow period, 80 m3 of fluid was recovered which is in excess of the stimulation fluid used. This excess is likely formation water. Separate pressure recorders were run with the bottom set of perforations isolated from the upper two sets of perforations. The well is currently shut-in to gather an initial reservoir pressure and pressure gradient between the perforation intervals. A production test with a full flow and buildup is planned to begin as soon as the drilling rig can be moved off the location. Subject to final results, Transeuro and Questerre have commenced plans to tie-in the well to the local gathering system.

Hal Hemmerich, President and Chief Executive Officer of Transeuro, commented, "When we receive further data from the pressure recorders and a full production test, we will determine the impact of the acid squeeze on the flow rates of gas and water. The final production test will assist in determining what work can be done to improve on the stimulation procedures. The gathering and analysis of this data is estimated to take a few weeks."

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, Ukraine and in Papua New Guinea through majority ownership in Eaglewood Energy Inc.

On behalf of the Board of Directors

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. 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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