Transeuro Energy Corp.

Transeuro Energy Corp.

October 14, 2008 09:15 ET

Transeuro Energy Corp.: Liard Basin Shale Well Flows At 10 mmcf/d

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 14, 2008) - Transeuro Energy Corp. ("Transeuro", or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) and Questerre Energy Corporation ("Questerre") are pleased to announce today their first successful test on the deeper shales in the Liard Basin, in Northeast British Columbia.

The program consisted of a series of mini-fracs and high pressure acid stimulations in the existing d-a64-K (A5) well, with the objective of evaluating the rock properties of the Liard shales and to identify prospective intervals for a future fracture stimulation programme.

After a minor stimulation, the A5 well flowed sweet dry natural gas at a stabilized rate of 10 mmcf/d (approximately 1750 boepd) over a three day test with a wellhead pressure of 3,000 psi. The A-5 well is now being tied into the local gathering system and production is anticipated before the end of October pending regulatory approval.

The tested interval in A5 is a brittle layer, rich in dolomite at the top of a thick sequence of organic rich shale. The appraisal strategy for the shale is to target the more brittle rock intervals that have higher carbonate and silica content and are therefore expected to respond favourably to stimulation. The brittle rocks contain free gas and may serve as a pathway for the shale gas to enter the well. The long-term production test is intended to establish how much gas can be recovered from the surrounding shale through the stimulated layer.

David Worrall, Chief Operating Officer of Transeuro, commented, "Industry experience from other shale gas fields shows that targeting the more brittle layers of rock, as we have here, can be very effective in draining gas from the surrounding shales. These initial flowrates are very strong and indicate an AOF ("Absolute Open hole Flow rate") of approximately 40 mmcf/d (approximately 7000 boepd). We expect the rate to decline initially and are confident it will stabilize at commercial levels."

A-5 is the third well to be put on production from the shale/siltstone intervals at Beaver River. These intervals are collectively more than 2,000m thick and for classification purposes have been separated into three major intervals. Discovered resource is estimated at over 1 Tcf of gas in place per section based on independent analysis by Netherland, Sewell & Associates Inc. The two other producing wells, A7 and A2, produce from the upper and middle intervals respectively. Transeuro has a 50% interest in 35 sections with take away capacity in place.

This resource is not classified as reserves, contingent resources or unrecoverable resources at this time until determination of the appropriate completion and stimulation techniques and the determining of areas of maximum natural fracturing to maximize recovery of this discovered resource. There is no certainty that it will be economically viable or technically feasible to produce any portion of the reported discovered resource.

Discovered resources are defined in the COGE Handbook, "Discovered resources are those quantities of oil and gas estimated on a given date to be remaining in, plus those quantities already produced from, known accumulations. Discovered resources are divided into economic and uneconomic categories, with the estimated future recoverable portion classified as reserves and contingent resources, respectively."

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

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 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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