Transeuro Energy Corp.

Transeuro Energy Corp.

August 24, 2007 00:15 ET

Transeuro Energy Corp.: Nahanni Well Spuds at Beaver River Field-Clarification of Resource Disclosure

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 24, 2007) - Transeuro Energy Corp. ("Transeuro" or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) and Questerre Energy Corporation ("Questerre") (TSX:QEC)(OSLO:QEC) are pleased to announce the spud of the A-8 Nahanni well at the Beaver River Field.

The well will be drilled by the Precision Drilling #228 rig to a measured depth of 4,113m and a vertical depth of 3,880m. The primary target is a structurally high, undrilled Nahanni fault block identified on the reprocessed 3-D seismic survey. The well will also test three other prospective horizons including the Mattson, Mississippian carbonate and Devonian shales. Drilling is expected to take approximately 120 days with completion and testing scheduled for the first quarter of 2008.

Harold Hemmerich, President and Chief Executive Officer of Transeuro, commented, "We are pleased to entering this phase of our operations with the Nahanni well. We look forward to the completion of drilling operations later this year and the testing in early 2008."

The Nahanni is a highly productive formation at the Field and in the surrounding area. The original A-2 and A-5 wells are approximately 0.8 km away from the A-8 well. The A-2 well has cumulative production of 39 Bcf with a peak rate of 54.5 mmcf/d and the A-5 well has cumulative production of 50.1 Bcf with a peak rate of 57.7 mmcf/d.

Questerre's independent reservoir engineers have attributed gross possible reserves of 120 Bcf to the Nahanni and a remaining contingent resource of 540 Bcf. Recovery would be contingent upon proving the theory of compartmentalization and achieving a 50% recovery of the discovered resource.

Contingent resources are defined in the COGE Handbook, "Contingent resources are those quantities of oil and gas estimated on a given date to be potentially recoverable from known accumulations but are not currently economic."

The Company has at 50% gross and net interest in the A-8 well. The cost of the well is estimated to be $15.4 million. Transeuro has advanced funds for its interest.

Clarification of August 21, 2007 news release:

The Company reported the Beaver River Field contained significant gas in place estimated at 495 Bcf - 750 Bcf per section with a 1,000m net reservoir thickness. This should have been reported as a discovered resource. 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."

The Company reported gross estimated recoverable reserves of 4.4 Bcf. These reserves should be reported as proven and probable reserves.

Questerre Energy Corporation is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.

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, Transeuro Energy Corp.

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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