Transeuro Energy Corp.
TSX VENTURE : TSU
OSLO STOCK EXCHANGE : TSU

Transeuro Energy Corp.

February 08, 2011 10:10 ET

Transeuro Energy Corp.: Ubuntu-1 Gas Condensate Discovery in PNG

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 8, 2011) - Transeuro Energy Corp. (TSX VENTURE:TSU)(OSLO:TSU) ("Transeuro" or the "Company") announces the news released by Eaglewood Energy Inc ("Eaglewood") regarding the Ubuntu-1 well in PPL-259 in Papua New Guinea. Transeuro has a back-in option to acquire 10% of all four Petroleum Prospecting Licenses held by Eaglewood in PNG after three wells have been drilled on the licenses by paying 10% of the exploration costs. The Ubuntu-1 well is the second of the three wells. The following is an extract from the Eaglewood February 7, 2011 news release:

"GAS CONDENSATE DISCOVERY IN PPL-259"

As at 00:00 hrs (GMT +10 hrs) preparations are underway to suspend Ubuntu-1 as a condensate rich gas discovery. Wire-line log and pressures measurement data suggest the well is capable of flowing gas at commercial flow rates.

Significant information from Ubuntu-1 is outlined below:

  • The well has penetrated at least 10 metres of net gas bearing Elevala sandstone over the gross interval of 3,305 – 3,330 metres

  • Wire-line pressure testing of six valid data points in the Elevala sandstone show a condensate rich gas gradient, indicating that the reservoir contains moveable gas and liquids. The gradient is similar to high yielding condensate gas wells in nearby offset wells Elevala and Ketu, suggesting that the gas could have similar properties.

  • The gas-water contact has not been penetrated, indicating the potential for additional gas below the Elevala Sandstone intersection depth in Ubuntu-1.

  • Estimations of reservoir permeability (indications of flow rates) based on log derived porosity and six pressure data points suggest that the Elevala sandstone is of good quality and will flow gas and condensate.

  • As the Operator has currently mapped, the well is located below the trap crest of the Ubuntu structure, which is approximately 1km to the West.

At this time, wire-line pressure testing and sampling are continuing in order to establish the full extent of the hydrocarbon column and to recover hydrocarbon samples from the reservoir for further testing and analysis. Further appraisal will be required to fully delineate the structure.

Commenting on the discovery, CEO David Worrall said; "The region around the Ubuntu-1 well has now delivered 4 discoveries out of 5 wells and we are excited at the prospect of exercising our back in rights after the third well is drilled to earn into 10% of this prolific region, as well as 10% of the other three licenses. We are eagerly anticipating the remaining results from this well and the next".

Transeuro 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. In addition, the Company holds a back-in option to Eaglewood Energy Inc.'s exploration licenses in Papua New Guinea.

On behalf of the Board of Directors

Aage Thoen, Chairman

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the Oslo Bors accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Transeuro Energy Corp.
    Chris McGillivray
    IR
    +1 604 728 0040
    or
    Transeuro Energy Corp.
    David Parry
    SVP
    +1 604 681 3939
    or
    Transeuro Energy Corp.
    Karen Jenssen
    IR
    +47 91 729787
    www.transeuroenergy.com