Transeuro Energy Corp.

Transeuro Energy Corp.

January 31, 2011 11:35 ET

Transeuro Energy Corp.: Ukraine Drills Into High Pressure Gas

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 31, 2011) - Transeuro Energy Corp. (TSX VENTURE:TSU)(OSLO:TSU) ("Transeuro" or the "Company") issues a weekly update on its Ukraine operations, on the exercise of warrants and the acquisition of Beaver River.

In Ukraine, drilling has reached a depth of 3,332 metres in the C13 reservoir when the first of the anticipated pressure step increase was encountered and the well began to flow. The well has been temporarily shut in to increase the mud weight to control the gas flow, before drilling operations resume. Routine analysis of the gas composition while drilling continues to show the presence of C1 (methane), C2 (Ethane) and C3 (Propane), and also the C4 (Butane) and C5+ fractions that support the presence of liquid condensate in the gas. Data from nearby wells previously drilled into these formations suggest a medium condensate yield in the range of 40-60 barrels per million cubic feet of gas at these depths.

Over the next week the Company expects to encounter the top C14 interval around 3,380 metres and drill to the 'Total Depth' (TD) of around 3,520 metres. Further pressure step increases are anticipated based on the data from nearby wells.

As at December 31, 2010, the Company had 21,426,815 warrants outstanding at an exercise price of CDN$0.15, of which 7,889,250 expire on February 11th 2011 and the remainder expire on September 3rd 2011. A number of the warrants have already been exercised and the Company expects to receive further notices over the next week.

Regarding the Letter of Intent with Questerre Energy Corp. announced on 9th September 2010, the Company advises that the parties are still in discussion regarding the proposed acquisition.

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
    +1 604 728 0040
    Transeuro Energy Corp.
    David Parry
    +1 604 681 3939
    Transeuro Energy Corp.
    Karen Jenssen
    +47 91 729787