Transeuro Energy Corp.
TSX VENTURE : TSU

Transeuro Energy Corp.

August 04, 2005 20:13 ET

Transeuro Enters into Integrated Project Management Contract with High Arctic Energy Service L.L.C., Director Resigns

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 4, 2005) - Mr. Edward Farrauto, President and CEO of Transeuro Energy Corp. (the "Company", "Transeuro")(TSX VENTURE:TSU) is pleased to announce Transeuro has entered into a Integrated Project Management Contract ("IPMC") dated August 1, 2005 with High Arctic Energy Service LLC ("High Arctic") of Dubai, United Arab Emirates, a wholly owned subsidiary of High Arctic Energy Services Trust (TSX:HWO.UN).

High Arctic will manage operations in all areas of interest worldwide for Transeuro through an Integrated Project Management model. This will include asset management, management of operations, development of work programs, development of AFE's (Authority for expenditures), supplying services and equipment as they relate to the work programs and general responsibilities that encapsulate all asset development that relate to the Transeuro concessions worldwide. The term of the contract will be for thirty-six months.

High Arctic has been allocated a $1.0 million budget for the initial assessment of Transeuro's projects. This contract is in addition to the Beaver River Project (the "Project") where High Arctic has been allocated $1.5 million per well over four wells in the initial nine months of the Project with Mattson Holdings Ltd. ("Mattson"). Mattson has entered into a formal agreement with Ampac Petroleum Inc. ("Ampac") to earn Ampac's interest in the Beaver River Field further to the Beaver River Farmout and Operating Agreement between Questerre Beaver River Inc. and Ampac. Transeuro is currently in the process of acquiring of all of the issued and outstanding shares of Mattson (see news release dated June 8, 2005).

High Arctic is engaged in the global oilfield services business by providing underbalanced drilling and production services, equipment, design and development, and technical support and training to the Canadian and International oil and gas industry.

High Arctic's head office is located in Red Deer, Alberta with additional offices located in Brooks, Grande Prairie and Calgary. International offices are located in Dubai, United Arab Emirates and Bridgetown, Barbados.

High Arctic has been completing a preliminary review of the Company's projects during the past two months.

Armenia:

An initial study of Block 2 is being completed by High Arctic. The goal is to collect information for a dataroom to prepare for drilling exploration wells on two known plays, the Oktemberian gas and Shorakpour oil. The information package is largely complete and work is commencing on a new website that will host the electronic data. This work will continue over the next two months.

Papua New Guinea:

A technical fact finding visit has been completed by High Arctic resulting in a large amount of data being compiled. A preliminary work program is being drawn up with the focus on achieving the obligations requirements of the Company exploration licence.

Ukraine:

On behalf of Transeuro Energy Corp. High Arctic is currently performing a project planning review of the Gas Treatment Plant (GTP) and the connecting pipeline that ties in the Karlavske and Krasnopolyanske gas condensate fields to the existing gas mainline.

The High Arctic led review focuses on how the previous construction undertaking addressed quality, cost and time projections, and will provide analysis and recommendations to Transeuro within 60 days.

Other news:

Mr. Carlos Munoz has resigned as a director of the Company.


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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