Transeuro Energy Corp.
TSX VENTURE : TSU

Transeuro Energy Corp.

August 09, 2005 10:45 ET

Transeuro Updates Plans for Beaver River Project and new Management Appointments

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 9, 2005) - Mr. Edward Farrauto, President and CEO of Transeuro Energy Corp. (the "Company", "Transeuro") (TSX VENTURE:TSU) reports on new management appointments and the planned work program for the Beaver River Project with Mattson Holdings Ltd. ("Mattson").

Transeuro can earn up to a 50% interest in the Beaver River Project through its acquisition of all of the outstanding shares of Mattson (see News Release dated June 8, 2005). The Beaver River Field is a natural gas field located 150 km northwest of Fort Nelson, British Columbia and is adjacent to the Fort Liard area of the southern Northwest Territories where large gas discoveries by Chevron Canada and Encana Corporation have confirmed the region's natural gas potential. The Beaver River Field is tied into the Duke Energy Gas Transmission Pipleline and has been historically estimated to contain 1.5 Tcf to 3.0 Tcf of original gas in place (OGIP) with a recovery factor of 10% to 20%. Based on re-processed 3D seismic and other data, a new field interpretation has now recognized that there are two horizons containing gas: the shallow Mattson sands and the deeper Nahanni formation. The Mattson formation contains 6 to 10 sandstone zones, each of which has the potential to host natural gas reserves.

Transeuro and Mattson have budgeted an initial $6 million for reworking four wells on the Beaver River Project targeting the Mattson multiple sand horizons for near term production potential. From a previous wellbore, an initial test of up to 12 mmcf per day of gas came from one of the six prospective gas bearing sands within the Mattson sand horizon. A workover rig will be mobilized to the project in mid August, 2005 with the initial three wellbores recompleted by November, 2005. Management believes that utilizing the latest perforating and fracturing technologies combined with High Arctic's specialized underbalanced completion practices; these technologies will deliver higher productivity than those drilled and produced in the 1960's. The best producer from the Mattson sand returned 6.5 mmcf per day from a well completed in 1977. Based on present completion techniques, management is targeting collective Mattson sand production for each well to be in the 10 mmcf to 20 mmcf of gas per day. Gas flow rates for each wellbore will be measured to determine the commercial production viability of the field. Management is targeting 40 mmcf to 80 mmcf per day production from all four wells.

Once flow rates and commercial viability of the Mattson sands are verified, Transeuro will consider drilling up to an additional 20 wellbores for the Mattson sands and also assess the potential of drill testing priority gas targets in the deeper Nahanni formation. With 3D seismic and modern underbalanced drilling techniques, management aims to increase field recovery factor and thus is targeting the possible recoverable gas reserves for the Beaver River Field of between 110 Bcf and 600 Bcf.

With the execution of the High Arctic Energy Service LLC ("High Arctic") integrated project management contract (see News Release dated August 1, 2005) Transuero has appointed new management, advisors and consultants to advance the Company's worldwide oil and gas assets. The new management, advisors and consultants include:



Transeuro New Management, Advisors and Consultants

Jed Wood President & CEO High Artic Energy Services Trust
Matt Swartout North American Director of Integrated Project
Management, High Arctic Vice President Drilling
Ken Hemmerich International Projects Manager, High Arctic Vice
President International.
David Worall High Arctic International Director of Integrated
Project Management
Jonathan Kuhn Beaver River Project Manager, High Arctic North
American Director of Integrated Project Management
Michael Smith Asset Manager for Armenia
Neil Stewart Asset Manager for Crimea.
Robert Healy Country Liaison for Ukraine
Phil Magor Asset Manager for Papua New Guinea
Fabio Banducci Financial and Corporate Communications Consultant


Edward Farrauto, President of Transeuro stated: "We are very pleased to welcome High Arctic, our country asset managers, project managers and consultants to the Transeuro team. By partnering with High Arctic, Transeuro is able to access an experienced oil and gas management team with a proven track record and specifically, their industry leading abilities in drilling and reworking underbalanced wells."

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.

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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