VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2008) - Transeuro Energy Corp. ("Transeuro", or the "Company") (TSX VENTURE:
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News; OSLO:
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News) and Questerre Energy Corporation ("Questerre") announced today that joint operations are under way to test the deeper shale's in the Liard basin, northeast British Columbia, Canada. These shale's are Mississippian in age and are located approximately 100 km to the east of the Horn River shale play.
There are two existing producing tight gas/shale wells (A2 and A7) which Transeuro and Questerre both have 50% ownership and that Questerre has operated for over two years with relatively low decline rates. Compression was recently added to A2 with very promising initial results. Production from the A2 increased to over 4.0mmcf per day which is near its original peak production rate of 4.5mmcf per day. The continued good production performance of these shallower wells together with recent work by Questerre and Transeuro indicate that there is also strong potential for the deeper Devonian shale's. Gas in place numbers for this area for the Mississippian siltstone/shale sequence are confirmed at over 1 tcf per section (discovered resource) based on independent work by Nederland, Sewel & Associates Inc. Transeuro has a 50% interest in 35 sections with take away capacity in place.
The current operation is a re-entry of the A5 well. Three intervals will be perforated and minor stimulations will be conducted to evaluate reservoir and rock mechanical properties prior to an inflow test. The gross thickness of these prospective deeper shale's that are confirmed with good gas shows are in excess of 500m and these tests will assist in identifying the net productive reservoir intervals. If the results of the inflow tests are promising, a full stimulation will be carried out in a future operation to test for commercial flow rates.
Michael Binnion, President of Questerre commented "We have great control of land and infrastructure in this area. Expertise gained from our Quebec shale play has allowed us to re-evaluate our past results. We believe we have been able to correlate the results to particular shale qualities which greatly encourage us that a predictive model can be created. The very high gas in place numbers and promising production results from our two wells in the Liard shale's make this test very interesting."
Hal Hemmerich, President of Transeuro commented "We are excited about the prospects of the Liard basin shale and we see the similarities to the Horn River shale. The license has six existing well bores, the surface infrastructure and the export line that all add significant commercial advantage. We also see the value in the continuation of the development of the upper shale's which have produced strongly over the past two years and believe this work program will highlight the shale commerciality in the Liard Basin."
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."
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, Ukraine and, through majority ownership in Eaglewood Energy Inc, in Papua New Guinea.
On behalf of the Board of Directors
Harold Hemmerich, President and CEO
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 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.
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