Transeuro Energy Corp.: Ubuntu Contingent ResourceTranseuro Energy Corp.: Ubuntu Contingent Resources
VANCOUVER, BRITISH COLUMBIA, May 06, 2011 -- Transeuro Energy Corp. ("Transeuro" or the "Company") (TSX VENTURE: TSU)(OSLO: TSU) announces the news released by Eaglewood Energy Inc. ("Eaglewood") regarding the Ubuntu discovery 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 and exercisable within 60 days of the completion of the third well. The Ubuntu-1 well is the second of the three wells. The following is an extract from the Eaglewood April 28th, 2011 news release:
"Contingent Resources on Ubunti-1"
The Gaffney Cline & Associates Statement of Resources "discloses a Mean Estimate of natural gas initially in place of 85.6 BCF, and a mean estimate of natural gas liquids initially in place of 4.7 MMbbl. Using a 6:1 conversion ratio to convert natural gas liquids to natural gas equivalent, the estimated mean natural gas equivalent initially in place is 113.8 BCFE.
The GCA Report also discloses, as part of the total resource estimate, 1C, 2C and 3C contingent resources of 18.9, 35.7 and 111.5 BCF of natural gas, respectively and 1C, 2C and 3C contingent resources of 0.69, 1.47 and 4.64 MMbbl of natural gas liquids, respectively.
There are a number of significant factors relevant to the estimates provided above, including, but not limited to:
1. Requirement for additional 2D seismic acquisition to better define the
structural framework of the Ubuntu discovery.
2. Definition of a Field Development Plan (FDP) - current Recovery Factors
are notional and based on a gas blowdown development scenario.
3. Review of natural gas and natural gas liquids recovery factors once an
FDP is decided.
There are also a number of contingencies which preclude the estimated resources from being classified as reserves. Such contingencies include, but are not limited to, the development plan envisaged by the Corporation and additional seismic acquisition and appraisal drilling."
"PVT Analysis on Ubunti-1"
The analysis, conducted by ODIN Reservoir Consultants Pty Ltd based in Perth, Australia indicates that in addition to natural gas and natural gas liquids, Ubuntu may also contain volumes of oil or a combination of oil and gas. The oil prospectivity is based on the PVT analysis of the Ubuntu-1 downhole fluid samples, which indicate a saturated reservoir fluid and suggests the possibility of the existence of a gas-oil contact somewhere in this reservoir. The Ubuntu reservoir fluid appears to be similar to that discovered in Elevala-1, where the presence of a possible oil leg was inferred by the previous operator of the well.
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
When used herein, the term "boe" means barrels of oil equivalent on the basis of one boe being equal to one barrel of oil or NGLs or 6,000 cubic feet of natural gas (6 mcf: 1 bbl). Barrels of oil equivalent may be misleading, particularly if used in isolation. A conversion ratio of six mcf of natural gas to one boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. 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.
Contacts: Transeuro Energy Corp. Chris McGillivray IR +1 604 728 0040 Transeuro Energy Corp. David Parry SVP +1 604 681 3939 Transeuro Energy Corp. Karen Jenssen IR +47 91 729787 www.transeuroenergy.com
SOURCE: Transeuro Energy Corp.
https://www.transeuroenergy.com