AQUISITION OF BEAVER RIVER SIGNEDCOULD BE RELATED
MOST OF THEIR DEBT WILL BE REPAID AFTER THIS
75% OF IT!
Transeuro Energy Corp.: Acquisition of Beaver River Signed
On Wednesday April 27, 2011, 6:00 am EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 27, 2011) - Transeuro Energy Corp. (NYSE:TSU)(NYSE:TSU)("Transeuro" or the "Company") is pleased to announce the Company hasexecuted a Share Purchase Agreement (SPA) with Questerre EnergyCorporation ("Questerre") pursuant to the Letter of Intent as previouslyannounced on Sept 9th 2010 as follows:
1. Transeuro will acquire the remaining 50% interest in the Beaver River
field in British Columbia through the acquisition of all the outstanding
shares of Questerre Beaver River Inc, a wholly owned subsidiary of
Questerre. At closing Transeuro will own 100% of the Beaver River field
including the 2 producing wells, the production equipment, gathering
system and all associated infrastructure.
2. Pursuant to the acquisition, the $5.15 million debt payable by Transeuro
to Questerre Beaver River Inc. will be eliminated on consolidation. Upon
closing, there will be no amounts due to Questerre by Transeuro.
3. Transeuro will issue to Questerre forty (40) million shares (8.7%) in
Transeuro.
Closing is subject to receipt of all requisite approvals and conditions precedent.
The Chairman, Aage Thoen commented;
"Theacquisition furthers our strategy to pursue large assets and has thepotential to add short term production from the existing wells andinfrastructure in place. Canada represents a secure, low risk venturefor Transeuro in a proven hydrocarbon basin. With the large discountbetween gas and oil pricing we believe gas assets are currentlyundervalued and that North American gas prices and asset valuations willrecover over the next one to two years."
"Further through thistransaction, the removal of the operating debts of CDN$5.15 millioneliminates 75% of the Companies current liabilities as of December 31st2010 and creates a strong, stable balance sheet to support futureactivities and expansion."
The Beaver River field:
-- consists of 35 sections in the Liard Basin in North East British
Columbia, adjacent to the Horn River Basin that has attracted
considerably interest from major oil companies for the discovered shale
gas assets. Interest in the Liard Basin has increased with recent land
sales close to the Beaver River by some of the companies active in the
Horn River area.
-- has ongoing production of around 700 thousand cubic feet per day (mcf/d)
from 2 shallow wells, flowing into the Spectra Energy's pipeline that
transits through the field.
-- The field was discovered in 1961 by Amoco who targeted the deeper
conventional carbonate reservoir, the 'Nahanni', from 3500 metres, where
a 700 metre gas column was discovered. Amoco estimated recoverable
reserves in the Nahanni of 1.47 trillion cubic feet (Tcf), but abandoned
the Nahanni in the 1970's after only producing 179 billion cubic feet
(Bcf), 11% of expected production.
-- Amoco also produced 6.6 Bcf from within the overlying 2500 metres of
gross shale intervals using conventional operating methods from the
vertical wells.
-- has a number of old production wells drilled into the Nahanni that
present opportunities to increase production and to appraise the shale
potential in a cost effective manner and without the need to drill new
wells from surface.
-- Despite the current production the field has no reserves assigned at
this time as at current gas prices, operating costs exceed revenues.
However in 2007 Netherland Sewell Associates (NSA,
https://www.netherlandsewell.com ) conducted a preliminary review of the
field data to assess the shale gas and conventional gas potential of the
upper intervals. The report indicated potential for Original Gas In
Place (OGIP) figures of 425-750 Bcf per section for 1000 metre
thickness. It is this potential across the 35 license sections that will
be investigated with additional operations and production.
ThePresident & CEO, David Worrall commented; "The historicalproduction at Beaver River demonstrates commercial production can beachieved at various depths from 1000 to 4000 metres and the NSA analysisindicates the potential for very significant gas in place. While wehave some production and data, more appraisal work is required to unlockthis potential and to turn the indicative numbers into resources andthen to reserves. With the pipeline on the lease we aim to achievecommercial production as we work through the appraisal programme. TheBritish Columbia Oil and Gas Commission has recently issued strongstatements supporting the gas industry in British Columbia, inparticular for shale gas and the operating technique of large hydraulicfracs, so we do not expect the same environmental hurdles that exist inother areas of North America."
Transeuro is involved in theacquisition of petroleum and natural gas rights, the exploration for,and development and production of crude oil, condensate and naturalgas. The Company's properties are located in Canada, Armenia, andUkraine. In addition, the Company holds a back-in option to EaglewoodEnergy Inc.'s exploration licenses in Papua New Guinea.
On behalf of the Board of Directors
Aage Thoen, Chairman
Whenused herein, the term "boe" means barrels of oil equivalent on thebasis of one boe being equal to one barrel of oil or NGLs or 6,000 cubicfeet of natural gas (6 mcf: 1 bbl). Barrels of oil equivalent may bemisleading, particularly if used in isolation. A conversion ratio of sixmcf of natural gas to one boe is based on an energy equivalencyconversion method primarily applicable at the burner tip and does notrepresent a value equivalency at the wellhead. The statements containedin this release that are not historical facts are forward-lookingstatements, which involve risks and uncertainties that could causeactual results to differ materially from the targeted results. TheCompany relies upon litigation protection for forward lookingstatements.
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) nor the Oslo Bors accepts responsibility for theadequacy or accuracy of this release.
Contacts
Chris McGillivray
Transeuro Energy Corp.
IR
+1 604 728 0040
David Parry
Transeuro Energy Corp.
SVP
+1 604 681 3939
Karen Jenssen
Transeuro Energy Corp.
IR
+47 91729787
www.transeuroenergy.com