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TRANSEURO ENERGY
500 ` 900 West Hastings Street
Vancouver, B.C. V6C 1E5
Transeuro Signs Joint Venture Agreement
April 2, 2008 TSX-V/ Oslo Axess: TSU
Vancouver, Canada: - Transeuro Energy Corp. (`Transeuro', or the
`Company') announces it has entered into a Joint Venture Agreement
(`JVA') with RAG Rohöl-Aufsuchungs Aktiengesellschaft (`RAG')
to develop Transeuro's existing Ukrainian assets and Joint Activity
Agreements with the local Ukrainian state company `Crimgeologiya'. The
new Joint Venture will also pursue additional business opportunities
in Crimea.
RAG (www.rohoel.at) is a non listed Austrian stock company owned by
major Austrian and German energy and utility companies, principally
EVN, a leading Austrian energy, water and infrastructure company
(Vienna exchange symbol EVN) and E.ON Ruhrgas AG, a major European
integrated gas company (Frankfurt exchange symbol EOA.DE). RAG,
established in 1935, is the oldest E&P company in Austria, and
operates 51 gas fields and 40 oil fields including substantial gas
storage facilities. Annual gas sales volumes are around 1.1 billion
m3, with over 3 billion m3 of operational and projected working gas
storage.
Transeuro and RAG will be 50:50 partners in the new joint venture. The
JVA outlines substantial tangible benefits to Transeuro including
direct payments to Transeuro for past drilling costs, seismic costs
and inventory. And under various firm and conditional funding
formulas, RAG will provide its 50% investment share and contribute up
to an additional 25% of the drilling of three wells and the 3D seismic
over two fields (making RAG total contribution up to 75% of well and
seismic costs). In addition RAG will contribute to an agreed fund for
the acquisition of new licenses in Crimea and for field
development. The potential contribution by RAG to the total capital
budget for 2008 and 2009 is up to US$70 million with Transeuro
responsible for its remaining share of well and seismic
costs. Following success of the Karlavksoye101 and Povotonoye 104
wells both RAG and Transeuro each envisage investing around US$ 280
million into these two Crimea fields.
Both Transeuro Energy and RAG believe there is a considerable business
opportunity in Ukraine from the Joint Activity Agreements held with
Crimgeologiya and that there is an opportunity for further growth
through the acquisition of additional discovered non producing
fields. The business environment in Ukraine and the domestic gas price
has strengthened considerably over the past two years and the
government has raised the emphasis on supporting domestic exploration
and production.
Under the terms of the JVA, Transeuro will reorganize all of its
existing Ukrainian assets such that they will all be held indirectly
by a wholly owned Dutch subsidiary of Transeuro. At the closing of the
transaction contemplated by the JVA, Transeuro will transfer 50% of
the shares of its Dutch subsidiary to RAG.
There are a number of conditions precedent to the closing of the
transaction contemplated by the JVA including, among other things, the
entering into by the parties of a Joint Management Agreement, the
approval of the Antimonopoly Committee of Ukraine and the completion
of the corporate restructuring of Transeuro and its Ukrainian
assets. The parties anticipate closing the transaction within 60 days.
Hal Hemmerich, President and Chief Executive Officer of Transeuro
commented, "We look forward to working with RAG to further the
development of our projects in Ukraine. RAG has considerable expertise
in exploration & production, gas marketing, distribution and storage
that will be of great benefit to the partnership. Together with RAG
being a financially strong company we can look at more projects'
Markus Mitteregger, Managing Director of RAG said, `The joint activity
with Transeuro in Ukraine is a further important step in our
international growth strategy. Ukraine is a country of prime
importance in the European energy context and we look forward to
develop resources for the Ukrainian market'.
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
For further information contact:
David Parry - Vancouver, Canada
Karen O. Jenssen ` Oslo, Norway
+1 (604) 681 3939 Phone + 47 917 29 787
http://www.transeuroenergy.com [email protected]
The TSX Venture Exchange has not reviewed, and does not accept
responsibility for the adequacy or accuracy of the content of this
news release. 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.
500 ` 900 West Hastings Street
Vancouver, B.C. V6C 1E5
Transeuro Signs Joint Venture Agreement
April 2, 2008 TSX-V/ Oslo Axess: TSU
Vancouver, Canada: - Transeuro Energy Corp. (`Transeuro', or the
`Company') announces it has entered into a Joint Venture Agreement
(`JVA') with RAG Rohöl-Aufsuchungs Aktiengesellschaft (`RAG')
to develop Transeuro's existing Ukrainian assets and Joint Activity
Agreements with the local Ukrainian state company `Crimgeologiya'. The
new Joint Venture will also pursue additional business opportunities
in Crimea.
RAG (www.rohoel.at) is a non listed Austrian stock company owned by
major Austrian and German energy and utility companies, principally
EVN, a leading Austrian energy, water and infrastructure company
(Vienna exchange symbol EVN) and E.ON Ruhrgas AG, a major European
integrated gas company (Frankfurt exchange symbol EOA.DE). RAG,
established in 1935, is the oldest E&P company in Austria, and
operates 51 gas fields and 40 oil fields including substantial gas
storage facilities. Annual gas sales volumes are around 1.1 billion
m3, with over 3 billion m3 of operational and projected working gas
storage.
Transeuro and RAG will be 50:50 partners in the new joint venture. The
JVA outlines substantial tangible benefits to Transeuro including
direct payments to Transeuro for past drilling costs, seismic costs
and inventory. And under various firm and conditional funding
formulas, RAG will provide its 50% investment share and contribute up
to an additional 25% of the drilling of three wells and the 3D seismic
over two fields (making RAG total contribution up to 75% of well and
seismic costs). In addition RAG will contribute to an agreed fund for
the acquisition of new licenses in Crimea and for field
development. The potential contribution by RAG to the total capital
budget for 2008 and 2009 is up to US$70 million with Transeuro
responsible for its remaining share of well and seismic
costs. Following success of the Karlavksoye101 and Povotonoye 104
wells both RAG and Transeuro each envisage investing around US$ 280
million into these two Crimea fields.
Both Transeuro Energy and RAG believe there is a considerable business
opportunity in Ukraine from the Joint Activity Agreements held with
Crimgeologiya and that there is an opportunity for further growth
through the acquisition of additional discovered non producing
fields. The business environment in Ukraine and the domestic gas price
has strengthened considerably over the past two years and the
government has raised the emphasis on supporting domestic exploration
and production.
Under the terms of the JVA, Transeuro will reorganize all of its
existing Ukrainian assets such that they will all be held indirectly
by a wholly owned Dutch subsidiary of Transeuro. At the closing of the
transaction contemplated by the JVA, Transeuro will transfer 50% of
the shares of its Dutch subsidiary to RAG.
There are a number of conditions precedent to the closing of the
transaction contemplated by the JVA including, among other things, the
entering into by the parties of a Joint Management Agreement, the
approval of the Antimonopoly Committee of Ukraine and the completion
of the corporate restructuring of Transeuro and its Ukrainian
assets. The parties anticipate closing the transaction within 60 days.
Hal Hemmerich, President and Chief Executive Officer of Transeuro
commented, "We look forward to working with RAG to further the
development of our projects in Ukraine. RAG has considerable expertise
in exploration & production, gas marketing, distribution and storage
that will be of great benefit to the partnership. Together with RAG
being a financially strong company we can look at more projects'
Markus Mitteregger, Managing Director of RAG said, `The joint activity
with Transeuro in Ukraine is a further important step in our
international growth strategy. Ukraine is a country of prime
importance in the European energy context and we look forward to
develop resources for the Ukrainian market'.
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
For further information contact:
David Parry - Vancouver, Canada
Karen O. Jenssen ` Oslo, Norway
+1 (604) 681 3939 Phone + 47 917 29 787
http://www.transeuroenergy.com [email protected]
The TSX Venture Exchange has not reviewed, and does not accept
responsibility for the adequacy or accuracy of the content of this
news release. 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.