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NEWS RELEASE
April 09, 2008
Ukraine Well Nears Total Depth with Gas and Oil Shows
Vancouver, Canada: - Transeuro Energy Corp. ("Transeuro", or the
"Company") announces an update on its drilling operations in Ukraine
on the Karlavskoye 101 well and provides details on the related
financial conditions of the Joint Venture Agreement recently entered
into with RAG Rohöl-Aufsuchungs Aktiengesellschaft ("RAG")
(www.rohoel.at).
On well Karlavskoye 101, casing has been set above the main reservoir
target at 2,923m. Drilling has continued and has currently reached the
middle of the target reservoirs at 3,311m, with repeated gas kicks and
oil shows seen in the upper reservoirs. Intermediate logs were run at
3,174m over the top two target reservoirs and indicated a presence of
hydrocarbons. The Company now anticipates drilling down through the
deeper four targets to a depth of 3,550m and expects to reach total
depth during the second quarter.
Under the terms of the Joint Venture Agreement, RAG will pay a 75%
share of all past drilling cost of the Karlavskoye 101 well, up to a
maximum of $US11 million. For drilling costs in excess of US$11
million RAG shall only pay its 50% share. With these payments for
Karlavskoye 101, plus contributions for inventory and past seismic RAG
will pay approximately US$9.5 million on closing. Then following
success at Karlavskoye 101, the parties envisage drilling a second
appraisal well, Karlavskoye 102.
'Karlavskoye' is a large gas condensate field located in the western
area of Crimea, discovered in 1961. It contains eighteen wells drilled
from the 1960's to 1990's that have tested gas to surface from most of
the wells. As a result of the 2D seismic acquired in 2007, the
'discovered resources' attributed to the Karlavskoye field by Fekete
Associates Inc. under the Canadian 51-101 reporting standards has
increased to a mean estimate of 474 billion cubic feet of gas. Under
the terms of the Joint Activity Agreement with the local government
partner 'Crymgeologiya', Transeuro has 72% of the profits derived from
the development of the Karlavskoye field. Upon closing of the JVA,
Transeuro will hold 36% and RAG 36% of the profits.
Discovered resources are defined in the Canadian Oil and Gas
Evaluation 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. There is no certainty that it will
be commercially viable to produce any portion of the resources."
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, Ukraine, Armenia and in Papua New
Guinea through majority ownership in Eaglewood Energy Inc.
On behalf of the Board of Directors
"Harold Hemmerich" President and CEO
For further information contact:
David Parry - Vancouver, Canada
+1 (604) 681 3939 Phone
http://www.transeuroenergy.com
Karen O. Jenssen - Oslo, Norway
+ 47 917 29 787
[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.
April 09, 2008
Ukraine Well Nears Total Depth with Gas and Oil Shows
Vancouver, Canada: - Transeuro Energy Corp. ("Transeuro", or the
"Company") announces an update on its drilling operations in Ukraine
on the Karlavskoye 101 well and provides details on the related
financial conditions of the Joint Venture Agreement recently entered
into with RAG Rohöl-Aufsuchungs Aktiengesellschaft ("RAG")
(www.rohoel.at).
On well Karlavskoye 101, casing has been set above the main reservoir
target at 2,923m. Drilling has continued and has currently reached the
middle of the target reservoirs at 3,311m, with repeated gas kicks and
oil shows seen in the upper reservoirs. Intermediate logs were run at
3,174m over the top two target reservoirs and indicated a presence of
hydrocarbons. The Company now anticipates drilling down through the
deeper four targets to a depth of 3,550m and expects to reach total
depth during the second quarter.
Under the terms of the Joint Venture Agreement, RAG will pay a 75%
share of all past drilling cost of the Karlavskoye 101 well, up to a
maximum of $US11 million. For drilling costs in excess of US$11
million RAG shall only pay its 50% share. With these payments for
Karlavskoye 101, plus contributions for inventory and past seismic RAG
will pay approximately US$9.5 million on closing. Then following
success at Karlavskoye 101, the parties envisage drilling a second
appraisal well, Karlavskoye 102.
'Karlavskoye' is a large gas condensate field located in the western
area of Crimea, discovered in 1961. It contains eighteen wells drilled
from the 1960's to 1990's that have tested gas to surface from most of
the wells. As a result of the 2D seismic acquired in 2007, the
'discovered resources' attributed to the Karlavskoye field by Fekete
Associates Inc. under the Canadian 51-101 reporting standards has
increased to a mean estimate of 474 billion cubic feet of gas. Under
the terms of the Joint Activity Agreement with the local government
partner 'Crymgeologiya', Transeuro has 72% of the profits derived from
the development of the Karlavskoye field. Upon closing of the JVA,
Transeuro will hold 36% and RAG 36% of the profits.
Discovered resources are defined in the Canadian Oil and Gas
Evaluation 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. There is no certainty that it will
be commercially viable to produce any portion of the resources."
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, Ukraine, Armenia and in Papua New
Guinea through majority ownership in Eaglewood Energy Inc.
On behalf of the Board of Directors
"Harold Hemmerich" President and CEO
For further information contact:
David Parry - Vancouver, Canada
+1 (604) 681 3939 Phone
http://www.transeuroenergy.com
Karen O. Jenssen - Oslo, Norway
+ 47 917 29 787
[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.