http://www.newsweb.no/newsweb/search.do?messageId=280784
27th April 2011 TSX-V/Oslo Axess: TSU
Vancouver, Canada: - Transeuro Energy Corp.
("Transeuro" or the "Company") is pleased to announce
the Company has executed a Share Purchase Agreement
(SPA) with Questerre Energy Corporation ("Questerre")
pursuant to the Letter of Intent as previously
announced 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;
"The acquisition furthers our strategy to pursue
large assets and has the potential to add short term
production from the existing wells and infrastructure
in place. Canada represents a secure, low risk
venture for Transeuro in a proven hydrocarbon basin.
With the large discount between gas and oil pricing
we believe gas assets are currently undervalued and
that North American gas prices and asset valuations
will recover over the next one to two years."
"Further through this transaction, the removal of the
operating debts of CDN$5.15 million eliminates 75% of
the Companies current liabilities as of December 31st
2010 and creates a strong, stable balance sheet to
support future activities 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,
http://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.
The President & CEO, David Worrall commented; "The
historical production at Beaver River demonstrates
commercial production can be achieved at various
depths from 1000 to 4000 metres and the NSA analysis
indicates the potential for very significant gas in
place. While we have some production and data, more
appraisal work is required to unlock this potential
and to turn the indicative numbers into resources and
then to reserves. With the pipeline on the lease we
aim to achieve commercial production as we work
through the appraisal programme. The British Columbia
Oil and Gas Commission has recently issued strong
statements supporting the gas industry in British
Columbia, in particular for shale gas and the
operating technique of large
hydraulic fracs, so we do not expect the same
environmental hurdles that exist in other areas of
North America."
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
For further information contact: Chris
McGillivray, IR, +1 604 728 0040
David Parry, SVP, +1 604 681 3939
Karen
Jenssen, IR, +47 91729787
http://www.transeuroenergy.com
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. 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.