TRANSEURO SIGNS LOI FOR EXPLORATION DRILLING RIG
Canadian Corporate Newswire
June 19, 2006 Monday 9:30 AM EST
VANCOUVER, BRITISH COLUMBIA–(CCNMatthews – June 19, 2006) – Transeuro
Energy Corp. ("Transeuro" or the "Company")(TSX VENTURE:TSU) is
pleased to announce that it has signed a Letter of Intent ("LOI")
with High Arctic Energy Services ("HAES") (TSX:HWO.UN)(OSE:HWO.UN)
for the provision of a drilling rig plus associated equipment to
drill three exploration wells in Armenia.
Transeuro has completed the initial study phase of the exploration
operations in Armenia and has collated and interpreted all the
historical data. The company has contracted AESP, the local seismic
acquisition company to provide an additional 131 km of 2D seismic
in the Oktemberian region in the west of the country, where 2 gas
prospects have been identified. The survey is expected to start later
this month. The old seismic data in the area has been reprocessed
and will be integrated with the new data to update the structural
interpretation over the prospects and to finalise the drilling
locations for the first 2 wells in the programme.
Under the provisions of the LOI, HAES has committed to providing the
drilling rig in country, ready to commence drilling on the first
location by 1st February 2007. The first well is located on the
Kamir prospect and is planned to drill down to around 2,500m to test
the Lower Sand Clay (LSC) and Lower Multi-coloured Suite (LMS) where
previous wells have produced gas to surface and have shown hydrocarbon
saturations on wireline logs. Underbalance drilling techniques will
be used to minimize drilling damage and to maximize production rates.
The second well will test the Southwest Oktemberian prospect located
updip of the known gas in the Karmir structure. The structure is
delineated by 7 shallow wells drilled over an area of 8 square
kilometers during the 60’s and 70’s. An independent petrophysical
review of the well logs suggests numerous possible gas reservoirs
in the LSC from 320 – 860m with over 40m of net pay that were never
tested, and additional untested reservoirs in the LMS. The well will
be drilled down to 2,500m to test these and deeper sands that are
identified as potentially hydrocarbon bearing in offset wells.
Following success in the initial seismic programme with AESP, Transeuro
intends to survey the Shorakhpur area where previous wells are reported
to have recovered oil and indicated hydrocarbon saturations on wireline
logs. A third well is planned, either on the oil prospect or in the
Oktemberian region.
Program expenditures will be finalized under the formal drilling
contract to be entered into between the parties.
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, Papua New Guinea and Ukraine.
Harold Hemmerich, President and CEO
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
securities have not been and will not be registered under the United
States Securities Act 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be offered
or sold within the United States or to a U.S. Person unless registered
under the U.S. Securities Act and applicable state securities laws
or an exemption from such registration is available.
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.
FOR FURTHER INFORMATION PLEASE CONTACT: Transeuro Energy Corp.
Ryan King (604) 681 3939 The TSX Venture
Exchange has not reviewed, and does not accept responsibility for
the adequacy or accuracy of the content of this news release.