TRANSEURO ENERGY PRESS RELEASE
May 26, 2008
Vancouver, Canada: – Transeuro Energy Corp. ("Transeuro" or the
"Company") provides an update of operations at the Karlavskoye 101
("Karl 101") well in Ukraine. The well has been drilled to a depth of
3,480m with continued gas shows, and has intersected the C15 reservoir
interval. As per Ukraine regulations a downhole surge test is
currently being performed to confirm fluid type. Thus far gas has been
produced to surface from the well. Photo’s are on
The C15 is the fifth reservoir interval intersected by the Karl 101
well with up to three more reservoir intervals still to be
drilled. The top interval, the Turonian was found at 2,940m, the C12
at 3,100m, C13 at 3,216m, C14 at 3,380m and C15 at 3,435m. The first
downhole surge test with the well at 3,314m produced gas to surface
from the Turonian, C12 and C13 intervals. Gas shows have been seen in
each reservoir, and logs obtained over each interval indicate a gross
gas bearing interval to date of 540m.
Following completion of the surge test the Company plans to continue
drilling to the base of the next reservoir target interval, the C16 at
approximately 3,550m, and plans to conduct an openhole flow test in
order to further evaluate the reservoirs and the commerciality of the
well. Test equipment is being mobilized to site for this purpose.
The ‘discovered resources’ attributed to the Karlavskoye field by
Fekete Associates Inc. under the Canadian 51-101 reserves reporting
standards has increased to a mean estimate of 474 billion cubic feet
of gas (85 million barrels of oil equivalent). 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 with RAG
() of Austria, 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 and Armenia, 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
Phone: +1 (604) 681 3939
[email protected]
http://www.transeu roenergy.com
Karen O. Jenssen – Oslo, Norway
Phone: + 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.