Calgary, Canada: - Transeuro Energy Corp. ("Transeuro" or the "Company") announces an update to shareholders on the corporate strategy: to grow the Company by monetizing assets and securing short term revenues through existing or new assets or a combination of the same and the clear priority to create near term oil and gas opportunities.
In Canada, gas prices at the Spectra pipeline sales point have stabilised around $3/mcf. The Company has continued discussions with third parties interested in developing the substantial resource potential at Beaver River and is anticipating an offer before year end. The Company is also considering resuming investments independently to work on the A-8 well that was drilled in 2008. This well has access to the deeper conventional Nahanni reservoir as well as the Besa River shales that are being appraised by numerous third party wells in the area. Results from nearby wells have indicated the Besa River shales have considerable productive capability.
In Ukraine the Company has been advised that the re-organisation of relevant government companies is complete and discussions have proceeded with the new management concerning the renewal of the Joint Activity Agreements ("JAA's"). Transeuro has submitted a work programme to complete the Krasnapolianskoye gas plant, to tie in the 2 shallow gas wells, and to drill 2 additional shallow wells to 1100m. In Karlavskoye the parties have discussed drilling a new, possibly horizontal well to target the gas and condensate seen in the C14, C15 and C16 reservoirs. The Board awaits the completion of fund raising activities by Aleator Energy that will allow the commencement of the Povorotnoye 105 well in the second quarter of 2014.
In Jordan the Company is supporting the Natural Resource Authority in progressing the Enhancement Program Agreement, ("EPA"), through the various government procedural steps and Parliamentary approval. The Company has received numerous indications of interest from third parties to farm in to the project and provide funds to cover the first phase of testing and the installation of artificial lift that is expected to achieve continuous production at flow rates significantly higher than the present intermittent flow from the Hamza field.
Throughout the year the Company has reviewed numerous new venture, acquisition and merger opportunities. A clear strategy has emerged to consolidate the Company's assets together with other assets or companies to pursue low risk, technologically simple, short term production and development opportunities. A number of merger discussions are ongoing and one in particular may be progressed in the short term.
The Company continues to carefully manage its cash reserves until the above milestones are achieved that will provide the company with additional funding. The Company will report as appropriate but the Board emphasizes that the completion of these activities contain numerous and various risks and successful outcomes are not assured.
Aage Thoen, Chairman of the Board commented, "The Company is challenged by the present financial environment for junior E&P companies and has responded by pursuing a clear strategy to build a portfolio of near term, lower risk, production and development projects. We expect these activities to conclude over the next period and thereby clarify the next phase of development for Transeuro".
ABOUT THE COMPANY
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 owns 100% of a gas producing property located in British Columbia, Canada, has interest in gas exploration and appraisal developments in Crimea, Ukraine and is an oilfield redevelopment project in Jordan.
On behalf of the Board of Directors
Aage Thoen, Chairman
For further information contact: Darren Moulds, IR, +1 403 705 1919
http://www.transeuroenergy.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the Oslo Axess accepts responsibility for the adequacy or accuracy of this release. 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.
This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. See our Annual Information Form for a description of risks and uncertainties relevant to our business, including our exploration and development activities. Test production rates may vary from sustained production rates when developing a well or a deposit. The commerciality of any discovery can be affected by many factors including product prices, operating costs, capital costs, government take and sustained production levels and ultimate recovery of hydrocarbons. Hydrocarbon indications from drilling or wireline log data do not necessarily mean that mobile hydrocarbons are present in the formation or can be produced.