Transeuro Acquires Prospecting License 259

Transeuro Energy will acquire petroleum prospecting license, PPL 259, covering an area of 1,601,242 acres (6,480 square kilometers), located in the foreland area of the Papuan fold belt of Papua New Guinea (PNG). The license was acquired from Rockwell Explorations S.A. As consideration for the license, Transeuro will issue to Rockwell 390,000 common shares of Transeuro. Transeuro's interest will be no lower than 77.5 per cent under the current agreements and possibly as high as 100 per cent if the government of Papua New Guinea elects not to exercise its option to purchase 22.5-per-cent equity in the project. The common shares will be subject to a hold period of at least four months.

Block 259 surrounds the undeveloped gas condensate fields of Stanley, Elevala (433 billion cubic feet) and Ketu currently operated by Santos. In addition, just 50 kilometers to the north is the similar but more substantial undeveloped gas/condensate discovery of Pnyang (1.16 trillion cubic feet). The main producing area in PNG lies 75 kilometers to the east and includes the major Hides gas/condensate accumulation (5.4 trillion cubic feet), and the adjacent fields of Angore (3.33 trillion cubic feet) and Juha (1.56 trillion cubic feet), which will come on production into the PNG gas-to-Queensland pipeline project.