Transeuro Announces Beaver River Tie-In

Transeuro Energy Corp. reports that construction has commenced to tie-in the A-2 well at the Beaver River Field.

The tie-in follows an extended production test for this well completed late in February. The well continued to clean up with production averaging approximately 2.04 mmcf/d (340 barrels of oil equivalent) over the last 24 hours of the test with an average of 14 bbls/mmcf of water on a 19.05 mm choke.

Transeuro anticipates the well will be placed on stream by the middle of the second quarter. Stimulation operations on the A-6 well were also completed earlier this month. After preliminary clean-up, the well initially flowed natural gas at lower than expected rates. It is currently shut-in for an extended production test while a detailed evaluation of the stimulation data is finalized.

Questerre Energy Corporation our partner, and Transeuro believe the results from these two wells have confirmed the commerciality of the Mattson sands. Questerre has granted Transeuro, its farm-in partner, an extension to complete the initial work program. With the extension, Transeuro recently announced it is developing plans for an initial six well program at the Field for the Mattson sands and for a deep Nahanni test later in the year.

Hal Hemmerich, President and Chief Executive Officer, stated, "We are very pleased with the initial results from the work program and are excited about being the first company in the Beaver River field to produce commercial gas from this formation."