Transeuro Energy Corp. - Canada - Beaver River, British Columbia

Canada

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The Beaver River field is held 50% by Transeuro and 50% by Questerre Energy Corporation. The lease covers 35 sections and includes and the entire infrastructure. The East Coast main export gas pipeline runs onto the lease.

The Beaver River natural gas field is located in Northern British Columbia and was discovered by Amoco in 1961 with commercial production beginning in 1971 from the deeper Nahanni reservoirs that are also producing from the adjacent Fort Liard area of the southern Northwest Territories where large gas discoveries by Chevron and Encana have confirmed the region's natural gas potential. The Nahanni is historically estimated to contain 1.5-3.0 Tcf original gas in place, with a recovery factor of 10-20%. Situated approximately 150 km northwest of Fort Nelson, the Beaver River field ties into the Duke Energy transmission pipeline. The Company aims to produce bypassed pockets of gas to increase the recovery factor from the Nahanni reservoir.

The field has a series of shale formations over a total thickness of 3000m that are all thought to contain producible gas columns, the Mattson, Besa River and Golata shales. There are 3 wells on production. The Mattson is currently producing in well A-7, the Besa River from well A-2 and the deeper Golata shale from the A-5 well. 8 old wells exist in the field from the original Nahanni development and these are being reviewed for cheap workover operations to access more of the prospective shale intervals.