General Corporate Update
In support of its planned resumption of operations on the Karl-101 well in Ukraine, the Company has signed a letter of intent with Weatherford Drilling International BVI Ltd. (www.weatherford.com; NYSE: WFT), for the use of rig 809 that is currently drilling in Crimea for another operator.
The start of gas sales from the Krasnapolianskoye field in Crimea under the contract with AGC has been significantly delayed due to the late delivery of Compressed Natural Gas trucks from Russia that are now expected in April 2010, and delayed investment in the gas plant by AGC. Consequently, gas sales are now anticipated to commence in June 2010. Transeuro will be selling gas at the wellhead from wells 5 & 11 and is not responsible for financing or installing the production equipment.
Gross field production at the Beaver River field in British Columbia during December 2009 and January 2010 was 39.2 mmcf and 30.0 mmcf, respectively, or an average of 1.26 mmcf/d (35,800m3/d) and 1.0 mmcf/d (27,260m3/d), respectively. The Company holds a 50% working interest in the Beaver River Field.
The Company has signed a letter of intent with a private Russian company to further investigate the possibility of financing workover operations to commence oil production from 3 existing wells on 2 oilfields in Southern Russia and for a 50% ownership of the operating company. The Company is preparing an independent reserves report and will provide further details when available.
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's properties are located in Canada, Armenia, and Ukraine. In addition, the Company owns shares in Eaglewood and holds a back-in option to their exploration licenses in Papua New Guinea.
On behalf of the Board of Directors
Aage Thoen
Chairman
For further information contact:
David Parry, SVP, +1 604 681 3939
Karen Jenssen, IR, +47 91 729787
http://www.transeuroenergy.com
The TSX Venture Exchange and Oslo Bors have not reviewed, and do not accept responsibility for the adequacy or accuracy of the content of this news 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.
Early Issuance of Q4 Accounts
The timing is set to coincide with the commencement of the fund raising with Orion Securities ASA ("Orion") this week. An investor presentation will be held in Oslo at 12:00pm on Friday 19th February 2010 at the office of Orion, located at 4th floor, Radhusgaten 25, for all interested parties.
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's properties are located in Canada, Armenia and Ukraine. In addition, the Company owns shares in Eaglewood and holds a back-in option to their exploration licenses in Papua New Guinea.
On behalf of the Board of Directors
Aage Thoen
Chairman
For further information contact:
David Parry, SVP, +1 604 681 3939
Karen Jenssen, IR, +47 91 729787
http://www.transeuroenergy.com
The TSX Venture Exchange and Oslo Bors have not reviewed, and do not accept responsibility for the adequacy or accuracy of the content of this news 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.
Appointment Of Financial Advisor
Over the last 4 months, Transeuro has conducted a review of the various options available to the Company to raise funds to continue development of its assets. The review has included potential farm-outs of existing assets to third parties. Discussions with numerous companies have taken place, but no acceptable offers have been received to date. The Company has therefore decided to retain its interest in its assets and to raise funds independently. An equity raise was considered, but the current share price would require a significant dilution for existing shareholders. The board has sought offers from a number of investment banks on a debt placement and has accepted, subject to TSX Venture Exchange approval, the proposal from Orion as being in the best interest of shareholders.
The proposed range of funding will allow Transeuro to pursue a number of activities. Funding of a minimum of NOK 75 million will allow the Company to complete the Karl-101 well in Crimea, Ukraine. The Company intends to use a modern, international drilling rig to complete the well and thereby avoid the poor drilling performance of the previous local contractor.
If the maximum funding is obtained, then the Company will complete Karl-101 in Ukraine and pursue its previously stated strategic acquisition of an oil asset with either existing production of up to 1,000 bopd or else a high likelihood of production at this level in the very short term. In addition, the Company will allocate funds to pursue activities in the Beaver River field in British Columbia, Canada.
As part of the debt placement the Company will settle the Series A debenture, and will obtain funding to cover G&A costs for a minimum of 12 months. Funds will also be set aside to pay interest on the debt for a minimum of 18 months.
The Chairman of the Board, Mr. Aage Thoen, states, "the Board and Management have evaluated the various options available to the Company to provide a solution that we believe protects the value for our existing shareholders, that secures the Companies future and allows the Company to progress its assets onto the next phase."
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's properties are located in Canada, Armenia, and Ukraine. In addition, the Company owns shares in Eaglewood and holds a back-in option to their exploration licenses in Papua New Guinea.
On behalf of the Board of Directors
Aage Thoen
Chairman
For further information contact:
David Parry, SVP, +1 604 681 3939
Karen Jenssen, IR, +47 91 729787
http://www.transeuroenergy.com
The TSX Venture Exchange and Oslo Bors have not reviewed, and do not accept responsibility for the adequacy or accuracy of the content of this news 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.
Trading of Canada Shares
The process is expected to take a few days and the Company will update the market shortly. The 'TSU-R' share did not trade in Norway today but will again be tradable on Oslo Axess from tomorrow until the merger is finalized.
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's properties are located in Canada, Armenia, and Ukraine. In addition, the Company owns common shares in Eaglewood and holds a back-in option to their exploration licenses in Papua New Guinea.
On behalf of the Board of Directors
Aage Thoen
Chairman
For further information contact:
David Parry, SVP, +1 604 681 3939
Karen Jenssen, IR, +47 91 729787
http://www.transeuroenergy.com
The TSX Venture Exchange and Oslo Bors have not reviewed, and do not accept responsibility for the adequacy or accuracy of the content of this news 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.
General Update
As of mid-December, the Company has sold 842,860 common shares in Eaglewood Energy Inc. ("Eaglewood") for net proceeds of approximately CDN$1,000,000. The funds will be utilized for general corporate purposes and for the payment of outstanding minor debts. Following the sale, the Company retains approximately 11.3 million shares (representing 19.5% ownership) in Eaglewood.
The Company has also reached an agreement with the Series B Debenture holders to extend final repayment until January 29, 2010.
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's properties are located in Canada, Armenia, and Ukraine. In addition, the Company owns shares in Eaglewood and holds a back-in option to their exploration licenses in Papua New Guinea.
On behalf of the Board of Directors
Aage Thoen
Chairman
For further information contact:
David Parry, SVP, +1 604 681 3939
Karen Jenssen, IR, +47 91 729787
http://www.transeuroenergy.com
The TSX Venture Exchange and Oslo Bors have not reviewed, and do not accept responsibility for the adequacy or accuracy of the content of this news 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.