Transeuro Receives Final Award for Oil Field Enhancement Agreement in Jordan

27.06.2013  |  The Newswire

(via Thenewswire.ca)

Calgary, Canada: - Transeuro
Energy Corp. ("Transeuro" or the
"Company") announces that the Company has received the final
award for a Production Enhancement Agreement ("PEA") from
the Natural Resource Authority of the Government of the Hashemite
Kingdom of Jordan (the "NRA") to Operate and redevelop the
'Hamza' oil field in Jordan. The award follows an open bid process in
January where the main terms of the PEA were agreed. Final negotiation
of the minor terms of the PEA is underway and the agreement then
requires ratification by the Jordan Parliament.

The Hamza oilfield is located approximately 100km South
East of Amman, close to the border with Saudi Arabia and began oil
production from 4 wells in 1984. The field has produced approximately
900,000 barrels of 32 API oil from 2 reservoirs, the Shuaib and
Hummar, at a depth of 3000m. Initial test flow rates from the wells
vary from a few hundred to over a thousand barrels per day. Field
production achieved a maximum annual rate of 450 barrels of oil per
day (bopd) that has now declined to 20 bopd. The wells do not produce
any significant gas. The existing field facilities include flow lines,
inlet separation, storage tanks, and road tanker loading facilities.
Crude production is transported by road tanker to the Jordan refinery
outside Amman and sold at international prices.

The license area surrounding the Hamza oilfield is
approximately 100 square km and includes a further 4 wells that have
tested oil to surface and can be further investigated by the Company
to determine if production enhancement techniques can achieve
continuous commercial production rates from these 4 new pools. The
most recent well drilled in the area was in 1989 when locations were
derived from 2D seismic. More recent seismic covering the license area
has identified 4 additional exploration prospects.

The Company will issue a further announcement on the terms of the PEA
when final negotiations with the NRA are completed.

David Worrall, President & CEO commented, "The
Company believes that by commencing artificial lift in the existing
wells, by investigating the single well discoveries and with further
drilling based on the new 3D seismic survey, that significant
additional oil recovery is possible from the Hamza field and the wider
license area.

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
and has interest in gas exploration and appraisal developments in
Crimea, Ukraine.

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.

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