News Release - Strategy Update
(via Thenewswire.ca)
Calgary, Canada: - Transeuro Energy Corp. ("Transeuro" or
the "Company") announces an update to shareholders on the
strategy previously announced on 4th December 2012, to grow the
Company by monetizing assets or securing revenue through existing or
new assets or a combination of the same and the clear priority to
create near term oil and gas opportunities.
In Canada, gas prices on the West Coast line sales point have
increased to the range of $3.3/mcf, and the Company has consolidated
operating efficiencies to reduce unit production costs. At present
production levels the revenue approximately covers production costs,
but if gas production can be increased to the range of 10 mmcf/d, then
unit operating costs should reduce down to the range of $1.2-1.4/mcf,
providing sufficient return to justify the further investment into the
asset. The Company is in discussions with third parties interested in
developing the substantial resource potential at Beaver River and is
hopeful of progressing these discussions through the summer. The
Company is also reviewing the possibility of independently resuming
investments to further appraise the conventional and shale potential
before introducing a partner.
In Ukraine the Company is waiting on the license renewal processes
internal to its Joint Activity Agreement (JAA) partner, the State
Company 'Nak Nadra Ukrayny', to issue a 20 year production license for
the Krasnapolianskoye field and to determine the future direction of
the Karlavskoye license. The Company understands that the State
companies are undergoing a re-organisation that is delaying the
process and also that the license holder and counterparty to the Joint
Activity Agreements will change from Crymgeologia to another
subsidiary, NadraCrym. Transeuro has submitted a work programme to
complete the Krasnapolianskoye gas plant, to tie in the 2 shallow gas
wells, and to drill 2 additional shallow wells to 1100m. In
Karlavskoye the parties have discussed drilling a new, possibly
horizontal well to target the gas and condensate seen in the C14, C15
and C16 reservoirs. As to Povorotnoye, the Board awaits the
commencement and result of the drilling program of Aleator Energy Ltd
that is now expected to start in the summer of 2013. Given the
continued delays in receiving the Krasnapolianskoye license and
approving the JAA work programme, and the related uncertainty the
Company has substantially written down the value of its Ukraine asset,
but advises that some or all of the value may be recovered if and when
the license is re-issued and the JAA's revisions are completed.
Management has been pursuing a number of distinct oil projects which
should deliver near term oil revenues as well as low entry and
development cost and also low risk exploration opportunities. One
project in particular is well advanced. A second project is maturing
but is less certain, but it is possible that both new ventures may be
concluded within the 6 month timeframe previously indicated by the
Board. A number of other projects are at earlier stages of evaluation
and discussion. The Board has also considered mergers and acquisitions
and this remains a possibility.
The Company is carefully managing its cash reserves and expects to
complete the sale of the Armenia rig in the second quarter and to
utilise the Yorkville Share Purchase Agreement as previously
announced.
The Board believes that one of the above paths alone or the paths
combined will provide the Company with the required sustainable short
term revenues and the optimal financial alternatives in the best
interest of the Company and its shareholders. The Company will report
as appropriate but the Board emphasizes that the completion of these
activities contain numerous and various risks and successful outcomes
are not assured.
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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