Calgary, Canada: - Transeuro Energy Corp. ("Transeuro" or the "Company") announces that the Company has signed a non-binding Heads of Agreement to acquire an oil and gas company with stable existing production revenue, development activities plus a solid appraisal and exploration portfolio. The transaction is subject to inter alia completion of an equity financing for the combined entity, detailed due diligence by both parties, third party approvals, regulatory and stock exchange approvals and restructuring of the Company's bond. The Company is working with its advisors to secure the required investor interest and support from the bond holders and will provide updates as appropriate.
In Canada, gas prices at the Spectra pipeline sales point have increased during the past few months, however production from the Beaver River field remains shut in and will resume when the Company has secured a merger or acquisition. With the recovery in gas prices the preferred strategy is now to continue development of the asset without farming out an interest in the field.
Given the recent political events and the unsuccessful operational results in Ukraine the Company has ceased all operations in the country related to the previously held Karlavskoye and Krasnapolianskoye licenses and any further progress on the Joint Activity Agreement will only be to support the exit process. Progress on the Povorotnoye field is dependent on the ability of Aleator to secure funding for the Povorotnoye-105 well.
In Jordan the Company has begun the process of registering the local operating entity to support the Natural Resource Authority in progressing the Enhancement Program Agreement through the various government procedural steps and Parliamentary approval. The Company has received interest from third parties to farm in to the project and provide funds to cover the first phase of testing and the installation of artificial lift that is expected to achieve continuous production at flow rates significantly higher than the present intermittent flow from the Hamza field.
Aage Thoen, Chairman of the Board commented, "Various initiatives have been taken with the purpose of resolving the Company's financial challenges and as part of that we have held constructive negotiations with selected companies that will secure additional production revenue and create a stronger asset portfolio. We are happy to have signed an HoA with a company of great strategic fit and hope to conclude the acquisition in the near term.".
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 property located in British Columbia, Canada, has interest in gas exploration and appraisal developments in Crimea, Ukraine and has an oilfield redevelopment project in Jordan.
On behalf of the Board of Directors
Aage Thoen, Chairman
For further information contact: Darren Moulds, IR, +1 403 705 1919
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.
Release ID: 34706