QEC Running Again Today On BC News

Aug 27, 2008 02:15 ETTranseuro and Questerre Commence Liard Shale Gas Test
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2008) - Transeuro Energy Corp. ("Transeuro", or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) and Questerre Energy Corporation ("Questerre") announced today that joint operations are under way to test the deeper shale's in the Liard basin, northeast British Columbia, Canada. These shale's are Mississippian in age and are located approximately 100 km to the east of the Horn River shale play.
There are two existing producing tight gas/shale wells (A2 and A7) which Transeuro and Questerre both have 50% ownership and that Questerre has operated for over two years with relatively low decline rates. Compression was recently added to A2 with very promising initial results. Production from the A2 increased to over 4.0mmcf per day which is near its original peak production rate of 4.5mmcf per day. The continued good production performance of these shallower wells together with recent work by Questerre and Transeuro indicate that there is also strong potential for the deeper Devonian shale's. Gas in place numbers for this area for the Mississippian siltstone/shale sequence are confirmed at over 1 tcf per section (discovered resource) based on independent work by Nederland, Sewel & Associates Inc. Transeuro has a 50% interest in 35 sections with take away capacity in place.
The current operation is a re-entry of the A5 well. Three intervals will be perforated and minor stimulations will be conducted to evaluate reservoir and rock mechanical properties prior to an inflow test. The gross thickness of these prospective deeper shale's that are confirmed with good gas shows are in excess of 500m and these tests will assist in identifying the net productive reservoir intervals. If the results of the inflow tests are promising, a full stimulation will be carried out in a future operation to test for commercial flow rates.
Michael Binnion, President of Questerre commented "We have great control of land and infrastructure in this area. Expertise gained from our Quebec shale play has allowed us to re-evaluate our past results. We believe we have been able to correlate the results to particular shale qualities which greatly encourage us that a predictive model can be created. The very high gas in place numbers and promising production results from our two wells in the Liard shale's make this test very interesting."
Hal Hemmerich, President of Transeuro commented "We are excited about the prospects of the Liard basin shale and we see the similarities to the Horn River shale. The license has six existing well bores, the surface infrastructure and the export line that all add significant commercial advantage. We also see the value in the continuation of the development of the upper shale's which have produced strongly over the past two years and believe this work program will highlight the shale commerciality in the Liard Basin."
This resource is not classified as reserves, contingent resources or unrecoverable resources at this time until determination of the appropriate completion and stimulation techniques and the determining of areas of maximum natural fracturing to maximize recovery of this discovered resource. There is no certainty that it will be economically viable or technically feasible to produce any portion of the reported discovered resource.
Discovered resources are defined in the COGE Handbook, "Discovered resources are those quantities of oil and gas estimated on a given date to be remaining in, plus those quantities already produced from, known accumulations. Discovered resources are divided into economic and uneconomic categories, with the estimated future recoverable portion classified as reserves and contingent resources, respectively."
Transeuro Energy Corp. 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, Ukraine and, through majority ownership in Eaglewood Energy Inc, in Papua New Guinea.
On behalf of the Board of Directors
Harold Hemmerich, President and CEO
This press release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States.
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.
Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.
The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of the content of this news release.

U.S. data buoys stocks, oil rises above $118

GLOBAL MARKETS-U.S. data buoys stocks, oil rises above $11808.27.08, 9:00 AM ET

United States - * Durable goods data lifts stocks, Wall Street prospects

* Dollar falls back from 2008 highs
* Oil rises above $118 a barrel

(Updates throughout with moves after U.S. data)
By Jeremy Gaunt, European Investment Correspondent

LONDON, Aug 27 (Reuters) - Surprisingly robust U.S. durable goods data lifted European stocks out of negative territory on Wednesday and set up the prospect of a positive start on Wall Street.
Oil prices climbed for the third day in a row, however, and the dollar slipped back from recent highs.
New orders for long-lasting U.S. manufactured goods jumped a surprising 1.3 percent in July on strong civilian aircraft sales, while a gauge of business investment also rose unexpectedly, the U.S. government reported.
This added some positive sentiment to stock markets weakened for most of the day by earnings concerns, worries about banking stress, Western tensions with Russia over Georgia and a gloomy outlook for the world economy.
"(The data) bodes well for capital spending in the third quarter. It doesn't seem like the credit crisis is impacting capital spending, said Matthew Moore, economic strategist at Banc of America in New York.
MSCI's main gauge of world stocks was higher on the day but still trading around a two-year low.
It has lost more than 17 percent so far this year, on track for one of its worst annual performances in more than 20 years.
European shares reversed course after the data after being deep in the red. The FTSEurofirst index of pan-European shares was flat having earlier been almost 1 percent lower on the day.
Banking stocks were weighing. "Financials have been under pressure due to concerns about the speed of the economic slowdown and worries that there is still further fallout from the subprime credit crunch issues," said Henk Potts, equity strategist at Barclays (nyse: BCS - news - people ) Stockbrokers.
Societe Generale noted that troubles at U.S. mortgage agencies Freddie Mac (nyse: FRE - news - people ) and Fannie Mae (nyse: FNM - news - people ) were a threat to U.S. commercial banks, which it estimated hold some $1 trillion in the agencies' debt, or 9 percent of the banks' balance sheets.
Earlier, Japan's Nikkei average dipped 0.2 percent, led lower by exporters such as Honda (nyse: HMC - news - people ) and property shares which dropped after the collapse of another builder.
Sohken Homes filed for protection from creditors with 33.8 billion yen ($308 million) in debt, the latest in a string of collapses in the property and construction sectors.
GUSTAV LIFTS OIL, DOLLAR SLIPS
Barclays' Potts said stock investors were still concerned about the high price of oil and its effect on inflation and sentiment despite the price of crude now being well off its recent, all-time highs.
Oil rose for a third straight session, above $118 a barrel, on worries that Tropical Storm Gustav will threaten oil and natural gas installations in the Gulf of Mexico.
Crude for October delivery rose $1.82 to $118.09 a barrel, after settling up $1.16 on Tuesday.
Gustav was downgraded to a tropical storm on Wednesday after it slammed into Haiti on Tuesday, but forecasters expect wind speeds to regain hurricane force, and it could be the first major storm to threaten oil and gas production in the Gulf of Mexico since 2005.
The euro and yields on euro zone government bonds rose to session highs after Bloomberg quoted the European Central Bank Governing Council Member Alex Weber as saying talk of a euro zone interest rate cut is "premature".
"The market became too confident that rate cuts were on the card," said a bond trader in London.
Weber, widely considered to be among the most 'hawkish' and influential of ECB policymakers, said there is no scope for rate cuts and hinted that there might even be room to raise them if the economic outlook improved toward the end of the year.
The euro jumped on the headlines and was up 0.6 percent at around $1.4737.
The dollar index, a measure of the greenback's value against six major currencies, fell 0.5 percent on the day to 76.87, having hit a 2008 high on Tuesday at 77.619.
Euro zone government bond yields climbed after the Weber comments promoted a sell off.
The interest rate-sensitive two-year Schatz yield was up 11 basis points at 4.092 percent, while the 10-year Bund was up 6 basis points at 4.172 percent. (editing by Mike Peacock)