Transeuro Energy begins seismic acquisition in Armenia

Transeuro has contracted Armenian seismic company, AESP, to provide 131 kilometres of new seismic in the Oktemberian region, some 85 km west of Yerevan. This is the first seismic to be acquired in Armenia in more than eight years. The initial equipment testing phase has been completed and acquisition of new seismic has begun, with the aim of defining two gas prospects for the 2007 exploration drilling campaign. The initial seismic will be concentrated over the Karmir gas prospect where two old Soviet wells have produced non commercial gas to surface, and then the survey will be extended to the West, over the 'SWOKT' structure where six old Soviet wells suggest a large shallow gas field may exist. The results of this new survey will be combined with the recently (2006) reprocessed old seismic to provide a revised structural interpretation. The acquisition program is expected to take four months and the data will then be used to finalise the drilling locations for the first two wells in the drilling programme. Transeuro has 100% interest in a 1.8 million acre oil and gas licence in this prospective central Asian country.

The Company has granted 200,000 incentive stock options to two directors of the Company. The exercise price of the stock options is $1.41 per share and have a term of five years. The grant of the stock options are subject to regulatory and exchange approval.

/OilVoice/