Transeuro Energy Corp and Questerre Energy Corporation announces the completion of drilling operations on the B-3 well at the Beaver River Field.

The well was drilled ahead of schedule and under budget. It represents the best time performance of any well drilled in the immediate area to date.

Operations on the B-3 well commenced at the end of January 2007. The B-3 well was initially drilled vertically and intermediate casing set at a depth of 1,467m. Drilling operations continued directionally to a measured depth of 2,115m. Numerous gas shows were encountered while drilling. The well is currently being logged and sidewall cores extracted from several prospective intervals prior to setting production casing later this week. Completion and testing will be carried out this summer.

The B-3 well was drilled to delineate the shallow Mattson/Besa River horizon in the southern part of the Beaver River Field. Transeuro and Questerre each hold a 50% interest in this well. A joint venture operating committee managed operations with Questerre appointed as the named operator.

Hal Hemmerich, President and Chief Executive Officer of Transeuro, reported, “We are pleased with the accomplishment of the operating committee and our partner Questerre with the drilling of the B-3 well with an estimated cost of $5.5 million which is $1 million less than AFE. We look forward to continuation of the Beaver River drill program.”