Transeuro Energy Corp announces the commencement of drilling operations in Armenia.

• Karmir-1 exploration well spudded in Block 2, Armenia
• Well targeting two horizons in the Karmir gas prospect
• Drilling results expected by end year

Drilling has started on the Karmir prospect in the Armavir region of Block 2, Armenia. Karmir-1 is the first exploration well to be drilled in the country for ten years.

The well is targeting two horizons in the Karmir gas prospect, the Lower Sand Clay (LSC) and the Lower Multicoloured Suite (LMS), and is planned to have a total depth of 2200 meters. Drilling operations will be followed by flow-testing should hydrocarbons be discovered.

The well is located less than 3km from a new gas pipeline route forming part of a recently installed domestic gas distribution system, and the Company is in discussion with the Government of Armenia regarding early hook-up of the well in the event of a commercial discovery.

Harold Hemmerich, President and CEO, Transeuro Energy Corp. commented, "I am very pleased that Karmir-1 has spudded. The Company has entered an exciting operational phase and is now simultaneously drilling in Canada, Armenia and Ukraine, and is planning a drilling operation in PNG. The drilling results are keenly anticipated and will generate important information for the Company".