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Tuesday, 4 December 2012
Transeuro Energy sees window of opportunity at Beaver River
Transeuro Energy (CVE:TSU) believes there is significant value at its Beaver River shale asset in Canada despite the low natural gas prices there.
The company said it has received farm-in interest from several parties and intends to pursue these “with commitment and strong resolve”.
It comes as the board met to address the challenges it faces while a review of the Ukraine operations and negotiations with the government regarding the licence and joint activity agreement are being finalised.
“Combined with lower industry drilling and equipment costs the company believes there is a window of opportunity to develop this asset [Beaver River] to a significant play,” the statement read.
“The existing acreage together with nearby opportunities constitutes the immediate focus for shareholder value.”
The company said a variety of projects have been reviewed over the past few months and it will concentrate its efforts on three options: its Beaver River asset, its Ukrainian operations, as well as a number of “distinct oil projects”.
One or more of these options will provide it with the required sustainable short-term revenues, the company said.
The company said its Ukraine operations need a strong joint venture model and tight co-operation with local partners and the government.
The board wishes to go ahead with the licences with suitable financial partners, it also told investors.
Transeuro added that the board is guiding the management team “with a sense of urgency” and has set a target of three to six months to make headway on the options or even conclude them.