Transeuro Energy Co. Prepares To Search for Oil & Gas in Armenia

CANADIAN CORPORATION TRANSEURO ENERGY STARTS PREPARATION WORKS FOR
SEARCH OF OIL AND GAS IN ARMENIA

YEREVAN, FEBRUARY 23. ARMINFO. A Canadian corporation Transeuro Energy
(the former Indusmin Energy) has started preparation works for search
of oil and gas in the so-called second licensed bloc embracing the
territory of Armavir region, Armenia, says Head of the Department for
Fuel and Energy Recourses, the Armenian Energy Ministry, Candidate of
technical sciences Andranik Aghabalyan in his interview to ARMINFO.

He says that due to good weather conditions, the corporation will
start field works to determine the place of the first well. Transeuro
Energy has concentrated its efforts on the search of natural gas
resources taking into account the infrastructures of industry in
Armenia. He explains that Armenia is the only country in the territory
of the former USSR that lacks oil-processing facilities, at the same
time having a well-developed gas transport system. In this connection
gas recovery for industrial purposes is more perspective than oil.
During the first five years, the corporation pledges to invest in
search of gas and oil in Armavir region at least $10.5 mln, Aghamalyan
says. He adds that as to the second licensing bloc, Transeuro Energy
has become a legal successor of the Armenian-American geological
survey company having purchased its rights and obligations;
continuation of the started work is in question.

It should be noted that the contract of the Armenian Government and
the Armenian-American geological survey company on the second licensed
bloc was signed yet on 27 January 1997 and came into effect 6 February
1997. Active field works were carried out within the first three years
in Armavir. After the owner of the company Alen Polsen died in July
2000, the works were suspended and the company was just processing the
received data and seeking for financial partners. In 2004 Canadian
Indusmin Energy renamed into Transeuro Energy in the autumn of 2004
has become its legal successor. Later the company opened its office in
Armenia.