Re: Letter of Intent signed
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Apr 28, 2011 01:29AM
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Calgary, Alberta -- Questerre Energy Corporation ("Questerre" or the "Company") (TSX,OSE:QEC) reported today that it has concluded an agreement with Transeuro Energy Corp. ("Transeuro") (TSX-V:TSU) for Transeuro to acquire the remaining 50% interest in the Beaver River Field in northeast British Columbia. Michael Binnion, President and Chief Executive Officer of Questerre, commented, "We are very pleased to have executed this final agreement. Through our equity interest in Transeuro, we will retain an interest in the Liard shale at Beaver River, which we believe has significant potential. As the interest in this play grows, Transeuro now has the flexibility and focus as the operator to bring in a seasoned industry partner to unlock this potential." Pursuant to the agreement, Transeuro will acquire Questerre Beaver River Inc., a wholly owned subsidiary of Questerre that owns the 50% interest in the Beaver River Field. In consideration, Questerre will receive 40 million common shares of Transeuro. Closing is scheduled for early May and is subject to receipt of all requisite approvals and other conditions precedent. Mr. Binnion further added, "The acquisition of our subsidiary provides for continuity for suppliers, employees and other stakeholders in the Beaver River area. Transeuro has been a working interest partner at the Field since 2005 and we are confident that they will continue to operate the Field to the standards we have established." Questerre has plans to maintain its share position through a $2 million commitment to a future financing by Transeuro subject to final terms.