Transeuro Energy Corp.

Transeuro Energy Corp.

May 16, 2008 00:15 ET

Transeuro Closes Debenture Financing; Appoints Interim CFO

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 16, 2008) - Mr. Hal Hemmerich, President and Chief Executive Officer of Transeuro Energy Corp. ("Transeuro" or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) is pleased to announce the Company has completed a non-brokered private placement of 4,000 units (the "Units") for gross proceeds of $4,000,000 (previously announced April 11, 2008). Each Unit consisted of a secured eighteen month convertible debenture (a "Debenture") with a principal amount of $1,000 and 5,250 warrants (the "Warrants").

The Debentures will carry an interest rate of 15% per annum payable semi-annually in arrears. The interest rate will be reduced to 10% per annum if the Debentures are repaid within six months of the date of issuance of the Units and will be reduced to 12% per annum if the Debentures are repaid between 6 months and 12 months after the date of issuance. The principal amount of each Debenture, plus accrued interest, will be convertible into common shares at the purchaser's election at any time following the date that is six months from the closing date up until the maturity date at a conversion price equal to $0.20. The conversion price for the Debentures issued to two directors of the Company that participated in the offering will be $0.23. The Company will have the right to repay the principal amount of each Debenture, plus accrued interest, at any time without penalty or charge.

The Debentures were issued pursuant to an indenture entered into between the Company and Computershare Trust Company of Canada (the "Trustee"). As security, the Trustee on behalf of the Debenture holders has been granted a first priority security interest in 17,142,860 common shares of Eaglewood Energy Inc. held by Transeuro.

Each Warrant is exercisable for a period of eighteen months into a common share of Transeuro at an exercise price equal to $0.20. The exercise price for Warrants issued to the two directors that participated in the offering will be $0.23. The Company has issued a total of 21,000,000 Warrants in connection with the private placement. Neither the Warrants nor the Debentures will be listed for trading on the TSX Venture Exchange or the Oslo Axess. All securities issued are subject to a hold period expiring on September 15, 2008. The net proceeds of the offering will be used for general corporate purposes.

The Company further announces that Mr. Danny Lee has resigned as CFO to pursue other opportunities. The Board and Management wish Danny well and thank him for his diligence during his tenure. Mr. Edward Farrauto, the Company's current Executive Vice-President has been appointed as interim Chief Financial Officer (CFO) while the Company looks for a full time CFO.

Transeuro Energy Corp. is involved in the acquisition of petroleum and natural gas rights, the exploration for, and development and production of crude oil, condensate and natural gas. The Company's properties are located in Canada, Ukraine and Armenia, and through majority ownership in Eaglewood Energy Inc, in Papua New Guinea.

On behalf of the Board of Directors

Harold Hemmerich, President and CEO

This press release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States.

The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from the targeted results. The Company relies upon litigation protection for forward looking statements.

Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.

The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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