Transeuro Energy Corp.
TSX VENTURE : TSU
OSLO STOCK EXCHANGE : TSU

Transeuro Energy Corp.

December 23, 2008 09:56 ET

Transeuro Energy Corp.: Further Update on Debt Settlement Negotiations

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 23, 2008) - Transeuro Energy Corp. ("Transeuro", or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) announces that further to the Company's press release dated December 3, 2008, the holders of the bonds that were issued in November 2007 have approved the Company's proposed settlement proposal. Under the proposal, the Company has offered to settle the outstanding interest payment on the bonds by the issuance of Units at a deemed price of $0.10, subject to TSX Venture Exchange approval. Each Unit will consist of a common share plus one-half of a share purchase warrant, with each whole warrant exercisable for two years at a price of $0.15. The Company has also offered to re-price the warrants that were issued in connection with the bond offering from NOK 3.40 (approximately $0.60) to NOK 1.70 (approximately $0.30). The bond holders had convened a meeting earlier today in Oslo, Norway to vote on the Company's proposal.

The Company will now apply to the TSX Venture Exchange for their approval to the proposed terms of the settlement. The Company is also currently negotiating with its Series A and Series B Debenture holders with respect to a similar settlement proposal. The Company will provide a further update with respect to its settlement negotiations as soon as it is appropriate to do so.

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, Armenia and Ukraine.

On behalf of the Board of Directors

David Worrall, CEO and President

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.

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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