Transeuro Energy Corp.

Transeuro Energy Corp.

April 02, 2009 00:15 ET

Transeuro Energy Corp.: General Company Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 2, 2009) - Transeuro Energy Corp. ("Transeuro", or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) reported today that it has not filed its annual audited financial statements which were due to be filed at the end of March with the British Columbia and Alberta Securities Commissions. The Company has also not filed its annual oil and gas reserve reports. The Company has filed unaudited fourth quarter financial statements on February 28, 2009 as required by the Oslo Stock Exchange. The audit has not been completed because the Company does not have funds to pay its auditor. An application has been made to extend the filing date until the end of April but there is no indication whether this will be considered.

Transeuro has been short of operating cash following the notice of purported withdrawal of RAG from the Scythian Joint Venture Company, when RAG defaulted on payment of US$3 Million as the final part of the purchase price and did not pay their share of costs for Scythian Energy and Ukrainian subsidiaries. The parties are now moving forward with arbitration in Amsterdam under the ICC Rules in an attempt to resolve the dispute. The resulting cash shortage has restricted Transeuro's ability to maintain normal business functions. Over the last few months the Company has sold moveable assets where possible, closed offices where appropriate and reduced headcount to retain only core personnel. The Company has a number of long term trade creditors who have commenced litigation against the Company, and discussions are proceeding with such creditors to allow the Company more time to complete a restructuring and to obtain additional funding.

The Company has retained the services of a Norwegian investment Bank and is pursuing discussions with prospective investors and existing shareholders in an effort to raise additional funds during April 2009. The intention is that funds will be used to complete the 2008 audit, to settle most of the Company's short and long term debt and to fund ongoing operations. Notwithstanding the foregoing, there is no certainty that the Company will be able to raise funds in order to meet any or all of its current short term and long term liabilities and the Company may have to consider seeking protection from its creditors. The Company's current and long term liabilities total approximately $48m. The Company will have interest payments due on its bonds and debentures in May, 2009.

The Company has also retained Stellar Energy Advisors from London to locate a party to farm in to the Company's Ukraine assets in order to fund the completion of the Karlavskoye 101 well. A number of companies have shown interest and are reviewing the technical information. Discussions are also continuing with companies interested in farming in to the Beaver River field in Canada.

The Company also announces that the Directors have agreed to waive all fees for 2008 and 2009 and that senior management have agreed to a 50% reduction in salaries for 2009.

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

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 securities have not been and will not be registered under the United States Securities Act 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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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