Transeuro Energy Corp.

Transeuro Energy Corp.

May 07, 2009 01:09 ET

Transeuro Energy Corp.: Update on Audit Filing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 7, 2009) - Transeuro Energy Corp. ("Transeuro", or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) announced that a cease trade order has been issued by the Canadian Regulators effective May 5, 2009. The following action plan is in place to remedy the existing filing default and to return to normal trading on both the TSX Venture and Oslo Axess stock exchanges (the "Exchanges").

The Company has arranged for the sale of 2,857,140 of its shares in Eaglewood Energy Inc. ("Eaglewood") that are not used as security for its debentures. The Eaglewood shares are subject to an existing escrow agreement whereby they cannot be traded before October 11, 2010 and are being sold by Transeuro at CDN $0.28, being a discount of 50% of the closing price on April 27, 2009 of CDN $0.56 to reflect the urgency of sale and the 18 month escrow restrictions. The anticipated receipt from the transaction is approximately CDN $800,000. The Company offered the shares for sale to major shareholders and to insiders and is now concluding the sale to a major shareholder of Transeuro and to directors and officers of both Transeuro and Eaglewood. The sale of the Eaglewood shares is subject to TSX Venture Exchange approval.

The funds will be used to commence the 2008 audit and reserves report as required by the Exchanges, so that the Company can re-establish trading as quickly as possible, within approximately 6 to 8 weeks. The Company is also required to file interim reports for the period ending March 31, 2009, by a deadline of May 29, 2009. The remaining funds will be used to fund the Company over the next few months and to maintain title to the main assets.

The Company is currently in discussions with Trade Creditors and Bondholders in an attempt to restructure the existing debts in a 'shares for debt' settlement. Following conclusion of this restructuring the Company anticipates raising new equity funds from existing shareholders to fund activities for the next 6 to 24 months. Depending on the amount of shares involved in this restructuring the Company may call a General Meeting of shareholders to secure support for the restructuring proposals.

The longer term strategy of the Company is to develop its assets without using substantial new funds, by bringing in partners to fund ongoing work programmes, and therefore to reduce the working interest held by Transeuro. Discussions are ongoing with various parties who have expressed interest in the Company's assets.

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

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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