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

Transeuro Energy Corp.

April 23, 2009 00:15 ET

Transeuro Energy Corp.: Update on Eaglewood Energy

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 23, 2009) - Transeuro Energy Corp. ("Transeuro", or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) reported today that its subsidiary Company, Eaglewood Energy, has issued a press release concerning farm out activity on its licenses in Papua New Guinea.

On 1st October 2007 Transeuro announced the closing of the transaction to sell 4 exploration licenses in PNG to Surge Resources Inc. who later changed their name to Eaglewood Energy (TSX VENTURE:EWD). The summary terms of the transaction are:

- Transeuro holds approximately 52% of the issued and outstanding share capital of Eaglewood Energy, subject to a three year value security escrow agreement under TSX Venture Exchange rules with releases occurring every 6 months following the closing of the transaction.

- Transeuro holds a pre-emptive right to acquire up to 50% of the securities to be issued by Eaglewood pursuant to any financing of Eaglewood involving the issuance of common shares or securities convertible into common shares completed within two years from the closing of the transaction.

- Transeuro will be granted a "back in right" whereby, after Eaglewood has drilled and tested three exploration wells on the Licenses, Transeuro may elect to acquire a 10% working interest in the Licenses by paying to Eaglewood an amount equal to 10% of the exploration and development costs incurred up to that date.

The Eaglewood release stated that:

"Eaglewood Energy Inc. ("Eaglewood") (TSX-V trading symbol "EWD") wishes to announce that it has entered into a binding farm-out agreement in respect of PPL260 in the Papuan Basin Fold Belt, one of Eaglewood's four 100 percent owned exploration licenses in Papua New Guinea. The farm-out agreement is with Oil Search (PNG) Limited ("OSPNG"), a subsidiary of Oil Search Ltd., a company listed on the Australian Stock Exchange. OSPNG is the most active energy company in Papua New Guinea, and currently operates all the existing oil and gas production facilities in the country.

Under the terms of the farm-out agreement, OSPNG will pay Eaglewood US $1,500,000 and will complete the required seismic program at its sole cost by June 30, 2009 to earn a 10% interest in PPL 260. OSPNG and Eaglewood plan to shoot further seismic in PPL260 at an estimated cost of US $1,600,000 of which Eaglewood's share is expected to be approximately US $800,000. After the completion of all the seismic work, OSPNG will have a three-month period in which to elect to earn an additional 60 percent interest in PPL260 in exchange for paying 90 percent of the cost of drilling an exploration well. PPL260 is on the same trend as the multi-TCF Hides and Juha gas fields which will be providing the majority of the gas for the $12 billion ExxonMobil led LNG project planned for first production in 2013.

The farm-out agreement is subject to certain conditions precedent, including receipt of Papua New Guinea Government approval to the farm-out and amendments to the work commitments under PPL260.

Eaglewood's CEO, Brad Hurtubise, commented: "While our business plan is to farm out interest in our licenses to generate activity and reduce costs, we still intend to maintain a significant equity ownership in our licenses. This farm-out is the first of four we are trying to finalize with various parties this year. We are delighted to have completed this agreement with OSPNG and to have them as our partner, given that they are a high quality operator with significant in-country expertise."

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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