| VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 14, 2008) - Transeuro Energy Corp. ("Transeuro" or the "Company") (TSX VENTURE: TSU)(OSLO: TSU) is pleased to announce the closing of the previously announced Joint Venture (the "JV") with Rohol-Aufsuchungs Aktiengesellschaft ("RAG"). Transeuro and RAG are now 50-50 joint venture partners with respect to all of Transeuro's Ukrainian properties and assets. The purpose of the JV will be to further explore and develop the JV's Ukrainian gas assets and Joint Activity Agreements with the local Ukrainian state company "Crimgeologiya". The new JV will also pursue additional business opportunities in Crimea. Transeuro has, over the past 6 months, reorganized its Ukrainian assets, so that they are held under a Dutch holding company corporate structure. Upon the closing of the JV, Transeuro issued 50% of the common shares of its wholly owned Dutch subsidiary to RAG, which in turn gives RAG a 50% interest in all of Transeuro's Ukrainian operations. In consideration, Transeuro has received a cash payment from RAG in the amount of $US 8.9 million, which amount represents payment for past drilling costs, seismic costs and inventory. Under various firm and conditional funding formulas, RAG will provide its 50% investment share and contribute up to an additional 25% of the drilling of three wells and the 3D seismic over two fields (making RAG's total contribution up to 75% of well and seismic costs). In addition RAG will contribute to an agreed fund for the acquisition of new licenses in Crimea and for field development. In conjunction with the closing, Transeuro and RAG have entered into a comprehensive Joint Management Agreement, which agreement will govern the operational activities of the parties in the Ukraine. RAG (www.rohoel.at) is a non listed Austrian stock company owned by major Austrian and German energy and utility companies, principally EVN, a leading Austrian energy, water and infrastructure company (Vienna exchange symbol EVN) and E.ON Ruhrgas AG, a major European integrated gas company (Frankfurt exchange symbol EOA.DE). RAG, established in 1935, is the oldest E&P company in Austria, and operates 51 gas fields and 40 oil fields including substantial gas storage facilities. Annual gas sales volumes are around 1.1 billion m3, with over 3 billion m3 of operational and projected working gas storage. Both Transeuro and RAG believe there is a considerable business opportunity in Ukraine from the Joint Activity Agreements held with Crimgeologiya and that there is an opportunity for further growth through the acquisition of additional discovered non producing fields. The business environment in Ukraine and the domestic gas price has strengthened considerably over the past two years and the government has raised the emphasis on supporting domestic exploration and production. Hal Hemmerich, President and Chief Executive Officer of Transeuro, commented, "I would like to thank the teams representing both parties for their efforts over the past six months. I would also like to recognize the work over the past several years of our Ukraine operational team. We look forward to working with RAG to further the development of our projects in Ukraine. RAG has considerable expertise in exploration & production, gas marketing, distribution and storage that will be of great benefit to the partnership. Together, with RAG being a financially strong company, we can look at more projects." 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, Ukraine 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. Contacts: Transeuro Energy Corp. - Vancouver, Canada David Parry (604) 681-3939 Transeuro Energy Corp. - Oslo, Norway Karen O. Jenssen + 47 917 29 787 Email: kjenssen@transeuroenergy.com Website: www.transeuroenergy.com http://www.transeuroenergy.com Copyright © Hugin AS 2008. All rights reserved. |
