May 26th

Transeuro Energy Corp.: Ukraine Drilling Update-Karlavskoye 101 Well

Transeuro Energy Corp. (\"Transeuro\" or the \"Company\") (TSX VENTURE:TSU)(OSLO:TSU) provides an update of operations at the Karlavskoye 101 (\"Karl 101\") well in Ukraine. The well has been drilled to a depth of 3,480m with continued gas shows, and has intersected the C15 reservoir interval. As per Ukraine regulations a downhole surge test is currently being performed to confirm fluid type. Thus far gas has been produced to surface from the well. Photo\'s are on www.transeuroenergy.com.

The C15 is the fifth reservoir interval intersected by the Karl 101 well with up to three more reservoir intervals still to be drilled. The top interval, the Turonian was found at 2,940m, the C12 at 3,100m, C13 at 3,216m, C14 at 3,380m and C15 at 3,435m. The first downhole surge test with the well at 3,314m produced gas to surface from the Turonian, C12 and C13 intervals. Gas shows have been seen in each reservoir, and logs obtained over each interval indicate a gross gas bearing interval to date of 540m. Following completion of the surge test the Company plans to continue drilling to the base of the next reservoir target interval, the C16 at approximately 3,550m, and plans to conduct an openhole flowtest in order to further evaluate the reservoirs and the commerciality of the well. Test equipment is being mobilized to site for this purpose.

The \'discovered resources\' attributed to the Karlavskoye field by Fekete Associates Inc. under the Canadian 51-101 reserves reporting standards has increased to a mean estimate of 474 billion cubic feet of gas (85 million barrels of oil equivalent). Under the terms of the Joint Activity Agreement with the local government partner \'Crymgeologiya\', Transeuro has 72% of the profits derived from the development of the Karlavskoye field. Upon closing of the JVA with RAG (www.rohoel.at) of Austria, Transeuro will hold 36% and RAG 36% of the profits.

Discovered resources are defined in the Canadian Oil and Gas Evaluation Handbook: \"Discovered resources are those quantities of oil and gas estimated on a given date to be remaining in, plus those quantities already produced from, known accumulations. Discovered resources are divided into economic and uneconomic categories, with the estimated future recoverable portion classified as reserves and contingent resources, respectively. There is no certainty that it will be commercially viable to produce any portion of the resources.\"

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, Ukraine and Armenia, 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.

SOURCE: Transeuro Energy Corp.

Transeuro Energy Corp. - Vancouver, Canada David Parry (604) 681-3939 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Transeuro Energy Corp. - Oslo, Norway Karen O. Jenssen + 47 917 29 787 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Website: www.transeuroenergy.com