RETRANSMISSION: Transeuro Completes Joint Venture Transaction with RAG

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.