Transeuro Energy Corp.: Ukraine Arbitration Initiated

Transeuro Energy Corp. ("Transeuro", or the "Company") (TSX
VENTURE:TSU)(OSLO:TSU) announces that the Standstill Agreement entered into with
Rohol-Aufsuchungs Aktiengesellschaft ("RAG") in connection with the Company's
dispute with RAG expired on February 15th. The Company has been in discussions
with RAG over the last few months to seek an amicable resolution of the dispute
arising from RAG's purported rights of withdrawal from the joint venture company
"Scythian Energy BV" which controls the Company's Ukraine assets.


On February 16th Transeuro received a copy of the notice issued on behalf of RAG
to the secretariat of the International Chamber of Commerce requesting that an
arbitration panel be convened to resolve the dispute. Transeuro has acknowledged
receipt of the notice and is continuing to discuss the ongoing dispute with RAG
while preparing for the arbitration.


Operations on the Karlavskoye 101 well remain suspended pending resolution of
the dispute and the shareholding of Scythian Energy. The Ukraine authorities
have been fully informed of the situation.


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

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.