Transeuro Signs Joint Venture Agreement

Transeuro Energy Corp. ("Transeuro", or the "Company") (TSX
VENTURE:TSU)(OSLO:TSU) announces it has entered into a Joint Venture Agreement
("JVA") with RAG Rohol-Aufsuchungs Aktiengesellschaft ("RAG") to develop
Transeuro's existing Ukrainian assets and Joint Activity Agreements with the
local Ukrainian state company "Crimgeologiya". The new Joint Venture will also
pursue additional business opportunities in Crimea.


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.


Transeuro and RAG will be 50:50 partners in the new joint venture. The JVA
outlines substantial tangible benefits to Transeuro including direct payments to
Transeuro for past drilling costs, seismic costs and inventory. And 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 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.
The potential contribution by RAG to the total capital budget for 2008 and 2009
is up to US$70 million with Transeuro responsible for its remaining share of
well and seismic costs. Following success of the Karlavksoye101 and Povotonoye
104 wells both RAG and Transeuro each envisage investing around US$ 280 million
into these two Crimea fields.


Both Transeuro Energy 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.


Under the terms of the JVA, Transeuro will reorganize all of its existing
Ukrainian assets such that they will all be held indirectly by a wholly owned
Dutch subsidiary of Transeuro. At the closing of the transaction contemplated by
the JVA, Transeuro will transfer 50% of the shares of its Dutch subsidiary to
RAG.


There are a number of conditions precedent to the closing of the transaction
contemplated by the JVA including, among other things, the entering into by the
parties of a Joint Management Agreement, the approval of the Antimonopoly
Committee of Ukraine and the completion of the corporate restructuring of
Transeuro and its Ukrainian assets. The parties anticipate closing the
transaction within 60 days.


Hal Hemmerich, President and Chief Executive Officer of Transeuro commented, "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".


Markus Mitteregger, Managing Director of RAG said, "The joint activity with
Transeuro in Ukraine is a further important step in our international growth
strategy. Ukraine is a country of prime importance in the European energy
context and we look forward to develop resources for the Ukrainian market".


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.