=======================================================================
     NEWS RELEASE -- KARLAVSKOYE DEVELOPMENT TO COMMENCE
=======================================================================

Vancouver, Canada: - Transeuro Energy Corp. ("Transeuro" or the "Company") issues an update on its Ukraine operations as follows:

Following the successful completion of testing operations on Karlavksoye-101 the company intends to commence development of the Karlavskoye field using the strategy of vertical wells with multiple
stacked hydraulic fractures. The forward schedule is now to complete between 3 and 5 hydraulic fracturing operations on Karl-101 in the 3rd quarter this year to achieve initial flow rates in the range of 10 mmcf/d (280,000 m3/day) and to commence production into the adjacent pipeline shortly thereafter at a sales rate around 5 mmcf/d (140,000m3/d). Results from the final test also suggest the Karlavskoye field is likely to be substantially larger than previously reported.

The President & CEO, David Worrall commented on the conclusions of the testing programme:

.. Overall the test results suggest that the Cenomanian reservoirs are best described as 'tight gas' reservoirs albeit with 'sweet spots' of enhanced performance, notable in the top (C12) and bottom sections (C15). Tight gas reservoirs often do not produce at all from the initial vertical wells and normally require hydraulic fracturing or horizontal wells to produce effectively.

.. The results from this last test 'Test 3&4 combined' were adversely affected by the invasion of drilling mud into the lower pressured, upper intervals. Total mud losses while drilling the sidetrack were around 100 m3, and we estimate around 30-40 m3 has been produced back from this top interval so far. Had mud not invaded this zone it is likely the gas flow would have been much higher. Hydraulic fracturing is required to overcome the detrimental affects of the mud invasion.

.. The behavior of this last test is useful to interpret the test results from the old wells drilled in the 1970's. In particular in 'well 10' where the old logging data suggests gas saturations in the reservoir, but the well tests in intervals C12, 14, 15 and 16 all flowed only 'drilling mud and gas', resulting in this well being defined as outside the gas/water contact for the field (the field boundary). Well 10 is located 700 metres to the north of the present
field boundary and 337 metres deeper in the structure and it would establish a much deeper 'gas down to' depth of 3841 metres sub surface. The latest test data from Karl-101 suggests well 10 is probably within the gas field boundary and if verified this is likely to increase the
size of the Karlavskoye field significantly. The location of well 10 is illustrated in the reservoir maps contained in the Company's 51-101 reserves reports (http://www.transeuroenergy.com/s/ReserveReports.asp).


.. Fekete Associates Inc were retained by the Company to prepare preliminary estimates of future well performance based on hydraulic fracture models, using data obtained from Karl-101 as supplied by the Company. The model predictions indicate the Karl-101 well could deliver initial post frac production from 5 stimulated zones above 10 mmcf/d and sustained production after 2 years in the order of 3 to 4 mmcf/d, with cumulative production over this period in the range of 3.0 to 3.5
Bcf. The Company cautions that there is no certainty to these predictions and actual post frac performance may be higher or lower. 5 service companies, including 3 of the largest international service companies have indicated their interest in performing the fracturing operations on Karl-101 later this year and detailed engineering design activities are now ongoing. The Company is budgeting $3 million for the fracturing operations.

Follow on Plans:

.. The Company is now temporarily suspending the Karl-101 well for a re-entry 3rd Quarter  this year and will release Dafora Rig 2 as soon as possible.

.. Planning activities are underway to prepare for the hydraulic fracturing operations 3rd Quarter this year.

.. Discussions have commenced with government partners on the re-entry programme for hydraulic fracturing, for the installation of the production equipment and the tie in to the adjacent export pipeline. Discussions will commence on a 12 month gas sales contract to follow once the Frac operations are completed.

.. The Company will review the 'Statement of Reserves' for Karlavskoye with Fekete Associates Inc to include 'well 10' inside the field boundary. If accepted this will increase the size of the field substantially. The Company is investigating the potential to re-enter well 10 to re-test and hydraulically fracture the reservoir intervals C12 to C16.

.. The gas and liquids samples collected during testing will be analysed to investigate if oil might be producible at Karlavskoye and if exploration potential exists for oil in the immediate vicinity.

.. Planning will commence on a second well, Karl-102, with the intention of drilling through the C12-C16 intervals and down to 5000m to investigate the previously discovered deeper reservoirs in the A-18 and A-21 intervals. After testing the deeper targets with well will focus on production from the C12-C16 intervals. We hope to spud this well early in 2012.

Transeuro 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.  In addition, the Company holds a back-in option to Eaglewood Energy Inc.'s exploration licenses in Papua New Guinea.

On behalf of the Board of Directors
Aage Thoen, Chairman

For further information contact:       
                                        Chris McGillivray, IR, +1 604 728 0040
                                        David Parry, SVP, +1 604 681 3939
                                        Karen Jenssen, IR, +47 91 729787
                                        http://www.transeuroenergy.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the Oslo Bors accepts responsibility for the adequacy or accuracy of this release. When used herein, the term "boe" means barrels of oil equivalent on the basis of one boe being equal to one barrel of oil or NGLs or 6,000 cubic feet of natural gas (6 mcf: 1 bbl). Barrels of oil equivalent may be misleading, particularly if used in isolation. A
conversion ratio of six mcf of natural gas to one boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.  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.

=======================================================================
Copyright (c) 2011 TRANSEURO ENERGY CORP. (TSU)  All rights reserved.
For more information visit our website at http://www.transeuroenergy.com/ or send mailto:info@transeuroenergy.com
Message sent on Mon May 16, 2011 at 12:45:49 AM Pacific Time
=======================================================================
.