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     NEWS RELEASE -- UKRAINE TEST '3&4' COMPLETED
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Vancouver, Canada: - Transeuro Energy Corp. ("Transeuro" or the "Company") issues an update on its Ukraine operations as follows:

Flow testing of the final interval 'Test 3&4 combined' on Karl-101 has been completed. The well was perforated underbalanced and flowed for 5 days before being shut in for a 2 day pressure build up period and it is now being temporarily suspended for re-entry in 3rd quarter this year. The perforating guns have been recovered to surface and confirmed that all guns fired.

The well produced gas with traces of condensate and black oil, and a considerable volume of drilling mud that had invaded into the top reservoir during drilling of the deeper, higher pressured intervals. Gas flow rates up to 0.4 mmcf/d (11,000 m3/d) were recorded while
drilling mud was being produced and the well was 'slugging'. After 5 days flowing the drilling mud was still present, the gas rate had declined to a continuous flow of approximately 1,000 m3/d and no formation water was observed.

The President & CEO, David Worrall commented on the results of the final test:

"We have demonstrated that the Karlavskoye field contains a 400 metre thickness of producible hydrocarbons and it has the potential to be significantly larger than previously estimated. We interpret the recorded gas flow rates and reservoir data as quite satisfactory now that we view Karlavskoye as a tight gas field and we intend to continue with development of the field, starting by hydraulically fracture of Karl-101 in 3rd quarter this year and to shortly thereafter put the
well onto production with a target gas sales rate in the range of 5 mmcf/d (140,000 m3/d)." 

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 approximately 30-40 m3 was produced back from this top interval during the flow period. Had mud not invaded this zone it is likely the gas flow would have been much higher.

The production of traces of black oil during testing verifies the indications of liquid hydrocarbons observed while drilling the C12 and in the C13 (cutting fluorescence). The oil that occurred in Karl 101 correlates to oil discovered in nearby fields at this depth.

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).

The Company has retained the Moscow office of consulting company 'AGR Petroleum Services (http://www.agr.com/Home/) to review the testing operations and to comment on the development strategies for the field. A one page summary of their review is available on the Transeuro
website.

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 ofthis 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.

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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 12:39:51 AM Pacific Time
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