Transeuro Energy Corp. ("Transeuro"
"Company") announces the Company is proceeding with the issue of a
60-90 million senior secured convertible bond with maturity in May 2015
and is currently negotiating a second funding facility of approximately
CAD 20 million. The main terms of the secured convertible bond are an
annual interest rate at 12% and a conversion price at NOK 0.85.
The minimum convertible bond size of NOK 60 million has already been
subscribed for by a limited number of investors and the Company has
extended the subscription period to 5 pm Norwegian time on Wednesday
May 2nd to allow other interested parties the opportunity to
The received subscriptions for the contemplated convertible bond
financing are subject to another financing facility currently being
negotiated with one other financial institution for approximately CAD
20 million. This other financing is expected to be formally approved
within one week.
The proceeds are for general corporate purposes and to ensure the
company can develop up to 7 of its existing wells through to production
over the next 12 months, including 3 wells in Ukraine and up to 4 wells
in Canada. The planned activities include rig work-overs, hydraulic
fracturing, acidizing and installation of the necessary production
facilities and flow lines. The target is to increase production rates
and sales revenues and to reduce the break even production cost in
Canada. Following success the Company would anticipate the transfer of
some discovered and contingent resources into reserves.
Fondsfinans ASA of Norway (www.fondsfinans.com) has
been appointed as
sole manager of the contemplated secured convertible bond issue.
ABOUT THE COMPANY
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 owns 100% of a gas
producing property located in British Columbia, Canada and has interest
in gas exploration and appraisal developments in Crimea, Ukraine.
On behalf of the Board of Directors
Aage Thoen, Chairman