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Drilling update in Ukraine and Armenia

Tuesday, Canadian Transeuro Energy Corp. said it provided updates on the drilling operations in Ukraine and Armenia.

In Ukraine, the intermediate section of the Karlavskoye 101 well has been successfully drilled to a depth of 2934 meter and the rig is preparing to run casing prior to drilling the main section. Significant gas shows were identified in the intermediate section with up to 11% gas by volume in the drilling fluid. The well is expected to encounter the Turonian formation at a depth of around 3000 meter, which has the potential to be oil bearing, followed by the 5 primary target intervals of the Cenomain formation, which are expected from 3200 meter to the planned total well depth of around 4200 meter. Also in Ukraine, the company has commenced construction of the rig-site to drill the Povorotnoye 104 well in East Crimea, on the Kerch Peninsula. The company expects to spud the well in the H1 of 2008. The well is targeting the Maykop III and Maykop IV reservoirs, which are anticipated at a depth of 3900 meter.

In Armenia, the company has suspended operations on the Karmir 1 well following logging operations. The logs indicated low gas saturations. No testing operations are planned at this time and the company is running casing and suspending the well. Additional logging and evaluation will be planned for later in 2008 to reassess the gas saturations and decide if the well will be completed or abandoned.

David Worrall, Chief Operating Officer, commented “The drilling results to date in Ukraine are encouraging as the 9 old wells in the Karlavskoye field that were drilled from the 1960’s to the 1980’s also encountered gas in the intermediate section and all went on to produce gas to surface from the main targets, making Karl-101 more of a development/appraisal well than a conventional exploration project. Seeing the gas at this location gives us yet more confidence that the main target reservoirs will contain commercial hydrocarbons.”

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 in Papua New Guinea through majority ownership in Eaglewood Energy Inc. (