Mr. Aage Thoen reports

NEWS RELEASE - PURCHASE OF QUESTERRE BEAVER RIVER

Transeuro Energy Corp. has signed a letter of intent with Questerre Energy Corp. to acquire the remaining 50-per-cent interest in the Beaver River field in British Columbia and to extinguish approximately $4.3-million of payables owed to Questerre in exchange for 40 million shares in Transeuro, equal to approximately 9.5 per cent of the Company. At closing, Transeuro will hold 100 per cent of the Beaver River field.

David Worrall, president and chief executive officer, commented: "We are pleased to now have a 100-per-cent interest in the Beaver River field and the emerging Besa River shale gas play. This acquisition unblocks the potential at Beaver River and clears the way for continuing the appraisal program as it better positions the asset to attract a farm-in partner. Further, it allows Questerre to retain an interest in the field to participate in the upside possible from the Besa River shales and adds exposure for Questerre to the potential high-impact gas assets that Transeuro owns in the Ukraine."

The transaction will involve the purchase by Transeuro of all the outstanding shares in Questerre Beaver River Inc., a wholly owned subsidiary of Questerre Energy Corp. Transeuro currently holds a 50-per-cent interest in the Beaver River field through a wholly owned subsidiary. Closing is subject to final agreements between the parties and all necessary regulatory approvals.

Aage Thoen, chairman, stated: "We have a long and co-operative working relationship with Questerre, and we welcome their involvement in Transeuro as our largest single shareholder. Together with the recent debenture repayments, this transaction eliminates the remaining major liabilities of Transeuro and brings the debt restructuring to a successful conclusion. The management will now focus on developing its gas assets in Canada and Ukraine. Planning is under way to complete the Karl-101 well in 2010 in co-operation with our Ukraine state partners."