Mr. Aage Thoen reports

DEBT REPAYMENT

Transeuro Energy Corp. has repaid a total of $1,525,000 of its $2-million outstanding Series A debentures.

The Series A debentures, which mature in November, 2010, are secured by 6,142,860 shares of Eaglewood Energy Inc. The holders of the remaining $475,000 of Series A debentures have entered into an arrangement with the company whereby they agreed to defer repayment for periods of either 30 or 60 days thereby allowing for an early release of the Eaglewood security to the company.

The company, in consideration of the deferred repayment and the release of the 6,142,860 Eaglewood shares security, agreed to pledge 3,071,430 of these shares to the holders of the remaining $475,000 Series A debentures until such time as they have been repaid. These 3,071,430 Eaglewood shares are subject to a separate prior escrow agreement which provides that they will be released on Oct. 11, 2010.

The repayment of the Series A debentures is one additional step in restructuring its balance sheet. The repayment also provides the Company with more working capital flexibility as a result of the early release of the Eaglewood shares.