Transeuro Energy Corp.: Financing Update

09.05.2012  |  The Newswire

(via Thenewswire.ca)

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 |9th May 2012|TSX-V/Oslo Axess: TSU|
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Calgary, Canada: - Transeuro Energy Corp. ("Transeuro" or
the "Company") announces an update on the proposed financing
previously announced on April 30th. The senior secured convertible
bond subscription period was completed on May 4th with settlement
scheduled for May 22nd. The final terms of the secured convertible
bond is an amount of NOK 60 million (approximately CAD 10.4 million),
annual interest at 12% and a conversion price at NOK 0.85
(approximately CAD 0.146). The bond is secured against the shares of
Transeuro Beaver River Inc, the Company subsidiary holding title to
50% of the Beaver River field in British Columbia, Canada.

The Company is finalising a further facility with a US-based
Alternative Investment Manager including a Loan Agreement for up to
CAD 5 million, and a Share Purchase Agreement (SPA) for up to NOK 100
million (approximately CAD 17.2 million). The Loan Agreement and SPA
are subject to definitive documents and are non-binding until such
documents are negotiated and executed and there is no certainty that
the transactions will be consummated. Currently, under the proposed
terms of the Loan Agreement, Transeuro can receive up to CAD 5 million
over a period of 24 months, which shall be advanced in tranches. It is
anticipated that the loan will be unsecured and pay annual interest at
10%. The Company will issue 1 million share purchase warrants with
each $1million drawn from the Loan Agreement, with the exercise price
the greater of either CAD 0.146 or a 50% premium to the closing price
on the date the loan is executed. Pursuant to the proposed terms of
the SPA, the Company has the discretion to withdraw funds of up to NOK
100 million over a period of 36 months and at the request of the
Company the Investment Manager will, subject to a number of
conditions, purchase ordinary shares at a discount of 5% to the
forward volume weighted average share price during a 40 day forward
pricing period. Upon execution of the SPA, the Company will prepare
and file a Shelf Prospectus in Canada to facilitate the issuance of
new shares under the SPA and will announce each individual drawdown.

The Company has received conditional approval from the TSX Venture
Exchange for all three facilities and is proceeding with final
agreements as the facilities described above are each dependent on
closing of the other.

Aage Thoen, Chairman of Transeuro Energy Corp. commented "This
structure of three mutually supporting financing agreements provides a
combination of debt at very competitive rates and equity through
progressive share issuances, that will provide the capital required to
develop our existing wells and possible new wells through to
production and revenue. The SPA will act as a discretionary source of
equity funding to support operating activities and for asset or
corporate acquisitions. The funding structure covers our short and
long term needs and widens our strategic options. It is envisaged that
any new share issuance will occur after the results of the Ukraine
Fracking operations and then periodically as determined by the
Company.

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

For further information contact: Darren Moulds, IR, +1 403 705 1919

Karen Jenssen, IR, +47 91729787

http://www.transeuroenergy.com

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
nor the Oslo Axess accepts responsibility for the adequacy or accuracy
of this release. 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.

This press release contains "forward-looking information"
which may include, but is not limited to, statements with respect to
our operations. Such forward-looking statements reflect our current
views with respect to future events and are subject to certain risks,
uncertainties and assumptions. See our Annual Information Form for a
description of risks and uncertainties relevant to our business,
including our exploration and development activities. Test production
rates may vary from sustained production rates when developing a well
or a deposit. The commerciality of any discovery can be affected by
many factors including product prices, operating costs, capital costs,
government take and sustained production levels and ultimate recovery
of hydrocarbons. Hydrocarbon indications from drilling or wireline log
data do not necessarily mean that mobile hydrocarbons are present in
the formation or can be produced.

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