Transeuro Energy Corp. Povorotnoye Farm out Agreements Signed

(via Thenewswire.ca)

Vancouver, Canada: - Transeuro Energy Corp. ("Transeuro" or
the "Company") announces that the Company has signed final
agreements (Framework Share Purchase Agreement and Management
Agreement) with Honoratus Investments ("Honoratus") a Cyprus
company established for the purpose of investing in the Ukraine
E&P sector. As part of the transaction Honoratus has been acquired
in full by Golden State Resources Ltd, (ASX:GDN),
(www.goldenstate.com.au) who have assumed all funding and operating
commitments of Honoratus under the farm-out. The main terms of the
farm-out are:

-Drilling by Honoratus of well one, to a depth of around 4000m,
commencing before June 30th 2012, and the fulfillment of other
investment commitments of the license. If a commercial discovery is
declared, Honoratus shall put the well into production.

-Conditional on a commercial discovery with well one, Honoratus will
drill a second well, commencing before May 15th 2016 when the 5 year
license term expires. If the second well is not started by the end of
the license period the share interest in East Crimea BV shall revert
to 50/50%.

-Transeuro will transfer ownership to Honoratus of 85% of 'East Crimea
BV' the holding company that holds title to the Joint Activity
Agreement for the Povorotnoye gas field in East Crimea.

-Staged cash payments by Honoratus of up to US$1.5 million to cover
the cover past expenses incurred on the license by Transeuro: with
$500,000 due on or before Closing of the transaction; $500,000 on
spudding of well one and $500,000 on the commencement of testing
operations on well one.

-Completion of the transaction is scheduled for 31 January 2012.

The Company's CEO, Mr David Worrall, commented: "We are pleased
to be able to complete the negotiations with Honoratus and look
forward to a successful joint venture as they quickly prepare for
drilling operations in Crimea. Farming out the commitments at
Povorotnoye will allow Transeuro to focus on development of the
Karlavskoye field and following success of the planned hydraulic
fracturing operations, to expand the asset base to other similar
discovered gas fields."

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. In addition, the Company holds a back-in option to Eaglewood
Energy Inc.'s exploration licenses in Papua New Guinea.

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

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