TRANSEUROENERGY
500 ` 900 West Hastings Street
Vancouver, B.C. V6C 1E5

Transeuro and Questerre Commence Liard Shale Gas Test
August 27, 2008 TSX-V/ Oslo Axess: TSU

Vancouver, Canada: – Transeuro Energy Corp. (`Transeuro’, or the
`Company’) and Questerre Energy Corporation (`Questerre’) announced
today that joint operations are under way to test the deeper shale’s
in the Liard basin, northeast British Columbia, Canada. These shale’s
are Mississippian in age and are located approximately 100 km to the
east of the Horn River shale play.

There are two existing producing tight gas/shale wells (A2 and A7)
which Transeuro and Questerre both have 50% ownership and that
Questerre has operated for over two years with relatively low decline
rates. Compression was recently added to A2 with very promising
initial results. Production from the A2 increased to over 4.0mmcf per
day which is near its original peak production rate of 4.5mmcf per
day. The continued good production performance of these shallower
wells together with recent work by Questerre and Transeuro indicate
that there isalso strong potential for the deeper Devonian
shale’s. Gas in place numbers for this area for the Mississippian
siltstone/shale sequence are confirmed at over 1 tcf per section
(discovered resource) based on independent work by Nederland, Sewel &
Associates Inc. Transeuro has a 50% interest in 35 sections with take
away capacity in place.

The current operation is a re -entry of the A5 well. Three intervals
will be perforated and minor stimulations will be conducted to
evaluate reservoir and rock mechanical properties prior to an inflow
test. The gross thickness of these prospective deeper shale’s that are
confirmed with good gas shows are in excess of 500m and these tests
will assist in identifying the net productive reservoir intervals. If
the results of the inflow tests are promising, a full stimulation will
be carried out in a future operation to test for commercial flow
rates.

Michael Binnion, President of Questerre commented "We have great
control of land and infrastructure in this area. Expertise gained from
our Quebec shale play has allowed us to re-evaluate our past results
. We believe we have been able to correlate the results to particular
shale qualities which greatly encourage us that a predictive model can
be created. The very high gas in place numbers and promising
production results from our two wells in the Liard shale’s make this
test very interesting."

Hal Hemmerich, President of Transeuro commented `We are excited about
the prospects of the Liard basin shale and we see the similarities to
the Horn River shale. The license has six existing well bores, the
surface infrastructure and the export line that all add significant
commercial advantage. We also see the value in the continuation of the
development of the upper shale’s which have produced strongly over the
past two years and believe this work program will highlight the shale
commerciality in the Liard Basin.’

This resource is not classified as reserves, contingent resources or
unrecoverable resources at this time until determination of the
appropriate completion and stimulation techniques and the determining
of areas of maximum natural fracturing to maximize recovery of this
discovered resource. There is no certainty that it will be
economically viable or technically feasible to produce any portion of
the reported discovered resource.

Discovered resources are defined in the COGE Handbook, `Discovered
resources are those quantities of oil and gasestimated on a given date
to be remaining in, plus those quantities already produced from, known
accumulations. Discovered resources are divided into economic and
uneconomic categories, with the estimated future recoverable portion
classified as reserves and contingent resources, respectively."

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

On behalf of the Board of Directors
`Harold Hemmerich’ President and CEO

For further information contact:
David Parry – Vancouver, Canada Karen O. Jenssen ` Oslo, Norway
+1 (604) 681 3939 Phone + 47 917 29 787

kjenssen@transeuroenergy.com

The TSX Venture Exchange has not reviewed, and does not accept
responsibility for the adequacy or accuracy of the content of this
news release. This press release does not constitute an offer to sell
or solicitation of an offer to sell any of the securities in th e
United States.

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.

Barrel of oil equivalent (`boe’) amounts may be misleading,
particularly if used in isolation. A boe conversion ratio has been
calculated using a conversion rate of six thousand cubic feet of
natural gas to one barrel and is based on an energy equivalent
conversion method application at the burner tip and does not
necessarily represent an economic value equivalent at the wellhead.