Decision on violation charge Transeuro Energy Corp.

Enquiries to: Ola Aamodt Enger/Angela Nygaard
Dir. line: +47 22 93 99 41/22 93 97 15
Our reference: 10/5785
Filing code: 725
Date: 28.06.2010

Reference is made to Finanstilsynet’s (The Financial Supervisory Authority of Norway) preliminary decision and notice of violation charge of 31 May 2010, cf the Norwegian Public Administration Act section 16.

As stated in the notice, the deadline for publication of the annual financial report is at the latest four months after the end of each financial year, cf the Norwegian Securities Trading Act (STA) section 5-5 first paragraph. Thus, the annual report for 2009 should have been made public within 30 April 2010. Public disclosure must be undertaken in accordance with STA section      5-12.

According to Oslo Børs’ “Newsweb”, Transeuro Energy Corp. (Transeuro) made its annual report for 2009 public 2 May 2010.

In the above-mentioned preliminary decision, Transeuro was given until 14 June 2010 to give comments. Finanstilsynet has until today not received any comments.

Finanstilsynet finds that the company has violated STA 5-5 first paragraph. The violation must have been committed wilfully or through negligence in order for Finanstilsynet to impose a violation charge. Finanstilsynet emphasizes that high level of due care is required by listed companies concerning their obligations to the market. Finanstilsynet is of the opinion that Transeuro acted negligent by not making the annual report for 2009 public within the deadline.

The size of the violation charge is linked to the market value of the company as of 1 January 2010. The minimum violation charge for all issuers of listed shares is normally NOK 100.000. This is principally in line with the previous practice of Oslo Børs.

When deciding the amount of the violation charge, Finanstilsynet takes into consideration that Transeuro failed to meet the deadlines for publication of the annual report for 2008 and for the quarterly report for the first quarter of 2009. Furthermore, Finanstilsynet also takes into account that Transeuro made its annual report for 2009 public before the Oslo Stock Exchange opened for trade again after 30 April 2010. After making a new assessment, Finanstilsynet finds to reduce the stipulated violation charge referred to in the preliminary decision 31 May 2010. Based on the above-mentioned and with legal basis in STA section 17-4 second paragraph and section 5-5 first paragraph, Finanstilsynet has adopted the following individual decision:

Transeuro Energy Corp. must pay a violation charge of NOK 65.000 – sixty five thousand Norwegian kroner- to the Norwegian Treasury.

Finanstilsynet emphasizes that any repeated violation of the deadline for financial reporting in the future, may result in a significantly higher violation charge.

Pursuant to the Norwegian Public Administration Act section 28, individual decisions may be appealed to the Ministry of Finance. The time limit for lodging an appeal shall be three weeks from the date on which notification of Finanstilsynet’s decision has reached the party concerned, cf. the Norwegian Public Administration Act section 29. The appeal must be sent directly to Finanstilsynet.

If Transeuro does not appeal the decision to the Ministry of Finance, the payment instruction regarding the violation charge is the following:

Finanstilsynet
P.O. Box 1187 Sentrum
N-0107 Oslo

Account number: 7694 05 09641

From abroad:
IBAN NO4976940509641
BIC: DNBANOKK

When carrying out the payment, please quote our reference number 10/5785.

 
On behalf of Finanstilsynet

Anne Merethe Bellamy
Deputy Director General

Siw-Mette Thomassen
        Head of Section