Transeuro Energy Corp.

Transeuro Energy Corp.

September 29, 2009 01:27 ET

Transeuro Energy Corp.: Renewal of Karlavskoye License in Ukraine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 29, 2009) - Transeuro Energy Corp. ("Transeuro" or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) announces that the license for the Karlavskoye gas condensate field in Crimea has been extended by the Ukraine government for a further 5 year term.

The Karlavskoye license is considered the principal asset for Transeuro in Ukraine and is located in the Northwest of Crimea near Chornomorske. The deeper Cretaceous reservoirs were discovered in the 1960's and 9 wells were drilled that identified 6 target intervals. All wells produced gas at rates of up to 3 to 5 million cubic feet per day from individual intervals. Third party resource estimates calculate a mean gas in place of 474 Bcf, with condensate yields expected in the range of 40 to 80 barrels per million cubic feet of gas. The main export pipeline is located on the license. Additional deeper targets have also been identified from previous wells but have never been tested. Transeuro has a Joint Activity Agreement (JAA) with the state subsidiary, "Crymgeologia," who holds the 5-year license for exploration and pilot production of the field. Transeuro provides investment and expertise and receives 72% of the profits of the Joint Activity.

Following final settlement of the RAG dispute on September 24th 2009, the Company is now planning the resumption of drilling operations on the Karl-101 well to drill down to the C15 interval at 3500m and to then test and complete the well as a producer. The well is intended to test the extent of the Cretaceous reservoirs: T1 and C12 to C16. In 2008, the well was drilled to the base of the C16 reservoir at 3553m when a well control incident ultimately lead to the reservoir section being abandoned and a cement plug was set in the casing at 2751m. Prior to this event, electric logs were obtained down into the C15 at 3480m and suggest a most likely 99m of net pay over the 5 target intervals.

David Worrall, President and CEO of Transeuro commented, "Over the last few months our discussions with the government have been very constructive. The energy situation in Ukraine has focused the industry on the need to accelerate domestic gas production and consequently the business environment for Transeuro has improved considerably. Industrial gas prices within Ukraine are currently above the European spot price with strong forward supply side and demand side support that underpins the business opportunity. We are addressing the operational problems that have previously impacted drilling performance and expect to resume drilling on the Karl-101 well in 2010."

Aage Thoen, Chairman of Transeuro commented, "The Board is very pleased that the company recovery plan is making headway in a timely manner. The Company's main focus is to now prepare, plan, and to resume drilling operations within agreed cost and time estimates, together with our Ukraine partners."

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, and Ukraine. In addition, the Company owns shares in Eaglewood Energy Inc. and holds a back-in option to their exploration licenses in Papua New Guinea.

On behalf of the Board of Directors

Aage Thoen, Chairman

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.

The TSX Venture Exchange and Oslo Bors have not reviewed, and do not accept responsibility for the adequacy or accuracy of the content of this news release.

Contact Information

  • Transeuro Energy Corp.
    David Parry
    +1 604 6813939
    Transeuro Energy Corp.
    Karen Jenssen
    +47 91 729787