Transeuro Energy Corp.

Transeuro Energy Corp.

January 05, 2011 03:01 ET

Drilling Begins in Ukraine on Large Gas/Condensate Field-Clarification of News

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 5, 2011) - Transeuro Energy Corp. (TSX VENTURE:TSU)(OSLO:TSU) ("Transeuro" or the "Company"), as previous released, is pleased to announce that drilling operations began on Karl-101 on Friday Dec 31st. Drilling of the sidetrack will take place through January with first results from logging expected at the end of January. Testing operations will follow in February.

At the request of IIROC, the Company hereby retracts the statement "…the well potential could be many times higher, in the range of 50-100 mmcf/d, with condensate production in the range of 2000-4000 barrels per day". This target was premature in the absence of actual recovery information. Certain other deficiencies have also been corrected.

Project Summary

  • The Karlavskoye field is proven by 9 wells that all produced gas and condensate. Third party estimates from Fekete Associates Inc. suggest nearly 0.5 Tcf (Trillion cubic feet) of gas in place (discovered resources) with additional condensate. Discovered resources are those quantities of oil and gas estimated 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.
  • The Karl-101 well was initially drilled in 2007/08 by Transeuro and data to 3500m was collected on the target reservoirs but a well control incident lead to the reservoir section being abandoned and the well was suspended in November 2008 at a depth of 2750m. Over 100 meters of net gas bearing reservoir was identified from logs and gas samples from 2800 - 3500m.
  • The Company is expecting to test 5 separate intervals with each targeting 5 mmcf/d (million cubic feet per day) per interval and a combined result over 20 mmcf/d and 1000 barrels per day of condensate, a total of 4500 boepd (barrels of oil equivalent per day) subject to confirmation of economic production from this well.

The Karlavskoye Field

The Karlavskoye field is the principal Ukraine asset and is located in Western Crimea. The main reservoirs were discovered in 1966 and proven with 9 wells that all produced gas and condensate to surface from multiple horizons in the Upper Cretaceous reservoirs from 2700m - 3500m. Wells have produced at good rates from all individual horizons, with the best results already indicating a commercial field:

5.3 mmcf/d (900 boepd) from the C12 reservoir in well 8. 

3.5 mmcf/d (600 boepd) from the C14 reservoir in well 12, 

4.2 mmcf/d (720 boepd) from the C15 reservoir in well 14 

The seismic and well data suggest the field is 10 km by 3 km in size. Independent third party 'Gas In Place' (discovered resources) has been estimated by Fekete Associates Inc. to be in the range of 160 - 854 Bcf (27-145 million boe) with a mean of 472 Bcf (80 million boe). The full reserves report is available at

Test Objectives

Given the evidence of commercial rates in the range of 3-5 mmcf/d from the old wells, Transeuro is targeting an overall cumulative test production rate of over 20 mmcf/d from the well. However, in the event that a network of open fractures is encountered in the reservoir rock either by the wellbore, or through the acid stimulation, then the well potential could be higher.

Commencement of Operations

The Company has begun operations to re-enter the well and to sidetrack from 2750m to 3500m and to test up to 5 intervals, depending on results. Drilling operations are expected to take 30 days followed by two weeks for testing of each interval. Transeuro has retained Dafora Drilling as the rig contractor and Integra Group as the IPM provider, both internationally recognized service companies.

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's properties are located in Canada, Armenia, and Ukraine. In addition, the Company owns shares in Eaglewood and holds a back-in option to their exploration licenses in Papua New Guinea.

On behalf of the Board of Directors

Aage Thoen, Chairman 

When used herein, the term "boe" means barrels of oil equivalent on the basis of one boe being equal to one barrel of oil or NGLs or 6,000 cubic feet of natural gas (6 mcf: 1 bbl). Barrels of oil equivalent may be misleading, particularly if used in isolation. A conversion ratio of six mcf of natural gas to one boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. 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.

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

Contact Information

  • Transeuro Energy Corp.
    Chris McGillivray
    +1 604 728 0040
    Transeuro Energy Corp.
    David Parry
    +1 604 681 3939
    Transeuro Energy Corp.
    Karen Jenssen
    +47 91 729787