Transeuro Energy Corp.

Transeuro Energy Corp.

March 07, 2011 06:00 ET

Transeuro Energy Corp.: Ukraine Preparing for Production Test

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 7, 2011) - Transeuro Energy Corp. ("Transeuro" or the "Company")(TSX VENTURE:TSU)(OSLO:TSU) is pleased to issue the weekly update on its Ukraine operation as follows:

Logging operations have been completed successfully and the 7 inch casing has been run to Total Depth ("TD"), cemented and logged. At report time today drill pipe is being run into the hole to clean out cement and pressure test in preparation for production testing operations.

The open hole logs have identified the following:

  • Up to 117 metres of 'reservoir section' in the main targets: the Cretaceous Intervals C12; C13; C14; C15 and C16 from 3,110 to 3,510 metres (wire line depth). The reservoir sections are low porosity, fractured carbonate rocks with average porosity calculated in the range of 4 - 6.5%.
  • Gas saturations are calculated in 75 metres of 'reservoir section' with the remaining 42 metres showing ambiguous results, possibly due to the high mud weights of 1.69 sg (specific gravity) used at the end of drilling operations.
  • No obvious water intervals have been observed throughout the main targets from 3,110 to 3,510 metres.
  • In addition to the reservoir sections, there are numerous intervals where the rock is densely fractured, 'fracture zones' that correspond to gas shows while drilling.
  • These results are similar to the previous Karl 101 wellbore drilled in 2008 and are in line with expectations. The log results from the previous Karl-101 wellbore were incorporated into the third party reserves report, dated 31st December 2009.
  • The upper Turonian interval was affected by the sidetrack drilling operations and the high mud weights and no conclusive information was obtained from the open hole logs.

The proposed testing program is as follows:

  • The Company is planning 4 individual tests, with each test expected to take around 2 weeks, covering the following Cretaceous Intervals:

    • Test 1 - C16 and lower C15
    • Test 2 – C15
    • Test 3 – C13 and C14
    • Test 4 – C12

  • Each test will perforate around 40 to 50 metres covering both 'reservoir section' and 'fracture zones'.

  • The well will be flowed for around 12 hours to determine a 'pre-acidizing' rate, then stimulated with hydrochloric acid, then flowed for 48 hours for the main flow period, then shut in for 48 hours to obtain pressure information.

The testing program is subject to change depending on actual results. The Company will issue announcements as appropriate throughout the testing period.

The President & CEO, David Worrall commented; "Drilling operations have been completed successfully and the drilling risks are now behind us. The success of the cementing operation was particularly important so that we did not plug up the fractures in the rock that have flowed gas throughout the drilling operations. We are targeting these fractures during the testing and acidizing and we now look forward to the initial test results expected in around one week".

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 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 

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