Transeuro Completes Second Test at Ukraine Well

Transeuro Energy Corp. issues an update on its Ukraine operation as follows:

Flow testing of the second test interval of the previously announced 4 test programme on Karl-101 has been completed. The well was perforated underbalanced and flowed for 3 days before being shut in for a 48 hour pressure build up period. The stabilized flow rate was around 0.1 mmcf/d (3000m3/d) with traces of condensate liquid, giving a combined rate of approximately 17 barrels of oil equivalent per day (boepd). The maximum hourly rate recorded was 0.3 mmcf/d (8160 m3/d). No acid stimulation was performed on this interval.

The President & CEO, David Worrall commented;

“To conclude the evaluation of this interval, we will retrieve the perforating guns to confirm that all the explosive charges fired, and to download the memory pressure gauges. We will then continue with the testing programme on the upper intervals that represent around 55% of the overall reservoir including the best quality reservoir interval in the very top 30m that is expected to deliver the highest flow rates.

The low flow rates recorded in Test 2 suggest that there are no significant fractures in this interval however the results do confirm the presence of gas and condensate, and prove that gas recovery from this middle section of the reservoir is possible. The 2 completed tests have not achieved our target flow rates and suggest the lower reservoirs will require more aggressive well designs to recover the gas in place, possibly including horizontal wells, underbalanced drilling and/or fracturing technology. ”

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Source: Transeuro Energy, May 2, 2011;