Transeuro Energy: Ukraine Drills Into High Pressure Gas

Transeuro Energy Corp. issues a weekly update on its Ukraine operations.

Drilling has reached a depth of 3,332 metres in the C13 reservoir when the first of the anticipated pressure step increase was encountered and the well began to flow.

The well has been temporarily shut in to increase the mud weight to control the gas flow, before drilling operations resume.

Routine analysis of the gas composition while drilling continues to show the presence of C1 (methane), C2 (Ethane) and C3 (Propane), and also the C4 (Butane) and C5+ fractions that support the presence of liquid condensate in the gas.

Data from nearby wells previously drilled into these formations suggest a medium condensate yield in the range of 40-60 barrels per million cubic feet of gas at these depths.

Over the next week the Company expects to encounter the top C14 interval around 3,380 metres and drill to the ‘Total Depth’ (TD) of around 3,520 metres.

Further pressure step increases are anticipated based on the data from nearby wells.

Project Summary

* The Karlavskoye field is proven by 9 wells that all produced gas and condensate. Third party estimates from Fekete Associates suggest nearly 0.5 Tcf (Trillion cubic feet) of gas in place with additional condensate.

* 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).

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 3km in size. Independent third party ‘Gas In Place’ has been estimated by Fekete Associates to be in the range of 160 – 854 Bcf (27-145 million boe) with a mean of 472 Bcf (80 million boe).


Source:  Transeuro Energy, February 4, 2011;