Prep for ProductionFrom last week:
Transeuro Energy Corp. is pleased to issue the weekly update on its Ukraine operation as follows:
Logging operations have been completed successfully and the 7 inchcasing has been run to Total Depth ("TD"), cemented and logged. Atreport time today drill pipe is being run into the hole to clean outcement and pressure test in preparation for production testingoperations.
The open hole logs have identified the following:
• Up to 117 metres of 'reservoir section' in the main targets: theCretaceous Intervals C12; C13; C14; C15 and C16 from 3,110 to 3,510metres (wire line depth). The reservoir sections are low porosity,fractured carbonate rocks with average porosity calculated in the rangeof 4 - 6.5%.
• Gas saturations are calculated in 75 metres of 'reservoir section'with the remaining 42 metres showing ambiguous results, possibly due tothe high mud weights of 1.69 sg (specific gravity) used at the end ofdrilling 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 intervalswhere the rock is densely fractured, 'fracture zones' that correspond togas shows while drilling.
• These results are similar to the previous Karl 101 wellbore drilledin 2008 and are in line with expectations. The log results from theprevious Karl-101 wellbore were incorporated into the third partyreserves report, dated 31st December 2009.
• The upper Turonian interval was affected by the sidetrack drillingoperations and the high mud weights and no conclusive information wasobtained from the open hole logs.
The proposed testing program is as follows:
• The Company is planning 4 individual tests, with each test expectedto 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, thenflowed for 48 hours for the main flow period, then shut in for 48 hoursto obtain pressure information.
The testing program is subject to change depending on actual results.The Company will issue announcements as appropriate throughout thetesting period.
The President & CEO, David Worrall commented; "Drilling operationshave been completed successfully and the drilling risks are now behindus. The success of the cementing operation was particularly important sothat we did not plug up the fractures in the rock that have flowed gasthroughout the drilling operations. We are targeting these fracturesduring the testing and acidizing and we now look forward to the initialtest results expected in around one week".