RE: News... ??? Any Guesses on what this means sho16th May 2011 TSX-V/Oslo Axess: TSU
Vancouver, Canada: - Transeuro Energy Corp.
("Transeuro" or the "Company") issues an update on
its Ukraine operations as follows:
Flow testing of the final interval 'Test 3&4
combined' on Karl-101 has been completed. The well
was perforated underbalanced and flowed for 5 days
before being shut in for a 2 day pressure build up
period and it is now being temporarily suspended for
re-entry in 3rd quarter this year. The perforating
guns have been recovered to surface and confirmed
that all guns fired.
The well produced gas with traces of condensate and
black oil, and a considerable volume of drilling mud
that had invaded into the top reservoir during
drilling of the deeper, higher pressured intervals.
Gas flow rates up to 0.4 mmcf/d (11,000 m3/d) were
recorded while drilling mud was being produced and
the well was 'slugging'. After 5 days flowing the
drilling mud was still present, the gas rate had
declined to a continuous flow of approximately 1,000
m3/d and no formation water was observed.
The President & CEO, David Worrall commented on the
results of the final test:
"We have demonstrated that the Karlavskoye field
contains a 400 metre thickness of producible
hydrocarbons and it has the potential to be
significantly larger than previously estimated. We
interpret the recorded gas flow rates and reservoir
data as quite satisfactory now that we view
Karlavskoye as a tight gas field and we intend to
continue with development of the field, starting by
hydraulically fracture of Karl-101 in 3rd quarter
this year and to shortly thereafter put the well onto
production with a target gas sales rate in the range
of 5 mmcf/d (140,000 m3/d)."
The results from this last test 'Test 3&4 combined'
were adversely affected by the invasion of drilling
mud into the lower pressured, upper intervals. Total
mud losses while drilling the sidetrack were around
100 m3, and approximately 30-40 m3 was produced back
from this top interval during the flow period. Had
mud not invaded this zone it is likely the gas flow
would have been much higher.
The production of traces of black oil during testing
verifies the indications of liquid hydrocarbons
observed while drilling the C12 and in the C13
(cutting fluorescence). The oil that occurred in Karl
101 correlates to oil discovered in nearby fields at
this depth
The behavior of this last test is useful to interpret
the test results from the old wells drilled in the
1970's. In particular in 'well 10' where the old
logging data suggests gas saturations in the
reservoir, but the well tests in intervals C12, 14,
15 and 16 all flowed only 'drilling mud and gas',
resulting in this well being defined as outside the
gas/water contact for the field (the field boundary).
Well 10 is located 700 metres to the north of the
present field boundary and 337 metres deeper in the
structure and it would establish a much deeper 'gas
down to' depth of 3841 metres sub surface. The latest
test data from Karl-101 suggests well 10 is probably
within the gas field boundary and if verified this is
likely to increase the size of the Karlavskoye field
significantly. The location of well 10 is illustrated
in the reservoir maps contained in the Company's 51-
101 reserves reports
(https://www.transeuroenergy.com/s/ReserveReports.asp).