Transeuro Wins Okay to Move Forward with Ukrainian Project
Transeuro Energy Corp. ("Transeuro" or the "Company") has received the government approvals required to proceed with drilling on the Karlavskoye field in Crimea where the rig construction is nearing completion and is awaiting final ratification of the approvals to build the Gas Treatment Plant ("GTP").
The Company has mobilized a drilling rig to the Karlavskoye gas condensate field in the autonomous Republic of Crimea in the Ukraine. The rig will drill the first modern appraisal well on the Karlavskoye structure, that is delineated by eighteen Russian wells drilled in the 1960's, 1970's and 1980's and by 2D seismic. The majority of these wells produced gas and condensate, but at rates that were considered at the time to be uneconomic. The existing wireline log, core and well test data suggests a large structure of approximately 10 x 3 kilometers with multiple fractured carbonate reservoirs. The primary target is the upper cretaceous sequence from the C12 horizon at 3,200 meters, down to the C16 at 3,700 meters. A secondary target is the lower cretaceous Albian horizons from the A18 horizon at 3,700 meters, down to the A21 at around 5,000 meters. Transeuro will drill the well using modern equipment, including low invasion drilling muds to minimize formation damage. Zones of interest will be perforated and acidized with modern treatment chemicals to stimulate production to economic rates. The Company expects to spud the Karlavskoye 101 well in or before the first quarter of 2007.
Transeuro's progress in Ukraine has been impacted through delays in receiving the necessary government approvals. The Company has now received all the approvals required to proceed with its drilling projects in Ukraine. The modern drilling equipment required for the Karlavskoye 101 well is now being organized for delivery to Crimea. The majority of approvals for the land use application required to build the Gas Treatment Plant have also been completed and the Company is awaiting ratification of this application by the parliament in the autonomous Republic of Crimea. The company still cautions readers that maintaining the schedule outlined above is dependent on a timely response from the Ukraine Government, Crimea Parliament and other regulatory bodies.
Transeuro Energy Corp. 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, Papua New Guinea and Ukraine.