Transeuro: First Test Completed at Ukraine Well

Transeuro updated on its Ukraine operation as follows:

Flow testing of the first test interval of the previously announced 4 test program on Karl-101 has been completed. The acid stimulation was performed as planned and the well opened to clean up for 8 hours when a gas leak occurred at surface that necessitated pumping drilling mud into the tubing to remove the pressure. The leak was fixed and flowing resumed for a 20 hour period, however the maximum hourly rate recorded was 2 million cubic feet (56,640 cubic meters) per day, with an average condensate yield of 45 barrels per million cubic feet, giving a maximum combined rate of 423 barrels of oil equivalent per day (boepd). The rate declined during the flow period and no stabilized flow rate was recorded.

The President & CEO, David Worrall commented, "The result of the acid stimulation was disappointing. We will retrieve the perforating guns to determine if all the explosive charges fired and then evaluate this interval."