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Thursday, 29 November 2012
Transeuro Energy enters negotiations for Ukraine licenses, updates on proposed financing
Calgary-based Transeuro Energy announced Thursday that it has launched negotiations with the Ukraine government to amend their joint activity agreement on some licenses, and also provided an update on its proposed financing.
In the first release Thursday, the oil and gas explorer said it has entered negotiations related to the Karlavskoye and Krasnapolianskoye licenses. The Krasnapolianskoye license expired on November 21, and its government partner is in the process of renewing the license.
The current negotiations also include discussions over the construction of a gas treatment plant (GTP) and tie-in of wells on the Krasnapolianskoye license, Transeuro said, as well as the objectives and well design for the Karl-102 well on Karlavskoye and other terms.
The parties said they have agreed to abandon the Karl-101 well, following the suspension of operations at the well after failing to achieve a commercial gas rate from the lower intervals earlier this month.
In the short term, the oil and gas company is changing its focus to the adjacent Krasnapolianskoye field and the two shallow wells that are available for production, with the goal of establishing first gas sales next year.
In a separate statement Thursday, Transeuro said it will no longer be proceeding with its proposed shelf prospectus and exemptive relief application in connection with the share purchase agreement with YA Global Master Fund SPV, for which terms were revised in October.
The company is now seeking approval from the TSX Venture Exchange to the shelf purchase agreement, which could require further amendments.