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Wednesday, 14 November 2012
Transeuro Energy suspends operations at Karl-101 well in Ukraine
Transeuro Energy Corp. (CVE:TSU) says that it has suspended operations on its Karl-101 well in Ukraine, after failing to achieve a commercial gas rate from the lower intervals.
Prior to suspending operations, the well tested a production rate of approximately 5000 cubic metres per day of gas and 170 cubic metres per day of water.
The company is now reviewing the results and discussing the forward program with its government partner, it said.
These discussions include the abandonment of Karl-101, the possibility to continue with development of the Krasnapolianskoye field independent of Karl-101, and the objectives and well design for another well - 'Karl-102'.
The news comes after the company last month resumed work at Karl-101 after testing was suspended back in July due to unsuccessful attempts to close the C13 frackport to shut off water production.
Shares in the company plummeted more than 45 per cent to 3 cents this afternoon.
"We are disappointed with the results on Karl-101, which questions the commerciality of the Cenomanian intervals at the 101 well location," said president and CEO, David Worrall, in a statement Wednesday.
"The gas flows obtained so far do support a further review of the Karlavskoye structure, including the potential of the deeper Albion reservoirs and consideration of additional drilling."
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.
"We are preparing plans to finish construction of the gas plant, re-issuing the Krasnapolianskoye license that expires this month and renewing the Joint Activity Agreements ready for the next phase of activity," Worrall said.
Transeuro explores and produces crude oil, condensate and natural gas. It owns 100 per cent of a gas producing property located in British Columbia and has interests in gas exploration and appraisal developments in Crimea, Ukraine.
Earlier this month, it said it produced 1.59 million cubic metres of gas from its Beaver River gas field in the Liard basin in British Columbia, Canada in October.