Transeuro Energy Corp. (CVE:TSU) shares rose as Australia-based oil and gas explorer Aleator Energy (ASX:AWD) announced Monday a "significant" resource upgrade for the Povorotnoye gas field in the Ukraine, in which Transeuro holds a 10.8 per cent stake.
Transeuro's interest is in the joint activity agreement to develop the gas field.
Aleator also said that a drilling rig has been secured for the field for drilling in September.
The Povorotnoye gas field prospective resources have increased significantly, Aleator said, to 256 Bcf P50 gas-in-place in three gas reservoirs in the field - M-3 (both Upper and Lower) and M-4.
This compares to the earlier estimated resources of 61 Bcf gas-in-place in the company's February report.
Aleator, formerly named Golden State Resources, said in its statement that commercial production could start as soon as the middle of next year if the initial well is successful.
A gas plant with spare capacity and connections to a nearby gas main line is located 10 kilometres from the field, the joint venture partners noted.
Transeuro explores and produces crude oil, condensate and natural gas. It owns 100 per cent of a gas producing property in British Columbia, Canada and has interest in gas exploration and appraisal developments in Crimea, Ukraine.
The company's shares gained more than 16.6 per cent to 7 cents Monday.
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