Transeuro Energy Corp. and Questerre Energy Corporation reports on the preliminary test results from the A-8 well at the Beaver River Field.

Three prospective intervals in the Nahanni formation identified on drilling logs were perforated earlier this month. Pre-stimulation there was a continuous dry gas flow to surface. The well was subsequently stimulated late Thursday evening with a 51 m3 acid squeeze.

Late Friday, during an 8-hour initial cleanup flow, the well flowed back the spent acid and cleaned up to rates in excess of 5 mmcf/d (833 boe/d) on a final choke size of 38/64'' and a flowing tubing pressure in excess of 8,000 kPa. During the flow period, 80 m3 of fluid was recovered which is in excess of the stimulation fluid used. This excess is likely formation water.

Separate pressure recorders were run with the bottom set of perforations isolated from the upper two sets of perforations. The well is currently shut-in to gather an initial reservoir pressure and pressure gradient between the perforation intervals. A production test with a full flow and buildup is planned to begin as soon as the drilling rig can be moved off the location. Subject to final results, Transeuro and Questerre have commenced plans to tie-in the well to the local gathering system.

Hal Hemmerich, President and Chief Executive Officer of Transeuro commented, " When we receive further data from the pressure recorders and a full production test, we will determine the impact of the acid squeeze on the flow rates of gas and water. The final production test will assist in determining what work can be done to improve on the stimulation procedures. The gathering and analysis of this data is estimated to take a few weeks."

Tags: Transeuro Energy Corp