Transeuro Energy Corp. provides an update of operations at the Karlavskoye 101 (Karl 101) well in Ukraine. The well has been drilled to a depth of 3,480m with continued gas shows, and has intersected the C15 reservoir interval. As per Ukraine regulations a downhole surge test is currently being performed to confirm fluid type. Thus far gas has been produced to surface from the well.

The C15 is the fifth reservoir interval intersected by the Karl 101 well with up to three more reservoir intervals still to be drilled. The top interval, the Turonian was found at 2,940m, the C12 at 3,100m, C13 at 3,216m, C14 at 3,380m and C15 at 3,435m. The first downhole surge test with the well at 3,314m produced gas to surface from the Turonian, C12 and C13 intervals. Gas shows have been seen in each reservoir, and logs obtained over each interval indicate a gross gas bearing interval to date of 540m.

Following completion of the surge test the Company plans to continue drilling to the base of the next reservoir target interval, the C16 at approximately 3,550m, and plans to conduct an openhole flowtest in order to further evaluate the reservoirs and the commerciality of the well. Test equipment is being mobilized to site for this purpose.

The 'discovered resources' attributed to the Karlavskoye field by Fekete Associates Inc. under the Canadian 51-101 reserves reporting standards has increased to a mean estimate of 474 billion cubic feet of gas (85 million barrels of oil equivalent). Under the terms of the Joint Activity Agreement with the local government partner 'Crymgeologiya', Transeuro has 72% of the profits derived from the development of the Karlavskoye field. Upon closing of the JVA with RAG (www.rohoel.at) of Austria, Transeuro will hold 36% and RAG 36% of the profits.

Tags: Transeuro Energy Corp.