(1888PressRelease)
May 28, 2008 - New York – Stockhouse reports in energy news yesterday, shares of Transeuro Energy Corp. (TSX-V: TSU) hit a 52-week high of 64 cents, before retreating to 49 cents at the close. The 12 cent (32.4%) increase came on volume of more than nine million shares.
The Vancouver-based global oil and gas company announced Monday that its Karlavskoye 101 ("Karl 101") well in Ukraine has been drilled to a depth of 3,480 meters with continued gas shows, and has intersected the C15 reservoir interval. A downhole surge test is currently being performed to confirm fluid type. Thus far gas has been produced to surface from the well. Photos are on www.transeuroenergy.com.
From the news release:
"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 540 meters.
"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.
"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 BOE). Under the terms of the Joint Activity Agreement with the local government partner 'Crymgeologiya', Transeuro has 72% of the profits 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."
On Friday, Stockhouse member "crazyinvestor" noted on the TSU Stockhouse Bullboard message board that shares had closed up 35% on Oslo’s Axess exchange.
"The s/p on the venture in most cases follows their pattern," he or she noted. "Huge potential here!"
Another member "Peak_Norway" provided a link to the Oslo Bors - NewsWeb by way of explaining the share price jump:
"It’s in Norwegian but I’ll try to translate it:
‘TranaTTS Marine ASAs Drilling Equipment division has entered a contract of approx. 90MNOK(17.75MCAD) through its subsidiary company Sense EDM(Canada) Ltd. in Edmonton for the delivery of one onshore rig.
‘The contract, with a customer in Ukraine, is a 125 ton rig-package. For the Drilling Equipment division, this is the first contract in Ukraine, which is a market with very good potential for growth. The company has earlier delivered equivalent rigs to other customers.’
"My thoughts: It's been speculated that TTS is delivering to TSU. We will know in a few days."
For more opinions from "Peak_Norway", visit
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=23158639&l=0&r=0&s=TSU&t=LIST
Stockhouse member "Addison1" offered a link to information about all of TSU’s sites, including Ukraine, also noting that Ukraine is the world’s biggest consumer of natural gas.
"Addision1" said: "The low price of imported gas from Russia actually costs a lot for Ukrainian economy. Almost 15 years have passed, but Ukrainian authorities have done nothing to slow the pace of this catastrophe, i.e. the volume of gas consumed by Ukraine.
"A quarter of Europe's gas supplies pass through Ukraine.
"According to the Oil and Gas Journal Ukraine has roughly 40 trillion cubic feet (Tcf) of natural gas reserves.
"Ukraine's major pipeline is that of which Russia uses and needs to supply all of its natural gas to the rest of Europe. Once Transeuro starts capturing the natural gas they would be able to sell it to a very large market, with Russia raising prices.
"Technologically, Ukraine is connected to major transit gas pipelines, including the Yamal-Europe pipeline, and could play a much more active role in providing safe and secure gas supplies to Europe."
"Peak_Norway" noted that 68 million shares of TSU were traded in Norway on Monday. "That's almost all the shares in TSU in Norway."
TSU ended the day in Oslo at 3,20NOK, up 48,15%, said "Peak_Norway". "Many Norwegian buyers are accumulating shares in Canada because of your "low" stock price over there compared to over here."
To follow Tuesday's discussion on the TSU Bullboard message board, visit http://www.stockhouse.com/Bullboards/SymbolThreadList.aspx?sv=2&s=TSU&t=LIST&f=1&l=25&c=0&r=0
For the original Stockhouse article with links and disclosure policy, visit
http://www.stockhouse.com/Community-News/2008/May/27/Energy-company-s-stock-jumps-on-drilling-results
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