LNG Energy Encounters Gas Finds in Bulgaria

Canadian exploration company LNG Energy has announced that it has encountered gas at its Peshtene R-11 well in Bulgaria.

The well, which was drilled to 3,190 metres, has shown numerous gas finds in the Etropole formation argillite, with methane, ethane and propane found.  R-11 is drilled under a farm-out agreement with TransAtlantic Worldwide, a wholly owned subsidiary of TransAtlantic Petroleum.

"Petrophysical analysis of the Etropole formation indicates net pay of 114 meters, with an average porosity of 6 per cent and water saturation of 48 per cent," a statement from the company said.

The find will now be tested and analysed by Core Laboratories in the first quarter of 2012. The data retrieved from the well will be analysed for reservoir rock properties, geochemical analysis and rock mechanics. LNG Energy says the results of the evaluation will inform the production programme for the well.

Based on the data recovered so far, Direct Petroleum Bulgaria, a subsidiary of TransAtlantic Petroleum, has now applied to the Bulgarian government for a production concession, the Stefanetz Concession. This concession is due to cover an area of up to 1,600 sq. kilometres for a term of up to 35 years.

The Peshtene R-11 well is located on the A-Lovech exploration licence and is located nearby to the Chiren Gas Field and TransAtlantic's Deventci R1 discovery well 36 kms to the east.

"We are excited with the very positive gas shows and data obtained in the Peshtene," Dave Afseth, President and CEO of LNG said. "We look forward to reviewing the results of the core analyses that will enable us to design and implement an appropriate stimulation to flow test both the Peshtene and Starogard (Poland) wells."