Transeuro Energy Readies Itself for Ukrainian Fracking

Transeuro Energy Corp has announced that it has completed preparations on schedule to begin fracking operations on the Karlavskoye field in Ukraine.

The company estimates that hydraulic fracture activity will begin early next month once the necessary chemicals and equipment has been brought to Ukraine from Romania. The well will be located on the Karlavskoye field, a field with estimated resources of 472 billion cubic feet.

Eight packers and five "FracPorts" have been installed across five intervals, the company says, the C12, C13, C14, C15 and C16 intervals. These intervals run from 3,100-3,500 metres in depth.

Three and a half inch tubing has been run, Transeuro says, and the Christmas tree re-installed in preparation for the arrival of the frack pumps and associated equipment. No further down hole intervention is required before the company begins pumping operations, it said.

Earlier testing, undertaken in 2011, has shown a stable flow rate of 16,000 cubic metres a day from the intervals.

The company says it intends to "create individual 'propped' fractures" in each of the five intervals,. 1,000 cubic metres of water and 300 tonnes of synthetic proppant will be used across the intervals.

Transeuro will now dismantle the rig to ready it to be moved to the Povorotnoye field in East Crimea, Ukraine. The company will begin drilling of its first well on that field following a recent farm out of the asset. Transeuro completed this farm out in February, granting Honoratus Investments, a wholly owned subsidiary of Golden State Resources, an 85 per cent stake in the field. 

Through the terms of this farm out agreement, Honoratus will pay Transeuro $500,000 once the first well is spudded, in addition to $500,000 already paid on completion of the deal. This well is expected to be spudded by the end of June. Another $500,000 will be paid once production begins on the well.