October 14, 2008
Transeuro’s Liard Basin Shale Well Flows at 10 Mmcf/D
Transeuro Energy Corp. ("Transeuro", or the "Company") and Questerre Energy Corporation ("Questerre" symbol:QEC) is pleased to announce today their first successful test on the deeper shales in the Liard Basin, in Northeast British Columbia.
The program consisted of a series of mini-fracs and high pressure acid stimulations in the existing d-a64-K (A5) well, with the objective of evaluating the rock properties of the Liard shales and to identify prospective intervals for a future fracture stimulation programme.
After a minor stimulation, the A5 well flowed sweet dry natural gas at a stabilized rate of 10 mmcf/d (approximately 1750 boepd) over a three day test with a wellhead pressure of 3,000 psi. The A-5 well is now being tied into the local gathering system and production is anticipated before the end of October pending regulatory approval.
The tested interval in A5 is a brittle layer, rich in dolomite at the top of a thick sequence of organic rich shale. The appraisal strategy for the shale is to target the more brittle rock intervals that have higher carbonate and silica content and are therefore expected to respond favourably to stimulation. The brittle rocks contain free gas and may serve as a pathway for the shale gas to enter the well. The long-term production test is intended to establish how much gas can be recovered from the surrounding shale through the stimulated layer.
David Worrall, Chief Operating Officer of Transeuro commented, "Industry experience from other shale gas fields shows that targeting the more brittle layers of rock, as we have here, can be very effective in draining gas from the surrounding shales. These initial flowrates are very strong and indicate an AOF ("Absolute Open hole Flow rate") of approximately 40 mmcf/d (approximately 7000 boepd). We expect the rate to decline initially and are confident it will stabilize at commercial levels."
A-5 is the third well to be put on production from the shale/siltstone intervals at Beaver River. These intervals are collectively more than 2,000m thick and for classification purposes have been separated into three major intervals. Discovered resource is estimated at over 1 Tcf of gas in place per section based on independent analysis by Netherland, Sewell & Associates Inc. The two other producing wells, A7 and A2, produce from the upper and middle intervals respectively. Transeuro has a 50% interest in 35 sections with take away capacity in place.
Transeuro Energy Corp. is involved in the acquisition of petroleum and natural gas rights, the exploration for, and development and production of crude oil, condensate and natural gas. The Company's properties are located in Canada, Armenia, Ukraine and, through majority ownership in Eaglewood Energy Inc, in Papua New Guinea.