Transeuro Energy Corp. announced that the Company has received the license for the Povorotnoye gas field in East Crimea, renewed for a five year period until May 14th 2016.
The License is issued to Crymgeologia, with whom Transeuro has a Joint Activity Agreement (JAA) through its Ukraine subsidiary Pivdenspetsbud. As previously announced, the Company is in the process of farming out to Honoratus Investments an 85% interest in East Crimea BV, the company holding title to the Joint Activity Agreement for the Povorotnoye gas field, in return for drilling 2 wells to around 4000m and 2D seismic. Transeuro and Honoratus are proceeding with detailed due diligence and preparation of the necessary agreements, as well as preparations for drilling the Pov-104 well in 2012.
Now that the dates for the Rights Issues have been confirmed the Company expects to have funds available for the previously announced hydraulic fracturing of Karl-101 at the end of December. All the necessary equipment has been manufactured with the first items arriving at the well location before the end of November. Operations to re-enter the well and install the necessary down hole equipment in the well are therefore expected to resume in mid January, with the hydraulic fracturing occurring in February. The exact timing of the fracturing operations is subject to normal operations conditions, specifically the availability of equipment and weather.
[mappress]
LNG World News Staff, November 24, 2011; Image: Transeuro