Transeuro Provides Ukraine Update

Source: www.gulfoilandgas.com 8/12/2008, Location: Asia

Transeuro Energy provides an update on its activities in Ukraine. On the Karlavskoye 101 well the Company has drilled to the section TD at 3,553.5m, with a number of gas kicks being successfully controlled over the final 50 metres. Based on the available data a potential total gross gas column in the well of approximately 600m is interpreted. While drilling out of the bottom of the reservoir a high pressure water zone was encountered that has resulted in the drillpipe becoming stuck in the well. Operations are continuing to recover the drillpipe. Subject to successful operations it is then planned to run casing and conduct flow testing of the primary target.

The exploration and pilot production license for the Povorotnoye field has been extended for a further year, to June 2009. Drilling operations are planned to commence during Q3 2008. The well is expected to take six to nine months to drill. The drilling contractor will be the Ukrainian company 'Mirgorod', who have been working for some of the other foreign companies in Ukraine (such as Cadogan and JKX). Mirgorod were chosen following an audit of available Ukrainian contractors.

Transeuro and Rohol-Aufsuchungs Aktiengesellschaft (RAG) have appointed Neil Stewart as the Managing Director of Scythian Energy BV. (Scythian). The two companies will carry out operations in the Ukraine through Scythian. Mr. Stewart has managed operations in Ukraine for Transeuro over the last two years and will continue in the same capacity for Scythian. The parties have also appointed David Worrall as Chairman of the Scythian Supervisory Board.


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