povorotnoyes - previous owner was upbeat

Thanks Wally, now look what youve done....given me more work :)

After some more research this evening. I have formed an opinion that the previous owner of Povorotyoye was upbeat about its potential.

Everyone has complained about the information from GDN Management, but most of the information we have, has been obtaind from Transeuro Energy's Prospectus for 2011. With some follow on details added.

Please see here for their 2011 prospectus and your full reading. http://www.transeuroenergy.com/i/pdf/2011_Prospectus.pdf

For a quick view, you can go to pages 56 and 59-67.

An overview is they wanted to drill Pov, but their financial position, other committments where to much for them. Also, they were let down by a Farm In partner (Co called RAG) prior to getting the drilling started at Pov.

They also had even better targets which they focussed on, and are now looking to put into production shorty. So it looks like it was a matter of one-or-the-other.

First good sign:

GDN (AWT) have provided a p50 estimate of 61BCF, where Transeuro's median (p50 estimate was 96BCF) in 2011 with a P10 of 155BCF.

Exert1:
Gross (100%)
Discovered Resource
In-Place Volumes

Definition1:
Gross (100%) Discovered Resources are those (100%) quantities of oil and gas estimated on a given date to be
contained in known accumulations, but have yet to establish commerciality. There is no certainty that it will be
commercially viable to produce any portion of the resources.

Exert2: (From same table as above)
Povorotnoye (mmcf)
Low 51,145
Median 96,597
High 155,545
Mean 100,723

Definition2: Aggregate Probability

Low estimate represents P90 value. There is a 90% probability that a greater or equal quantity may be present and a
10% probability that a lesser quantity may be present.

Median estimate represents P50 value. There is a 50% probability that a greater or equal quantity may be present and
a 50% probability that a lesser quantity may be present.

High estimate represents P10 value. There is a 10% probability that a greater or equal quantity may be present and a
90% probability that a lesser quantity may be present.

Mean is an arithmetic of the Low, Median and High values.

Exert3:
Prospectus Commentary:
Povorotnoye
The Povorotnoye license in Eastern Crimea, covers 26,000 acres (gross and net acres) (105 km2). The Povorotnoye field is 8.5
by 2.5 km in size with the gas bearing horizons believed to be located at a depth of approximately 3,800 metres. The field is
delineated by 2D seismic and by seven appraisal wells drilled in the late 1980’s that confirmed gas in the Maykop M3 and M4
reservoir intervals. Two wells produced commercial gas rates to surface, however all the wells were abandoned and the field
was not put in to production. Drill planning was completed by the Company and operations to prepare the drilling unit
commenced in 2008, but were suspended when RAG withdrew from the joint venture. The deep well is planned to test the
Maykop III and IV intervals previously appraised in the 1970s and 1980s.

The Company recently announced a farm in to the Povorotnoye field and now expects to spud a well, Pov-in early 2012. The
farm in involves the transfer of an 85% interest in the holding company ‘East Crimea BV’, in return for a commitment to drill
one well to 4000m, starting before the end of 2011 and if a commercial test rate is achieved, to put the well into production.
Then to drill a second well, Pov-105 before the end of the renewed license period otherwise the interest in East Crimea BV
will revert to 50/50%.
The Pov-104 well is targeting the Maykop III and the Maykop IV reservoirs which are anticipated at a depth of 3,900m. Two
adjacent old wells #1 and #2 drilled on the Povorotnoye field reported gas test rates of 5 mmcf/d and 17 mmcf/d, respectively.
These wells are located some 500m on either side of the planned Pov-104 well location. The field is located within 3km of the main gas line in Eastern Crimea which was completed in early 2002. Licensing of the land to build a gas processing plant is underway. Following a successful test the Company intends to produce the well into the adjacent export pipeline to determine long term production performance. If successful a field development is envisaged included around 6 vertical wells to produce
for 5-8 years.

Key notes:
Transeuro entended to drill Povorotnoye at the start of 2012.

Drilling was conducted in the 1970's and 1980's.

It was commercial. (I am assuming here, using todays prices, and not the 1970's or 1980's prices), which would explain Wallys earlier post today even further. (and my research)

Let down by their Farm In Partner.

Now, I am happy with the information we have recieved from GDN todate regarding Povorotnoye.

Recommend a full read, from the url above to ensure I havnt been selective wearing my newly painted rose colour glasses :)

Plase DYOR, and make your own decisions. This is shared for the purpose of sharing information only, and is not subject to any recommendation to buy or sell.