Transeuro Energy said that three prospective intervals in the Nahanni formation identified on drilling logs were perforated earlier in January 2008. Pre-stimulation there was a continuous dry gas flow to surface. The well was subsequently stimulated with a 51 cubic meter acid squeeze.

Following that, during an eight-hour initial cleanup flow, the well flowed back the spent acid and cleaned up to rates in excess of five million cubic feet per day and a flowing tubing pressure in excess of 8,000kPa. The company said that, during the flow period, 80 cubic meters of fluid was recovered which is in excess of the stimulation fluid used. This excess is likely formation water. Separate pressure recorders were run with the bottom set of perforations isolated from the upper two sets of perforations.

The well is currently shut-in to gather an initial reservoir pressure and pressure gradient between the perforation intervals. A production test with a full flow and buildup is planned to begin as soon as the drilling rig can be moved off the location. Subject to final results, Transeuro and Questerre have commenced plans to tie-in the well to the local gathering system.

Hal Hemmerich, president and CEO of Transeuro, said: When we receive further data from the pressure recorders and a full production test, we will determine the impact of the acid squeeze on the flow rates of gas and water. The final production test will assist in determining what work can be done to improve on the stimulation procedures. The gathering and analysis of this data is estimated to take a few weeks.