May 2 (Reuters) - Shares of petroleum and natural gas producer Transeuro Energy Corp plunged as much as 47 percent on Monday morning after the company said testing at its Ukraine property failed to achieve targeted flow rates of gas production.
Transeuro said the second test recorded a maximum flow rate of 0.3 million cubic feet per day (mmcf/d).
The second test acheieved a stable flow rate of 0.1 mmcf/d of gas, down from the 0.5 mmcf/d achieved in the first test.
“The low flow rates recorded in Test 2 suggest that there are no significant fractures in this interval,” Chief Executive David Worrall said in a statement.
In reservoirs, fractures are caused by applying hydraulic pressure to allow oil and gas to move into the well bore.
Worrall said gas recovery from the section tested on the well was possible, but may require additional well designs.
“The two completed tests have not achieved our target flow rates and suggest the lower reservoirs will require more aggressive well designs to recover the gas in place,” he said.
The tests are part of a four-test program on the Karl-101 well drilled to assess the reservoir at the company’s Karlavskoye gas condensate field in Ukraine.
Shares of the Vancouver, British Columbia-based Transeuro fell to 10 Canadian cents, before inching up to 11 Canadian cents, down 42 percent, in morning trade on Monday on the Toronto Venture Exchange.
The stock was the third-most actively traded stock on the exchange, with over 1.75 millions shares chanigng hands. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Joyjeet Das)