Transeuro Energy Corp.: Armenia Drilling Update

Dec 18, 2007 00:15 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 18, 2007) - Transeuro Energy Corp. ("Transeuro", or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) reported today on the drilling of the Kamir 1 well in Armenia. The Kamir 1 is located 65 kilometers west of Yerevan, not far from the Turkish border.

Karmir 1 was drilled to the programmed total depth of 2,346m. A potential hydrocarbon gas zone was encountered between 950m and 1,150m with elevated values of methane, ethane, propane and butane identified on the mud log. Elevated gas levels were also intersected below 2,300m but only contained carbon dioxide.

The forward plan is to plug back the deeper zone, run wire line logs and based on these results test the hydrocarbon potential of the shallow zone.

Subject to a successful test, a distribution and marketing network of pipelines for a fast and economical way to monetize the potential discovery is present within 3km. Armenia is a net importer of natural gas, imports were 1.685 billion cubic meter in 2005.

Transeuro Energy Corp. is involved in the acquisition of petroleum and natural gas rights, the exploration for, and development and production of crude oil, condensate and natural gas. The Company's properties are located in Canada, Armenia and Ukraine.

On behalf of the Board of Directors

Harold Hemmerich, President and CEO

This press release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from the targeted results. The Company relies upon litigation protection for forward looking statements.

Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.


The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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Armenia to Close Nuclear Plant

29 Nov. 2007

YEREVAN, Armenia (AP) — Armenia approved a plan Thursday to shut down its lone nuclear power plant, following years of pressure from foreign nations concerned about its Soviet-era design and safety.

The government gave no date for closing the Medzamor reactor, located about 20 miles west of the capital, Yerevan. The 27-year-old plant, which supplies nearly half the country's electricity, halted operations after a 1988 earthquake but was restarted during an energy shortage in 1995.

Since then, Armenia has been under constant pressure to close the plant due to safety concerns and possible design flaws. The European Union has pledged $295 million in loans and other assistance to help close it.

The shutdown could cost up to $280 million, Energy Minister Armen Movsisian said.

Armenian officials have long refused to shut it without another source of electricity.

Last week, the United States said it would fund a preliminary feasibility study on building a new nuclear plant.

President Robert Kocharian has said that building a new, 1,000-megawatt plant — double that of Medzamor — would cost more than $3 billion.

In 2004, Russia's state-run electricity grid operator, RAO Unified Energy Systems, assumed financial control of Medzamor in a deal struck to relieve Armenia's massive debts to Russian energy suppliers. UES and Armenia now share management of the plant.

Note: Above are excerpts from the article. The full article appears here. Clarifications and comments by me are contained in {}. Deletions are marked by [...]. The bold emphasis is mine.

Armenia hopes to be an energy exporter

September 14, 2007, 12:17
Russia Today

Armenia is becoming a regional leader in the gas distribution and storage market, as it brings its economy into the 21st century.

Armenia’s economy has changed significantly over the last decade and it's now becoming an increasingly attractive location for foreign investment. Its capital, Yerevan, is currently undergoing a construction boom with new shopping centres and housing complexes springing up across the city.

The spotlight is currently on ArmRusGasprom, the gas monopoly, a company with close ties to Russia's Gazprom, which has been operating Armenia's gas sector since 1997. It receives gas from Russia, delivered via Georgia, and is investing in new technology and capacity.

"Over the last five years gas consumption in Armenia has risen fivefold. We are planning to invest about $US 650 million in new gas projects, with the most promising projects being the modernization of gas storage and the construction of an alternative pipeline," said Karen Karapetyan, the Chairman of ArmRusGasprom.

Currently Russia is the only supplier of natural gas to the country, but it will soon have access to Iranian supplies through the recently opened Armenia-Iran pipeline, which is owned by Gazprom. With the additional capacity coming in, attention is turning to the country's storage facilities.

Nelson Sarkisian, the head of Armenia’s Abuvianskaya gas storage facility is looking forward to a major modernization programme, with ArmRusGasprom planning to invest up to $US 2.5 million and to boost capacity to 120 million cubic meters in the near future.

He has been working there since 1983 and says that since that time the facility has not been modernized. This gas storage facility is unique for Armenia as it can store gas in the salt in the earth. However it is expected to be modernized soon using the latest European technology. Gaz du France is providing technical support to its Armenian counterparts on this project.

Armenia is still receiving gas from Russia for $US 110 per thousand cubic meters, and the new capacity from Iran should ensure continued low prices.

ArmRusGasprom is looking to diversify its activities with projects in oil refining and the electricity sector.

“With the construction of the oil pipeline being built from Iran to the south of Armenia and of the oil refinery in the south of Armenia, ArmRusGasprom can become a very important player on the oil market,” pointed out Sevak Sarukhanyan, Deputy Director of Noravank in Yerevan.

The company also plans to invest up to $US 170 million in electricity production with an eye to exporting energy to its regional neighbours.

Note: Above are excerpts from the article. The full article appears here. Clarifications and comments by me are contained in {}. Deletions are marked by [...]. The bold emphasis is mine.

New Armenian nuclear power plant to cost $2 billion

RIA Novosti, Russia - Sep 7, 2007

YEREVAN, September 7 (RIA Novosti) - A new nuclear power plant (NPP) being built in Armenia on the site of an existing facility will end up costing about $2 billion, Armen Movsisyan, the Armenian energy minister, told parliament Friday.

"The project's feasibility study is being carried out by Armenia, Russia, the U.S. and the International Atomic Energy Agency [IAEA]. The old NPP is to be rebuilt within four and a half years," the minister said.

Movsisyan said the construction of the new plant, located in the town of Metsamor, near the Turkish border, would require a complex refit, including the installation of seismic safeguards.

He added that Armenia must have a permanent source of nuclear power, and that the Armenian NPP must be operational until alternative sources are found.

Movsisyan said that thanks to the Armenian government efforts "many foreign countries now understand that Armenia must have a NPP."

"Only a new Armenian NPP can become an alternative to the one now in use," he said.

Specialists believe the existing Armenian NPP will remain operational until 2016. It was commissioned in 1976, and includes one VVER-440 Soviet-designed reactor that generates 40-50% of Armenia's electricity.

Note: Above are excerpts from the article. The full article appears here. Clarifications and comments by me are contained in {}. Deletions are marked by [...]. The bold emphasis is mine.

Russia and Armenia to build NPP

New Europe, Belgium
28 June 2007 - Issue : 736

A Russian-Armenian group working on new nuclear power infrastructure for Armenia recently met in Yerevan to discuss security guarantees for the country's existing nuclear power station and cooperation in constructing new units, Interfax reported.
The Armenian side elaborated on their plans to develop their energy grid, while Russian representatives presented project details for a new nuclear power plant.

During an April visit to Yerevan, the head of Russia's Federal Atomic Energy Agency, Sergey Kiriyenko, stated that Russia was ready to provide both technical and financial assistance in constructing a new nuclear power station for Armenia. According to Regnum, the new 1,000 MW (megawatt) station will cost USD two billion to build. USD 240 million will be needed to decommission Armenia's aging Metsamor nuclear power plant, which is slated for closure by 2016. The plant, built in 1975, was initially closed following the devastating 1988 earthquake. One of two units, with a 400 MW capacity, was reactivated in 1995. Metsamor produces 40 percent of Armenia's electricity.

Note: Above are excerpts from the article. The full article appears here. Clarifications and comments by me are contained in {}. Deletions are marked by [...]. The bold emphasis is mine.

Armenia not going to enrich uranium on its territory

30.05.2007
PanARMENIAN.Net

Works will be carried out jointly with Rosatom in southern Armenia to confirm forecasts about uranium resources in the near future, RA President Robert Kocharian said at May 30 sitting of the security council on atomic energy.

Armenia is not going to enrich uranium on its territory. “We prefer to join the idea of formation of international centers on providing services of nuclear fuel cycle under IAEA. Agreement with the Russian federation has been already achieved,” the RA leader said.

During his recent visit to Yerevan Rostatom head Sergey Kiriyenko said uranium resources in Armenia can reach 60 thousand tons. Armenia itself needs 400 tons of nuclear fuel. The republic is supposed to enrich fuel in the international nuclear center in Angarsk. The founders of the center are Russia and Kazakhstan, IA Regnum reports.

! Reproduction in full or in part is prohibited without reference to «PanARMENIAN.Net».

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Turkish Atomic Energy Agency: No leakage from Armenia’s Metsamor reactor

09.05.2007
Today’s Zaman Ankara

The Turkish Atomic Energy Agency (TAEK) has said that there has been no radioactive leakage from the Armenian Metsamor Nuclear Reactor, located on the border between Turkey and Armenia.

“None of the radioactivity analyses or RESAI station measurements done up until now have uncovered radioactivity or radiation levels above normal,” said TAEK officials. The body was responding to an earlier article by Today’s Zaman that indicated the plant was experiencing radioactive leakage. “Your newspaper’s April 11, 2007 edition had an article entitled ‘Data shows increased radioactive leakage from Metsamor’. This article contained news which indicated that data taken from 13 TAEK warning stations around Iğdir and Kars showed an increase in radioactive leakage from the Metsamor reactor,” TAEK stated, before going on to refute the claims.
The Armenian Metsamor Nuclear Reactor, which is composed of two WWER-440-230 units, each with power levels of 408 mega watts, is located not far from the capital Yerevan, 16 kilometers from the Turkish border. The Armenian government decided to open the second unit in the reactor in 1993, due to high energy needs, and thus the second unit was started up in 1995. The Metsamor reactor provides up to 40 percent of Armenia’s electricity needs, and is predicted to continue doing so until 2016. Since Yerevan decided upgrade the reactor TAEK has been involved in following related developments and taking the necessary precautions from the Turkish side.

An important part of taking necessary actions in the wake of a possible nuclear power plant accident is the timely access to correct information after the accident. Along these lines, Turkey is a supporter of all international accords on early warning in the case of nuclear reactor accidents. One of TAEK’s actions has been to set up a national early warning system, RESA, with regards to nuclear reactors in neighboring countries. This system works 24-hours-a-day, and with the help of 78 stations set up throughout Turkey, takes constant measurements of radiation levels. When airborne gamma radiation rises above threshold levels, this system automatically warns the TAEK Crisis Center in Ankara. Of these 78 stations, 14 are grouped in the region that lies near the Metsamor reactor.

In order to keep close watch over the Turkish regions that could theoretically be affected by radiation or radioactivity from the Metsamor reactor, TAEK along with various ministries, institutes and foundations, has formed a tight infrastructure of control in the area. Kafkas University, located in the Kars province, has a laboratory established in 1995 that takes environmental measurements and carries out analyses of the situation in the region. This laboratory also carries out sample analyses of local soil, plant, and food. Both the Environment and Forestry Ministry and TAEK take soil and underground water samples from four Turkish cities near the Metsamor reactor and test them every six months for warning signs of increased radiation and radioactivity. In 2006, these tests were enlarged to cover 81 different towns and cities, as well as to include plant and food samples.

Note: Above are excerpts from the article. The full article appears here. Clarifications and comments by me are contained in {}. Deletions are marked by [...]. The bold emphasis is mine.

Russia ready to fund new nuclear power plant in Armenia

Wednesday, May 2, 2007, #081 (1348)
The Messenger
By M. Alkhazashvili
(Translated by Diana Dundua)

According to the Russian news agency Regnum, the Armenian government announced that an agreement has been reached between Russia and Armenia about Russia funding the construction of a new nuclear power plant in Armenia. In return, Russia will become the co-owner of the plant.

Armenia says it must build a new nuclear power plant to meet the country's electricity demands. The current plant at Metsamor is severely outdated. Closing down the existing station will cost USD 240 million. The deadline is 2016, but under the European Neighbourhood Policy plan Armenia signed, they agreed to close the power plant in a shorter period of time.

The existing station provides Armenia with approximately half of its electricity needs. It consists of two reactors which have a total capacity of 815 MWe.

Note: Above are excerpts from the article. The full article appears here. Clarifications and comments by me are contained in {}. Deletions are marked by [...]. The bold emphasis is mine.

South Caucasus refinery boom

Tuesday, March 27, 2007
The Messenger
By M. Alkhazashvili(Translated by Diana Dundua)

An oil refinery boom has begun in the South Caucasus. Most of the refineries will be constructed in Georgia and Armenia - places that currently do not have a significant amount of their own oil.

Two oil refineries will be built in Georgia. One will be constructed in Kulevi by SOCAR, the state oil company of Azerbaijan, with a capacity of processing 5-10 million tons of oil annually. The Kulevi oil terminal should open soon and as early as this year it is expected to process as much as 10 million barrels of oil.

A second refinery will be built in Batumi and it will refine crude oil exported from Kazakhstan. President of KazMunayGaz Uzakbai Karabalin and the Chairman of Batumi Oil Terminal Jan Bonde Nielsen signed an agreement on building joint owned oil refineries. The refinery's capacity will be 5-7 million tons annually.

A similar facility will be built in Armenia to process Iranian oil. Its potential capacity could reach seven million tons a year. A minimum of USD 1.7 billion will be spent on its construction. An additional USD 1 billion will be spent for the necessary transport infrastructure.

According to the Armenian Minister of Foreign Affairs Vardan Oskanian, creation of the oil refineries and implementation of a railway project between Iran and Armenia will help strengthen the energy security of the country, reports the newspaper Rezonansi.

Note: Above are excerpts from the article. The full article appears here. Clarifications and comments by me are contained in {}. Deletions are marked by [...]. The bold emphasis is mine.

Kocharyan: Iran's help to Armenian nation not to be forgotten

March 19, 2007
IRNA

Armenian President Robert Kocharyan on Monday referred to the commissioning of Iran-Armenia gasline as a historical event opening a new page in bilateral relations.

The remark was made at a press conference after Iran-Armenia gas pipeline was officially commissioned at the common borders of the two countries and his talks with President Mahmoud Ahmadinejad.

Kocharyan said that ever since its independence, his country has been facing various problems such as siege, war and energy crisis, adding that such a bitter memory is now on the verge of oblivion.

Turning to the regularly coordinated growing trend of bilateral ties, he said that Iran's assistance to Armenia in the early years after his country's independence will never be forgotten and thanked Iranians for their kind attention.

He said that there was nothing on Iran-Armenia common border 15 years ago, except a few rows of barbed wire symbolizing the ex-Soviet Union's rule.

"Neither did the border on which I welcomed President Ahmadinejad exist at that time. This is while today 600,000 tons of goods are annually exchanged between the two states," he added.

Kocharyan underlined that no energy was exchanged between Iran and Armenia 10 years ago, but that today it can be said that their third power transmission line will soon be commissioned.

Pointing to the growing trend of Iran-Armenia cooperation as a model, he thanked his Iranian counterpart for efforts towards such a close cooperation.

In response to a question about expansion of cooperation between the two states, he said that bilateral ties can be divided into political and trade sections.

He referred to the level of political relations as excellent, adding, "This helps us regulate our ties with other countries in such a way as to avoid causing any sensitivity."

The Armenian president pointed to the bright prospect of Iran-Armenia economic development, saying that the economic projects due to be drawn up aim to strengthen relations between the two nations and lead to more tangible outcomes.


Note: Above are excerpts from the article. The full article appears here. Clarifications and comments by me are contained in {}. Deletions are marked by [...]. The bold emphasis is mine.

Iran and Armenia inaugurated the natural gas pipeline

19 March 2007
HULIQ

Officials of Iran Gas Company, Iranian and Armenian contractors and representatives of the two countries' media were among those who attended the ceremony.

Ahmadinejad and Kocharyan are to proceed to the Armenian Customs Office building to sign agreements relative to the supply of Iranian natural gas.

The natural gas pipeline has a total length of 140 kilometers, 100 kilometers of which is in Iranian territory and 40 kilometers in Armenian territory. It will transfer 10 million cubic meters of Iranian natural gas to Armenia per day in its initial phase.

Test operations on the project have been conducted. The project will be ready for delivery to Armenia within the next few months.

The pipeline has an approximate cost of USD 120 million, 85 percent of which was financed by the Export Development Bank of Iran (EDBI) and the remaining 15 percent put up by Yerevan.

The natural gas pipeline was due to be completed in 930 days but construction was fast-tracked due to its importance and the pipeline completed in 650 days.

Inauguration of the gas pipeline will allow transfer of 400 million cubic meters of Iranian gas to Armenia per year during the first phase of the project, this figure later to be increased to 2.5 billion cubic meters per year.

The Armenian president had high praises for Iranian engineers and workers who made this natural gas pipeline a reality. - Islamic Republic News Agency


Note: Above are excerpts from the article. The full article appears here. Clarifications and comments by me are contained in {}. Deletions are marked by [...]. The bold emphasis is mine.

Iran-Armenia pipeline to start work Monday

Fri, 16 Mar 2007
Earth Times

YEREVAN, Armenia, March 16 The Iran-Armenia gas pipeline will begin functioning next Monday, Armenian news reports said Friday.

The Iranian and Armenian presidents will attend the opening ceremony, Sahak Abrahamyan, director of High-Voltage Electric Grids, told Armenpress agency.


Twenty-five miles of the 90-mile pipeline have been built. In the first stage, 300 million to 400 million cubic meters of gas will be transported. Eventually, the pipeline will be able to pump about 2.5 billion cu.m. of gas, the report said.

Work on the $30 million pipeline will end in mid-2008.

Initially, Armenia will receive 1.08 million cu.m. per year from Iran, a figure that is expected to double by 2019, according to the U.S. Energy Information Administration, the Department of Energy's data arm. In exchange, Armenia will provide Iran with 3 kilowatts of electricity per cubic meter of gas.

The pipeline allows Armenia to access Iran's and Turkmenistan's gas exports without having to use Caspian Sea export routes, the EIA says.

Copyright 2007 by UPI

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Tehran says Armenia is not ready to receive gas from Iran

01/08/2007
Regnum

Iran is ready to start gas delivery to Armenia at any time, but the Armenian side is not ready to receive the gas. Spokesman for the Iran-Armenia gas pipeline project Mohammed Reza said the Iranian side accomplished all necessary works and installed necessary equipment. “The Armenian side asked for a meeting in late March to discuss the project and issues of energy supply from Armenia to Iran,” the Iranian spokesman said, assuring that Iran fulfilled all its obligations on construction of the pipeline and is ready to start gas supply to Armenia at any time, Radio Liberty informs.

Contractor of the pipeline construction, Armenian High-Voltage Electric Networks Company, announced earlier that the completion of the construction works in the Armenian section of the gas pipeline was scheduled for December 20, 2006, after that the gas was supposed to come to Armenia, however, after Armenia’s Foreign Minister Vardan Oskanyan visited Iran on December 17, the Armenian and Iranian parties announced that the time of commissioning the pipeline was postponed till spring 2007.

The gas pipeline that connects Iran and Armenia has a diameter of 700 mm, its planned annual capacity is 1.2 billion cubic meters of gas. Initially, amount of the gas sent to Armenia will be 1.1 billion cubic meters, since 2019 it will reach 2.3 billion cubic meters. The contract was signed for 20 years. To reach the planned amount, the Armenian side is planned to lay some more 197 km of the pipe. For each cubic meter of the Iranian gas Armenia is supposed to return 3 kwh of electric energy.

Permanent news address: www.regnum.ru/english/763746.html

Note: Above are excerpts from the article. The full article appears here. Clarifications and comments by me are contained in {}. Deletions are marked by [...]. The bold emphasis is mine.