Falcon Oil & Gas Provides Operations Update for Hungarian Gas Project
March 23 2006 - 7:31AM
PR Newswire (US)
BUDAPEST, Hungary, March 23 /PRNewswire-FirstCall/ -- Falcon Oil
& Gas Ltd. (TSXV: FO) provided an operations update from the
first three wells in its drilling program in southeast Hungary.
Pusztaszer-1 Well The Pusztaszer-1 well (P-1) was drilled on the
Tisza License with the Crosco 403 rig on the flanks of the Mako
Trough. The primary objective of the well was to test the
northwestern extent of the potential basin-centered gas
accumulation (BCGA). The P-1 well was drilled on a structure
identified from 3D seismic about 45 kilometers north of the
historic Hod-1 well. This well reached total depth of 3900 meters
on February 16, 2006 and subsequent study of the logs indicates
that the prospective sections in the Szolnok and Endrod formations
are over 100 meters in thickness with moderate to good porosity.
Further, the prospective sections appear to be overpressured,
saturated with gas and showed no signs of moveable water. Mako-6
Well At the Mako-6 well location on the Mako License, the Crosco
801 rig has reached a measured depth of 4310 meters. This depth
corresponds to a pre-determined, intermediate logging and casing
point in the Mako-6 well program. Based on a preliminary
interpretation of the geological, engineering and petrophysical
data available to this point in the drilling program, Falcon
believes that the top of the Szolnok formation was encountered at a
depth of 3425 meters and that the Szolnok formation extends over a
gross interval of at least 900 meters. Further, mudlogging
equipment recorded significant gas shows from numerous intervals
with gas compositions ranging from methane (C1) through pentane
(C5). Gustavson Associates personnel conducted a preliminary
interpretation of the logs and reported to Falcon management that a
significant section of gas appears to have been encountered already
in the Szolnok tight sands, which display an average porosity of 9%
with peaks up to 12%. The net sand content is about 60% and the
logs show no indications of moveable water. Further evaluation,
fracturing and testing will be required to assess the economic
viability of this sand section. Accordingly, Falcon's President,
CEO and Chairman, Marc A. Bruner announced today that a decision
has been made to run the intermediate casing in the Mako-6 well,
and proceed with drilling to the planned depth of 6000 meters. Mr.
Bruner stated, "We are very pleased with the logs, gas shows and
other data from this thick section of the Szolnok formation. But
these are only intermediate results and the program at Mako-6 is
now to run and cement an intermediate string of casing to this
depth and then to continue on drilling through the rest of the
Szolnok formation and into the deeper Endrod formation. We were
fortunate to encounter both the Szolnok and Endrod formations in
our first well at Pusztaszer-1 and we now look forward to testing
this concept at the Mako-6 well." Szekkutas-1 Well The Crosco 403
rig has now been moved onto the Szekkutas-1 (S-1) location, and
this well was spudded on March 18, 2006. After five days of
drilling, the well has reached a measured depth of 991 meters. The
S-1 is the third well in Falcon's Hungarian drilling program. It is
located on the eastern margin of the basin on the Mako License,
approximately 40 kilometers east of the first well at Pusztaszer-1
and about 25 kilometers north of the second well at Mako-6. Falcon
Oil & Gas Ltd. is a Canadian corporation, which is in the
business of oil and gas exploration and production. It has
operations in Hungary through its wholly-owned subsidiary TXM Oil
and Gas Exploration Kft., and in Romania through its wholly-owned
subsidiary JVX Energy Corporation. Additional information about
Falcon Oil & Gas Ltd. is available on the company's Web site at
http://www.falconoilandgas.com/. Contacts: Falcon Oil & Gas
Ltd. Marc A. Bruner President, CEO and Chairman Allan D. Laird
Director (303) 803-3646 United States CTA Public Relations Bevo
Beaven Vice President/General Manager (303) 665-4200 United Kingdom
4C Burvale Carina Corbett, John Carrick Smith Directors 020-7907
4760 / 4761 The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this release.
The TSX Venture Exchange has in no way passed upon the merits of
the above-described transaction and has neither approved nor
disapproved the contents of this press release. DATASOURCE: Falcon
Oil & Gas Ltd. CONTACT: Marc A. Bruner, President, CEO and
Chairman, or Allan D. Laird, Director, both of Falcon Oil & Gas
Ltd., +1-303-803-3646; or United States, Bevo Beaven, Vice
President/General Manager of CTA Public Relations, +1-303-665-4200,
for Falcon Oil & Gas Ltd.; or United Kingdom, Carina Corbett,
+44-20-7907-4760, or John Carrick Smith, +44-20-7907-4761, both
Directors of 4C Burvale, for Falcon Oil & Gas Ltd. Web site:
http://www.falconoilandgas.com/
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