26 May 2007 - 10:51
  • News Code: 105534

Timing remains uncertain, but Falcon Oil & Gas Ltd., Denver, plans to develop a vast basin-centered gas accumulation in southeastern Hungary, where it just announced an oil discovery.

The company, which on May 22 received a long-term oil and gas production license from the Hungarian Mining Authority, said it will "put the necessary systems and personnel in place" to develop its holding in the Mako Trough near the borders with Montenegro and Romania.


The production license covers Falcon"s Tisza and Mako exploration licenses totaling 900 sq miles and remains in force as long as the company continues operations, but it was unclear how soon sustained gas or oil production might begin (see map, OGJ, Feb. 6, 2006, p. 40).


The company said its Magyarcsanad-1 well near the acreage"s southern extremity discovered oil and gas in the Miocene Endrod formation below 13,000 ft.


Falcon plans to frac the entire 1,188 ft of Endrod that is behind casing after a 23-ft gross interval at 13,310 ft flowed 377 b/d of sweet, 48° gravity oil and 745 Mcfd of gas at 3,843 psi flowing tubing pressure without treatment. Estimated bottomhole temperature is 360° F.


Magyarcsanad-1 is 10¼ miles south of Falcon"s Mako-6 well, TD 18,674 ft, which encountered 17,100 psi bottomhole pressure and 460° F. temperature. Mako-7, northwest of Mako-6, set a Hungarian drilling depth record at TD 19,964 ft on Dec. 21, 2006.


Falcon has acquired more than 1,100 sq km of 3D seismic surveys, is drilling its sixth well, and has built a high-capacity gathering pipeline on the acreage. The company has described the Tertiary-age Mako Trough basin-centered gas accumulation, discovered in the 1960s, as the world"s youngest.


Consulting engineers in 2006 assessed the acreage as having potential for a contingent resource of 55 tcf of gas, three fourths of which is attributed to the Pliocene Szolnok formation.



News Code 105534

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