"Hungarian oil and gas group MOL has announced on Monday that with Magyar Horizont Energia Ltd., which holds the largest and second largest exploration acreage in Hungary, respectively, it drilled three consecutive successful exploration wells in the Trans-Tisza region in Hungary.“This signals that the agreement for joint hydrocarbon exploration activities, signed last August between the two parties, has proven quite successful," MOL said in a statement on the website of the Budapest Stock Exchange (BSE).
The statement is as follows:
“The determination of the exact quantity of hydrocarbon reserves discovered by the said wells is still in progress. As the region has well developed infrastructure, project return indicators are expected to be robust, and the companies expect that they will be able to start production from the first two wells as early as this year. The parties will share the production on a 50:50% basis."
“As part of the cooperation between MOL and MHE covers the two companies' neighbouring exploration blocks in Hajdú-Bihar and Békés Counties there were three exploration wells drilled so far and each of them were successful. This performance far exceeds the historic average well success rate of 25-30% typical for the country."
“The first well, Okány-1, was drilled last year, well tests were performed early this year and its production rate is 50.000 m3 gas per day (1.75 mmcf per day)."
“The second well, Körösújfalu-1, was drilled and tested between February and April 2007 and its production rate is 255.000 m3 gas per day (9.0 mmcf per day), in addition to nearly 50 m3 (314 bbl per day) condensate per day."
“We have just completed the latest well tests, which verified that the third exploration well, Zsadány-É-1, is able to produce 115.000 m3/day (4.0 mmcf per day) gas and 15 m3/day (94 bbl per day) condensate."
“The partners are preparing to drill jointly new exploration wells to discover and test potential reservoirs located in the Pannonian sandstone gas-prone structures in 1700-2600 meter depth, based on the geological concept developed and in most parts confirmed by the wells drilled so far."
“The successful co-operation with MHE Ltd was the first result of MOL's efforts aiming at sharing exploration risks and upside in its Hungarian acreage and accelerating the speed of operations by involving experienced and financially sound international partners."
Magyar Horizont Energia Ltd, founded in 1998, is the second largest oil company in Hungary (following MOL) in terms of the total size of its exploration blocks."
Source:
Portfolio Online Financial Journal
12.06.2007