PetroHungária Kft (a 90% owned subsidiary of Ascent Resources Plc), started drilling the PEN-102 well on 26 April 2007. This morning at 06:00 CET, the rig was drilling ahead in 12-1/4 inch hole at 504 meter with a planned total depth of 1,500 meter. Partners in the well are DualEx of Canada (37.5%) and Petro Pequnia of Sweden (2%) and under the farm-out agreement, DualEx will pay 75% and Petro Pequnia 4% of the costs of this well with PetroHungaria funding the remaining 21%.
The PEN-102 well is an appraisal well of a gas discovery made in 1983 at PEN-12. The well will target lower Miocene tuffaceous reservoir rocks which produced in the Penészlek gas field roughly five kilometers to the east. In addition, the prospect includes a shallower Pannonian Sand target of the same age as that successfully tested in the PEN-104 well, the gas discovery announced in November 2006. In relation to the development planning for PEN-104, PetroHungaria and its partners are evaluating the incremental reserves of two nearby suspended wells including PEN-12 drilled in the 1980’s. These wells both produced gas on test from the Miocene formations but were never placed on production.
After drilling PEN-102, the rig will move to drill the VAM-1 well which is designed to test exploration prospects in both the Miocene and Pannonian formations in the Vámospércs area, roughly 18 kilometers to the southwest of the Penészlek field. Ascent’s Managing Director Jeremy Eng said, „The Hungarian operations are an important part of our European gas orientated portfolio. The new wells have the potential to increase reserves as well as to produce gas in the short-term, thereby providing additional cashflow for the Company. These wells are the option wells under our farm-in agreement and PetroHungaria retains a 60.5% working interest.
Additionally, the tight gas redevelopment project in the south west of Hungary, in association with MOL, the Hungarian oil and gas company continues to progress. This project also has great potential and consolidates our Company’s position in Hungary.” Garry Hides, CEO of DualEx, commented, „We’re pleased to be back drilling at Nyirség. Each of these two wells could add significantly to the already demonstrated potential of the blocks. Once we’ve completed earning our final working interest with these wells we can move forward with our partners to more fully evaluate the blocks.”
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