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ExxonMobil recommends abandoning Hungary exploration

Denver-based Falcon Oil and Gas on Thursday said ExxonMobil had recommended abandoning an exploration and production program both companies share in Hungary's Makó Trough, but Falcon believes tests to date do not represent a complete evaluation of the potential of the site.

ExxonMobil made the recommendation after completing two fracture stimulation tests in the Szolnok Formation of the Makó Trough. The lower fracture stimulation at 4,358 meters yielded average gas flow rates of about 6,000 cubic meters per day and average water flow rates of about 2.5 cubic meter to 60 cubic meter per day over a 10 day period. The upper fracture stimulation at 4,200 meters yielded average gas flow rates of about 1,415 cubic meters per day and average water flow rates of about 200 to 500 cubic meters per day over a 46 hour period.

“The very high water flow rates and calculated test permeability experienced...leads Falcon to be believe that the fracture stimulation connected to a fresh water filled natural fracture system. It is possible that the matrix Szolnok Formation remains largely untested due to preferential flow from the natural fractures,” Falcon said.

Falcon said it is evaluating the remainder of the Szolnok Formation to determine if it is possible to move away from this potential natural fracture system and has recommended two more fracture stimulations. The remaining capital in the $50 million initial work program should cover the testing, it added.

“The bottom line is that we are disappointed in test results to date,” said Falcon CEO Marc A Bruner. “However, the Makó Trough is an enormous geography with numerous potential zones and formations which remain untested. It’s our opinion that the tests to date do not represent a complete evaluation of the hydrocarbon potential of the Szolnok Formation or the Makó Trough overall.” (MTI-ECONEWS)