Falcon's Szekkutas-1 Well Encounters Gas


Szekkutas-1 Well
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Falcon Oil and Gas says that its Szekkutas-1 well in Hungary has reached total depth of 3,585 meters (11,762 feet). Production casing has been set in order to test a number of overpressured formations. The well has successfully explored the eastern flank of the Basin Centered Gas Accumulation (BCGA) on the Mako License, approximately 40 kilometers (25 miles) east of the first well at Pusztaszer-1 and about 25 kilometers (16 miles) north of the second well at Mako-6.

Szekkutas-1 Well

The well encountered gas shows beginning in the lower Algyo Formation at 2,450 meters (8,038 feet). Wireline logs indicate gas saturation with no movable water from 2590 meters (8,497 feet) to TD (total depth). Subject to further testing this depth will be considered to be the top of the BCGA at this location. This gross lithology continues as alternating shale and sands in the Szolnok Formation over a total thickness of 785 meters (2,575 feet) down to the Szolnok base at 3,375 meters (11,073 feet).

Intermediate casing was set at 3,200 meters (10,499 feet) to protect the formations already drilled and to prepare for anticipated increases in gas pressures.

The Szekkutas-1 well is also significant as the gas-saturated sands of the BCGA were encountered about 800 meters (2,625 feet) higher than the previously identified BCGA top in the Mako-6 well, which is drilling near the center of the Mako Trough.

Below the Szolnok formation with a base at 3,375 meters (11,073 feet), the well entered the significantly overpressured Endrod Formation. Gas influx in this section required flaring for well control. Mud weight was increased to 16 pounds. A total of 200 meters (656 feet) of Endrod marls, Bekes conglomerate and Triassic dolomite basement was drilled to the Total Depth at 3,585 meters (11,762 feet). High-pressure gas continued to flow during the drilling of this section. The suite of logs indicated the formations to have low porosity, while special imaging logs (FMI) showed the presence of fractures. Falcon intends to conduct its testing program of this fractured, gas-bearing interval prior to testing the overlying Algyo-Szolnok sand-shale formations.

Mako-6 Well

The Crosco 801 rig reached a measured depth of 5,146 meters (16,883 feet) on May 16, 2006. As previously reported, drilling through the Szolnok Formation over a gross interval of at least 900 meters (2,953 feet) yielded overpressure gas-bearing reservoirs. Subsequent drilling has proceeded below the Szolnok Formation, and more than 700 meters (2,297 feet) of the Endrod Formation have now been drilled. The well has continued to recover gas with methane (C1) to pentane (C5) from the Endrod.

The substantial increase in gas pressures in the Endrod Formation has made flaring a requirement to control the well, along with mud weights over 16 pounds per gallon. The well is currently planned to a depth of 6,000 meters (19,685 feet) to explore the base of the Mako Trough.

Falcon Oil & Gas Ltd. is a British Columbia 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, and in Romania through its wholly-owned subsidiary JVX Energy Corporation.

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