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' neighboring exploration blocks in Hajdu-Bihar and Bekes 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, Okany-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, Korosujfalu-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, Zsadany-E-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.
Ms. Ibolya Ernyey, the current managing director, founded Magyar Horizont Energia Ltd in 1998, and the present main owner, Aspect Energy LLC, having its seat in Denver and holding several, dominantly onshore exploration and production licenses in the Gulf of Mexico, joined the company in 2004 by virtue of a joint venture agreement. The Ltd is the second largest oil company in Hungary (following MOL) in terms of the total size of its exploration blocks.
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