Leni Gas & Oil (LGO) has provided its first report on the remaining potential of the Peneszlek Gas Field Development (7.27% LGO) in eastern Hungary.
Further to LGO's January 21, 2009 update on new developments in Hungary, a study recently completed by Tracs International assessed the five possible drilling locations in the Peneszlek Gas Field. The total unrisked mean GIIP ("gas initially in place") from the five possible drilling locations is 11.27 bcf.
Of the proposed locations, Pen-104 and the re-drill of the Pen-12 are on previously tested structures proven to contain gas, hence are considered as contingent resources. The total unrisked mean contingent gas resources from these two locations is 2.57 bcf.
Pen-12 twin, Pen-102 and Pen-9 are considered prospective resources, as gas has not been proven in either the proposed structure or reservoir. The total unrisked mean prospective gas resources from these three locations is 4.65 bcf.
The assessment consisted of a petrophysical analysis of relevant wells, a review of the seismic interpretation, depth conversion of relevant seismic horizons and an estimation of GIIP and gas resources.
Furthermore, an announcement on the potential of the prematurely abandoned Peneszlek Miocene field will be reported in the near term.
All reserves and resources definitions used are per the Society of Petroleum Engineers 2005 classification. Contingent Resources are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from known accumulations but which are not currently considered to be commercially recoverable. Prospective Resources are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations.
David Lenigas, Executive Chairman, commented, "The independent assessment by Tracs International of the Penészlek Development Area further supports LGO's belief in the considerable potential of our eastern Hungary assets, from both the Miocene and Pannonian sands. Further development of the acreage is already underway and the assessment will now primarily be used to refine the planned development programs and thereby increase the chances of significantly expanding production over the next twelve months."