DualEx Considers Repair Options for Hungary Well

DualEx announced that operations at the Company's PEN-101 site in northeast Hungary have been temporarily suspended following an acid stimulation of the perforated interval in the Miocene volcaniclastic section. The drilling rig has been moved off location and preparations to bring the PEN-105 well on to production in the next few days continues.

The PEN-101 well was acidized in two stages, with a short flow test after the first stage showing a significant improvement of productivity. However, during the flow back of the second stage, water began to be produced with the gas. It is believed the produced water is from a deeper, water-bearing zone, due to damaged cement isolation. Options to repair the well, including a possible short sidetrack, are being considered and once upcoming operations with the drilling rig have concluded, the rig can be moved back onto the PEN-101 site to conduct the remedial work. DualEx has a 42.826% interest in the PEN-101 well, through its subsidiary PetroHungaria kft.

Garry Hides, DualEx's CEO, stated, "although we are disappointed with the mechanical problems encountered during the PEN-101 completion operation, we are certainly encouraged to have tested significant gas rates from a previously undrilled structure, and anticipate that the 101 well will provide additional cash flow to the project once the remedial work is completed."