Pogo Tests Successful Exploratory Well in Hungary

Pogo Producing Company revealed the successful flow-testing of the Szolnok No. 2 well, sometimes referred to as the Pogo Orm-K-1. That well, the third well to be drilled but the first to be flow-tested in Pogo's new Hungary exploration program, produced hydrocarbons at a calculated daily rate of approximately 14.2 million cubic feet of natural gas per day (mmcf/d), plus 150 barrels of condensate per day, with a flowing tubing pressure of 3,326 pounds per square inch on a 28/64" choke. The Szolnok No. 2 well was drilled to a subsurface depth of 7,372 feet, encountering a gross pay column of over 200 feet, yielding net pay of at least 90 feet, at subsurface depths between 6,836 feet and 7,124 feet. The pay sections contained high quality hydrocarbon natural gas with minimal (less than 10%) inert components in the natural gas stream. The discovery well encountered good porosity and permeability in a structural feature measuring about 1,100 acres in size.

Pogo's Chairman, Paul G. Van Wagenen, said, "We are very pleased with this discovery in the Szolnok area. More wells will be needed in the next several months in order to fully develop the discovery area. This drilling success vindicates our scientific analysis of this particular Miocene-marine prospect type. In exploration, not every prospect type will work. However, when one play type proves to be successful, as this one apparently is, it prompts us to identify geologically similar exploratory prospects which can be drilled across our large license area."

The Szolnok No. 1 and the Tompa No. 1 wells were the first two wells drilled. Subsurface casing was run on each of those two wells before drilling the Szolnok No. 2. A smaller completion rig is now being sought while the company examines the possibility of conducting fracture stimulation and/or flow-testing on one or both of those two wells. Meanwhile, the principal drilling rig will return to Pogo's Tompa license area to drill the next exploratory well in Pogo's previously established exploration drilling program, which was designed to evaluate a variety of different play types.

Pogo is the operator and 100% working interest owner in the entire 782,000 acre Szolnok/Tompa license areas located in central and southern Hungary.