Falcon Oil and Gas
FOLGF.PK
FO.V
Besides over 200 TCFs of natural gas,
8 hundred million barrels of oil!!??
from $FOg
Was reviewing the FO website after a long break, and thought that as a supplement to JR's links, I would post the Hungary Project Overview. Note the Gustavson Associates' reference to the resource potential of 427 million bbls of Oil in the Endrod, and a further 369,000,000 bbls in the Algyo formation. The Scotia Report quadrupled the TCF estimates for the gas, but are we sitting on another 800,000,000 bbls of oil?
Eight Hundred Million.
Sort of minimizes Dr. Evil's One Million to nil!
FO Flow...
HUNGARY PROJECT:
Our properties in Hungary are located in the south central area of the country near the city of Szeged. We have obtained the rights to explore in two key license areas. The Tisza License covers approximately 236,000 net acres (955 square kilometers) and the Mako License covers approximately 340,000 net acres (1,374 square kilometers). We operate in Hungary through our wholly owned Hungarian subsidiary known as TXM Energy LLC.
Our Hungarian operations plan is based on drilling into select areas of a key underground formation known as the Mako Trough. The Mako Trough is itself prospective for natural gas and contains both conventional gas prospects and Basin Centered Gas Accumulations (BCGAs), but it has gone largely unexploited due to historically low natural gas prices and a lack of understanding of BCGAs.
THE MAKO TROUGH
There has been oil production for several decades around the outskirts of the Mako Trough in two large oil fields, the Pusztafoldvar field to the northeast of the trough, which was discovered in 1958, and the Algyo field to the southwest, discovered in 1965. These two fields represent an estimated 900 million barrels of oil equivalent (BOE) reserve base.
Falcon is targeting three prospective formations in the Mako Trough—the Algyo, Szolnok and Endrod formations. These marine sediments are believed to be the source rock for the surrounding oil and gas fields. These formations appear to contain additional hydrocarbons (predominantly gas) trapped in a deep Basin Centered Gas Accumulation (BCGA) as well as conventional reservoirs.
In addition to the BCGA, the Falcon lands are rich with other prospects and targets. The wells are planned to intersect multiple formations with the possibility of several producing zones in a single wellbore.
Our geologists have already completed detailed studies on the existing 2D seismic data and have also incorporated the historical drilling data from 1969-1972, during the former communist era. Starting in 2005, we have begun a program of running 3D seismic surveys to confirm and extend the 2D seismic interpretation. Two new 3D surveys have been completed as of July 2005. These have brought greater focus and clarity to the underground structures and are used by our geoscientists to select and refine the well locations.
COMMENTS FROM THREE PROFESSIONAL GEOLOGISTS REGARDING BASIN CENTERED GAS ACCUMULATION POTENTIAL IN THE MAKO TROUGH
Gustavson Associates characterized the Algyo formation as normally pressured, seismically defined, and having structural/stratigraphic traps. Gustavson’s resource assessment of the Algyo formation is 369 million barrels of oil and 4.4 Tcf of gas. In addition, Gustavson indicates that the Endrod formation is an over-pressured, gas-saturated BCGA. Its resource assessment for the Endrod formation is 427 million barrels of oil and 13.1 Tcf of gas.
Dr. Ben Law, a respected consulting geologist who was instrumental in developing the basin centered gas model, offers a data interpretation that leads to the hypothesis that the BCGA begins at the Szolnok formation (starting at 3,300 meters – 3,500 meters), which extends for 1,000 meters when it reaches the top of the Endrod and continuing into the Endrod. Law believes the potential gas-in-place is greatest in the Szolnok and not the Endrod. Law estimates the Szolnok formation contains 900 to 1000 meters of gas-charged rock, of which 60% is reservoir quality and calculates the BCGA within the Szolnok formation could contain 700 Bcf per section. There are an estimated 205 prospective sections.
Sproule Associates Ltd., Canadian petroleum consulting firm, fully supports Gustavson’s analysis of a BCGA in the Endrod. However, Sproule’s analysis of the existing Mako-3 well indicates gas shows in the Algyo and as well as throughout the Szolnok formation. Sproule did not specifically identify the Szolnok as being part of a BCGA.
National Instrument 51 - 101 Resource Potential
A separate evaluation of the Falcon License areas' potential oil and
gas reserves, "National Instrument 51-101" estimates the potential
recoverable gas resources in the Mako Trough between 4.1 Tcf (Low -
p90) and 27.1 Tcf (High - P10), with an expected (Best Case Value - P50
) of 11.7 Trillion cubic feet.
HUNGARY DRILLING PROGRAM PREPARES FOR SEVEN WELLS
Falcon/TXM signed two drilling contracts with Crosco Drilling & Well Services Company, Ltd of Croatia. Crosco is an international drilling contractor providing services in 23 countries. The first contract is for a 4000 meter rig (~13,000 feet) to drill two shallow wells, with an option for a third shallow well. The second contract is for an 8000 meter rig (~26,000 feet) to drill a deep well on the Mako License, with an option for three additional deep wells. The two contracts provide for a total of three firm wells, with an option for Falcon/TXM to extend these contracts to a total of seven wells.
The first shallow well and first deep well will be commenced as soon as all government permits and other approvals have been obtained by Falcon/TXM, which is estimated to be sometime in the third quarter of 2005.
In conjunction with the drilling program, Falcon has signed a $10 million (USD) purchase order and has made a down payment to Apex Tubulars of approximately $1 million (USD) for approximately 182,000 feet of various types and sizes of pipe, casing, and other materials.
TRANS-EUROPE GAS PIPELINE TRAVERSES FALCON LICENSE AREA
A main inter-country trunk pipeline system that carries gas to the European markets via the Baumgarten Gas Hub runs across Falcon’s licensed property in Hungary.
Copyright © 2005, Falcon Oil & Gas Ltd. all rights reserved.
Website Designed and Hosted by CTA Public Relations. |
