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I haven't been proved right on this one yet,but I believe that they have the right mix of properties and management.I bought more at 16.5 cents.If you got a few hundred dollars and some time maybe a year it will grow.Do some DD and see if it is a future home run?
Time to wake up!This stock is close to an explosion.The Exxon deal will be hitting the media soon,and natural gas is a wanted commodity,especially any not comming from Russia.A speculative buy buy buy!Test results comming and if they are good,this will be at a dollar in a heart beat.You may have up to 60 days to accumalate.But and a big but is,if results are bad you will get a 50% hair cut overnite.I believe it is worth throwing a few hundred or a thousand at.GLTY
is this it? it looks like its toast. down to single digits like every other venture stock that was hyped on rumoR?
what gives?
no news for months.
in my analysis of the chart i think its possible that this stock hits 2,5$ short term (one month).
they have big investors as well
I'm new to this stock and was wondering if there are any people really knowledgeable about what's going on with it. Also is there any reason for the rise in price today, not that I'm complaining.
Thanks.
How low?
How low does everything think this drop that started today will go?
Was asked for this on the coolsters board
FO.V
Forgot to put in the chart, but look for the volume to die back to the normal levels before moving price back up
another great day.
close at 1.01 52.6 Mio Volume
NEW YORK, April 10 (Reuters) - Exxon Mobil Corp (XOM.N: Quote, Profile, Research) has entered into an agreement with Falcon Oil & Gas (FO.V: Quote, Profile, Research) to start development work in part of an area in the Mako Trough, Hungary, in which Falcon holds a long-term production licence, the companies said on Thursday.
The agreement, which is effective Thursday, is between Falcon's wholly owned subsidiary, TXM Exploration and Production LLC, and Exxon Mobil's affiliate, Esso Exploration International Ltd.
The area consists of about 184,300 acres, or 75 percent of Falcon's 246,000-acre production licence. The contract area will be owned jointly, with Falcon owning a 33 percent interest and Exxon Mobil a 67 percent interest, the companies said.
Under the agreement Exxon Mobile will pay Falcon $25 million and spend $50 million to test one or more of Falcon's existing wellbores or drill one or more new wells for such tests, Falcon said.
If Exxon Mobil decides to continue to the next phase, the appraisal work program, it will pay Falcon another $50 million and spend $100 million, said British Columbia, Canada-based Falcon. If Exxon Mobil decides not to proceed, it will relinquish all of its interest in the contract area to Falcon.
After the appraisal work program is completed, Exxon Mobil will pay Falcon $75 million to proceed to the next phase, the development program, or reassign its interest to Falcon, according to the terms of the deal.
Falcon said it would incur no development costs within the contract area for Exxon Mobil's commitments during the initial work program or the appraisal work program.
Beginning with the development program, Falcon and Exxon Mobil would each receive revenues and be responsible for its proportionate share of expenses, under a joint operating agreement. Continued...
Falcon Oil & Gas Ltd. Enters Into Production and Development Agreement With ExxonMobil on Falcon's Project in Hungary
Thursday April 10, 9:45 pm ET
DENVER, April 10 /CNW/ -- Falcon Oil & Gas Ltd. (TSXV: FO, "Falcon") announced today that it and its wholly owned subsidiary, TXM Exploration and Production LLC, have entered into a Production and Development Agreement with Exxon Mobil Corporation affiliate Esso Exploration International Limited (ExxonMobil) under which Falcon and ExxonMobil will become joint owners in a specified portion (the "Contract Area") of Falcon's long-term production license (the "Production License") in the Mako Trough, Hungary. ExxonMobil will operate the Contract Area.
(Photo: http://www.newscom.com/cgi-bin/prnh/20080410/NYTH137 )
The Contract Area consists of approximately 184,300 acres, or 75% of Falcon's 246,000-acre Production License. The Contract Area will be owned jointly, with Falcon owning a 33% undivided working interest and ExxonMobil owning a 67% undivided working interest. The Agreement is effective today.
Falcon's Chairman and CEO, Marc A. Bruner, stated, "This agreement is a milestone in Falcon's history and is the culmination of Falcon's extensive efforts, announced on June 27, 2007, to find a strategic partner to support and enhance Falcon's exploration and development efforts on Falcon's long-term Production License. We are very pleased that we were able to reach agreement with ExxonMobil, a company which brings to the table all the financial, technical and operating expertise necessary to pursue the completions, testing and evaluation of this resource, and then to maximize value if we are able to commercialize this opportunity."
The Agreement provides for an initial consideration of US$25 million to Falcon and for ExxonMobil to spend US$50 million to conduct an Initial Work Program to test one or more of Falcon's existing wellbores or drill one or more new wells for such tests. Field operations under the Initial Work Program are scheduled to commence this year. After the Initial Work Program is completed and if ExxonMobil elects to proceed to the next phase (the "Appraisal Work Program"), it will pay Falcon an additional US$50 million and will expend US$100 million on the Appraisal Work Program. If ExxonMobil elects not to proceed beyond the Initial Work Program, it will relinquish and reassign to Falcon all of ExxonMobil's interest in the Contract Area. After the Appraisal Work Program is completed, ExxonMobil will pay Falcon an additional US$75 million if it elects to proceed to the next phase (the "Development Program") or it will reassign its interest to Falcon, subject to the terms of the Agreement.
Falcon will incur no development costs within the Contract Area for ExxonMobil's commitments during the Initial Work Program or the Appraisal Work Program. Beginning with the Development Program, Falcon and ExxonMobil would each receive revenues and be responsible for its proportionate share of expenses within the Contract Area (that is, 33% Falcon and 67% ExxonMobil), under a joint operating agreement.
ExxonMobil has the right to assign half its interest to MOL, a publicly traded Hungarian oil and gas company.
In addition to Falcon's 33% undivided ownership in the ExxonMobil-operated Contract Area, Falcon will remain sole owner and operator of 391,445 acres outside the Contract Area boundaries, as well as shallow rights covering 184,336 acres within the Contract Area, as follows:
-- Falcon Lands: Falcon retains 100% ownership in the remaining 25%
(61,445 acres) of the Production License that is not part of the
Contract Area.
-- Exploration Licenses: Falcon retains 100% ownership in 330,000 acres
which are outside the boundaries of the Production License, under the
original Mako Exploration License and original Tisza Exploration
License. Falcon also retains 100% ownership in the portions of the
Exploration Licenses which are above 2,800 meters within the boundaries
of the Production License. The 330,000-acre area outside the
Production License, and the shallower depths are not part of the
Production License.
The Contract Area, Falcon Lands, and Exploration Licenses are shown on the attached map.
Regarding Falcon's retained acreage, Mr. Bruner stated, "We see significant upside potential within the large portion of the Mako Trough where Falcon still owns 100%, and we intend to continue to evaluate and pursue opportunities simultaneously with ExxonMobil's operations."
BMO Capital Markets has acted as exclusive financial advisor to Falcon with respect to the Transaction.
Falcon to Host Investor Conference Call
Falcon will host an investor conference call beginning at 9:00 a.m. (Eastern Time), Friday, April 11, 2008. The conference call will be available live via telephone. To participate in the conference call within the U.S. and Canada, dial (866) 688-0039. To participate in the conference internationally, dial +1 (706) 679-3130. The conference code is 43449303. The conference call will also be broadcast live on the Internet and may be accessed at www.falconoilandgas.com.
The conference call will be available for replay via telephone beginning approximately two hours following the conclusion of the live call. To listen to a replay of the conference within the U.S. and Canada, dial (800) 642-1687 or internationally +1 (706) 645-9291. The replay code is 43449303.
About Falcon Oil & Gas Ltd.
I am back in here. $40 million raised at 40 cents last June and now selling for 37 cents. No bad news and $123 million in cash! Management seems very honest and the best PR and accountants on our side. With 435 million shares they have over 25 cents in cash and are pumping oil and gas. Short interest is at 35K down from 135k and rumors are spreading on ivilliage to the contrary to drive us down more. I am also into TAGOF which looks just as good and SFEG and EERHE. Great time to be bottom fishing on all of the above.
Looks like it will test the 20's for support and then we shall see.
venture stocks are risky.
this one was overdone at 7 dollars for sure.
Pretty big slide the last month or so, but seems like it might have hit bottom.
Ok, it crushed the 2.20 support level yesterday.
this is a sympathetic bounce.
look, the investor confidence will take years to restore.
this is going back to sub-dollar and its not good for the tsx-v.
this thing simply can't go on anymore.
smells of BRE-X.
nasty.
nuff said.
Falcon Oil & Gas Ltd. Provides Update on Well Completions
Wednesday October 11, 7:00 am ET
BUDAPEST, Hungary, Oct. 11 /PRNewswire-FirstCall/ -- Falcon Oil & Gas Ltd. (TSXV: FO) provided an update on its oil and gas exploration activities in Hungary.
Well Completion Schedule
Falcon has entered into two separate contracts with well service suppliers for equipment to secure a hydraulic work-over rig ("HWO") and a frac crew, as a necessary part of its completion process on three wells (the Mako-6, Pusztaszer-1, and Szukketas-1). The HWO rig, which was not available until recently, and the frac crew are scheduled to arrive on location by November 30, 2006, when fracing and stimulation on the Mako-6 is anticipated to begin. The rig is capable of handling the high pressures and hook loads of the deep wells. Further, the HWO auxiliary equipment provided by the HWO contractor is capable of handling high pressure pumping. Falcon also plans to use the HWO rig (as well as other rigs) on its shallow wells to provide desired safety margins during completion operations on those wells.
Falcon Chairman, Marc Bruner, stated, "With the HWO rig's significant capabilities, Falcon believes that this rig optimizes safety and performance, and that these contracts represent an important step toward completing these wells."
Falcon plans to perform multiple fracs on these three Mako Trough wells, with the number varying from well to well. Fracing and stimulation activities will start at the lowest interval and move up sequentially in order to fully evaluate each prospective interval. As at the date hereof, Falcon's internal geological review has identified the following number of prospective intervals:
Pusztaszer-1 well 4
Szukketas-1 well 13
Mako-6 well 49
The number of prospective intervals is subject to change during fracing and stimulation activities. Falcon plans to move the frac equipment between wells during testing, thereby allowing operations to take place on all wells concurrently. Falcon believes that the fracing and testing of any one of its wells could take approximately three months, depending on conditions encountered within each well during the process. Each potential interval in each well will need to be perforated, tested, evaluated for fracing, fraced and then tested again. Falcon will announce test results from time to time during this process.
Gas Gathering Infrastructure
In order to decrease or eliminate flaring of gas at the Mako-6 well (if production is achieved), Falcon plans to enter into one or more contracts to transport gas via a gathering line from the Mako-6 well to an existing natural gas pipeline approximately 11 kilometers from the Mako-6 well. The existing pipeline is connected to a gas processing plant. Falcon is engaged in negotiations to acquire the necessary rights-of-way for the gathering line. Assuming the rights-of-way and related contracts are obtained, construction of such a gathering line and related facilities is expected to be completed by year-end. Once operational, this gathering line will also accommodate future natural gas production from the Mako-7 well, if testing is successful on that well.
About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd. is a British Columbia corporation which is in the business of oil and gas exploration and production. It has operations in Hungary through its wholly-owned subsidiary TXM Oil and Gas Exploration, LLC, and in Romania through its wholly-owned subsidiary JVX Energy Corporation. Further information about Falcon is available at www.falconoilandgas.com.
Contacts:
Falcon Oil & Gas Ltd.
Marc A. Bruner, President, Chairman & CEO
Michael K. Lam, Corporate Development North America
(416) 303-8810
Alexander Hubbard-Ford, Corporate Development Europe
+44 (0) 79 8448 1541
Canada - Brisco Capital Partners Corp.
Graeme Dick (403) 313-9663
United Kingdom - 4C-Burvale
Carina Corbett
John Carrick-Smith
+44 (0) 20 7907 4761/0
Falcon Oil and Gas Value
The company put out a press release today (9/25/06) saying that the Scotia Group had done another resource assessment of Falcon's property in Hungary, and come up with a 50% probability estimate of ~ 55 trillion cubic feet of natural gas. This is a resource, not a reserve, so if we assume this would translate into a reserve of 30 trillion cubic feet (TCF), produced linearly over a time frame of 20 years (ie, 1.5 TCF/year), starting in 2008, and also assume that Falcon will make $1.00/MCF after tax on this production, and use a discount rate of 10%, the net present value of this resource is ~$11.5 billion. Falcon currently has about 500 million shares, warrants, and options outstanding. If we assume that this number will increase to 750 million before the gas starts flowing in serious volume, the current value per share is $11.5 billion/0.75 billion, or ~ $15.50/share. The current share price is $2.70 (US), so the stock appears to be quite undervalued.
A1
Falcon ? will it stay above 4.00 or move down to say 2.50?
A financing in the works at 3.50
Possible 30tcf
FOLGF - Falcon Oil & Gas Logs Deep Well and Runs Casing
Monday July 10, 11:52 pm ET
BUDAPEST, Hungary, July 10 /PRNewswire/ -- Falcon Oil and Gas Ltd. (TSXV: FO), announced today an operational update on its Mako-6 well in Hungary.
The Mako-6 well has reached TD at a 5692m-measured depth and 5 1/2-inch casing has been set in preparation for testing of multiple zones. As indicated in Falcon's May 18, 2006 press release, the well had already drilled a 900m-gross sequence of the Szolnok Formation with overpressured gas shows and a net-to-gross ratio of approximately 60%.
The Endrod Formation was expected to be present below the Szolnok Formation, as determined by prior drilling in the historic Hod-1 and Mako-1, -2 and -3 wells. The Endrod Formation was indeed encountered at 4388m with a sharp increase in both pressure and gas shows as evidenced by the mud log. At the base of the Endrod (5075m), Falcon management elected to continue drilling to explore and investigate the possibility of coarse-grained clastic sediments in the bottom of the basin. Such potential reservoir-grade sediments might be associated with early post-rift and syn-rift deposition, if present. This deeper target has never been drilled in the Mako Trough.
Based on well information and seismic surveys, the Endrod has now been stratigraphically subdivided into an Upper and Lower member. The Upper Endrod (4388m to 4735m) consists of shale and marl with thin, fine-grained, sandstone turbidites. This unit appears to be highly overpressured and gas-charged. The sediments are organic-rich and represent part of the hydrocarbon generating portion of the Endrod. As mentioned in Falcon's May 18, 2006 press release, mud weights had to be increased to more than 16 pounds per gallon and gas evolving from these tight gas sands had to be flared to control the well.
The Lower Endrod (4735m to 5075m) continued with a 340m sequence of organic-rich marl and shale. Significant gas shows and apparent high pressures persisted. Fine-grained sandstone turbidites were largely absent, but instead two 20m and 50m sandstone/conglomerate sequences occurred in discrete, thick intervals. These intra-Endrod conglomeratic units show indications of permeability on the logs evidenced by mud-cake and invasion profiles. Well logs also indicate gas with no movable water.
The Upper and Lower Endrod are seismically distinctive and can be mapped over 1000 square km across the Mako Trough. The presence of the gas cell is believed to be pervasive throughout this area in accordance with Falcon's basin-centered-gas model.
The apparent high net-to-gross, coarse-grained sediments encountered below the Endrod have been divided by Falcon into two zones based on both log character and clear seismic definition. The upper zone is called the Basal Conglomerate, which is likely deposited during early post-rift times. The lower zone is called the Syn-rift Conglomerate. It is probably associated with the early rifting phase at the time when the Mako Trough was being formed.
The Basal Conglomerate (5075m to 5348m) consists of a very thick, 270m or more, coarsening-upward sequence of shale, sandstones and conglomerates. These sediments exhibited similar high pressures and gas shows previously encountered within the Endrod. Well log analyses predict gas presence with no apparent movable water. Initial log interpretation, strong mud cake build-up and invasion profiles indicate good permeability and porosity, which, however, must be confirmed by flow testing. Strong seismic reflectors associated with this zone can be mapped over 500 square km covering much of the central part of the Mako Trough.
The underlying Syn-rift Conglomerate (5348m to TD at 5692m) is a 350m sequence of coarse conglomerates for which well log analyses indicate the presence of gas with no movable water. Initial analyses show these units to be of low porosity; however, strong mud cake build-up and invasion profiles in this zone may be indicative of permeability. These syn-rift conglomerates have a complicated distribution across the Mako Trough with thickness varying with deep structural control, so reservoir prediction is not possible at this stage.
The well was terminated at 5692m after recovering a core, which showed that the well was still in the syn-rift section. Although strong gas shows were continuing, Falcon management considered it operationally prudent to not expose the very large section of open-hole, gas-bearing section (approximately 1400m) to more drilling. The well has been cased and will enter multiple flow test phases upon arrival of a suitable rig.
About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd. is a British Columbia corporation which is in the business of oil and gas exploration and production. It has operations in Hungary through its wholly-owned subsidiary TXM Oil and Gas Exploration, and in Romania through its wholly-owned subsidiary JVX Energy Corporation. Further information about Falcon is available at www.falconoilandgas.com.
Contacts:
Falcon Oil & Gas Ltd.
Marc A. Bruner, President, Chairman & CEO
Michael K. Lam, Corporate Development North America
(416) 303-8810
Alexander Hubbard-Ford, Corporate Development Europe
+44 (0)79 8448 1541
United States - CTA Public Relations
Bevo Beaven Vice President/General Manager
(303) 665-4200
JUST picked up 2500 for a long term oil and gas hold in the portfolio. Me thinks this is a 100 stock.
Falcon Oil & Gas the next Ultra Petroleum? --
This is a great article on Falcon Oil. The Falcon CEO was the original CEO of Ultra. I purchased my first position mid January and doubled my position today. It's got a hefty market cap for a company that is not gushing gas yet...but obviously many are betting that they have found a very nice gas field.....
Best,
Dr. Link
Current website:http://www.falconoilandgas.com/index.php
Recent press release full of good news:http://www.falconoilandgas.com/releases/03-23-06.htm
An Interview with Allan Laird,
VP, Engineering and Director of Falcon Oil & Gas:
March 27, 2006
Pescod and Laird – Reunited!
The first time we got together,
the company turned out to be worth $9 billion.
Let’s see if we can focus and do something a little bigger
this time, Dave, shall we?
Dave Pescod: Why are you in Hungary? What are your projects,
what are your assets?
Allan Laird: This project resulted from a world-wide search of
over 16 different countries led by a gentleman named John Gustavson.
The search was high-graded and the list was narrowed
down and we finally came down to Hungary as what we felt was
the optimum place on the Earth to find gas. As of 2004, Hungary
became a full member of the EU, which brought political and
economic stability. We consider that to be very important as you
have ready-access to plants, pipelines, a market in Europe that is
anxious and interested in developing more domestic gas supply.
So all these factors, deregulated gas prices along with a reasonable
royalty structure, a reasonable corporate income tax, etc.,
all the economic factors are very positive in Hungary. We think
it’s a great place to search for gas. Then you couple that with
the tremendous geological potential of the Basin Centered Gas
Accumulation (BCGA) in the Mako Trough that is supported by
Dr. Ben Law. Ben of course is famous in the world of BCGA’s
because he was the guy who predicted the Pinedale Anticline all
the way back in 1982. He has worked for, I believe, over 28 years
for the U.S. Geological Survey. He has written close to a couple
of hundred technical papers and in my opinion, Ben is the number
one authority in the world on this sort of gas basin. So along
with all the other political and economic factors that we believe
are so favorable, Ben believes that we have is a tremendously
large target and that is why we are in Hungary.
Dave Pescod: How big is the field? What is the size of this target?
Allan Laird: Falcon has a 100% working interest in two concessions
that total about 576,000 acres, which is 900 sections. Or to
put it into perspective, it is 25 townships. By anyone’s standards, this is a very large land position. Our Falcon
website and the SEDAR website can lead you to the external,
third-party numbers. But we have also presented some internal numbers
from Ben Law, who is now a consultant for Falcon Oil & Gas, so
you really must consider his comments as internal company numbers.
Of our total of 900 sections, Ben has identified 205 of them that
he considers highly prospective. We have two key zones – the Szolnok
(the upper zone) and the Endrod (the lower zone). Ben is estimating
that in the Szolnok zone alone, the Potential Gas Resource in
Place is 700 BCF per section. Now Dave, you would probably say
that is an incredible number and of course it is. But to take you back
nine years to the early days when you and I first met in the Green
River Basin in Wyoming, back then we would contour maps with
maybe 100 to 200 or 300 BCF a section. So while it is comparable,
the Hungarian BCGA actually appears to be thicker and cover a
greater area than the Wyoming BCGA.
But there is another important factor to consider, as below the
Szolnok, you have that other key formation called the Endrod. And
you will see in our securities exchange filings that the third party
engineers and geological consultants actually believe that the Endrod
might even be better than the Szolnok. Ben Law estimates that
there is another 60–70 TCF of potential gas in the Endrod resource.
So to keep the math simple, let’s call it 140 TCF plus 60 TCF equals
200 TCF. Ben has further gone on record in several recent public
presentations saying that based on the drilling results so far in our
first two wells, he would now increase that estimate by 30%. So the
bottom line is that a very credible expert has identified a target which has the potential to become a world class gas field.
D.P: Can you put that in perspective versus Ultra Petroleum?
A.L: Sure and of course, when I speak of Wyoming and the Pinedale
Anticline, I am talking about the founding days when I worked for
Ultra Petroleum’s original Chairman and CEO Marc Bruner, which is
interesting because today, the same Marc Bruner is now the Chairman,
President and CEO of Falcon. Currently, Ultra is booking 6.3
TCF of proved plus probable reserves through their third party engineers and they have a market cap of about $9 billion.
D.P: This is amazing though, when you compare that to hopes of
Hungary having a 100 TCF.
A.L: Yes, but when you talk a potential resource of greater than 200
TCF in place, of course you have to apply a recovery factor to that.
You might say 20%, I might say 50% and Ultra I believe now, is pushing
up into the 80% range with continual infill drilling. If you take the
lower end of the range as 20% of 200 TCF, you still are talking of a
possibility of 40 TCF. Ultra is a very, very successful company with
about 6 TCF so you can see that the dream that we are chasing at
Falcon is something much bigger.
The difference with Ultra is that we have proved that it would
work. We went out and drilled and completed and tested wells
and years later, you can see that our initial predictions were very
accurate. Today, although Falcon has made some good progress,
it is important to realize that we have not yet proven that
our project will work through production testing. Falcon sits at a
market cap of about $1 billion, so the stock market appears to
believe that we will end up with less than 1 TCF. As an insider,
you can see that I haven’t sold any stock yet so I guess you
know that I believe that the bulk of the Falcon story is yet to be
told.
D.P: OK, very high risk with a big potential reward. What about
the men and equipment to get it done?
A.L: I try never to correct you Dave, but I have to say that sometimes you have given me too much credit at Falcon. Our company
is much more than just Marc Bruner and Allan Laird. Along
with Ben Law, our geological team is led by Dr. James Edwards,
our VP Exploration, who made some world class discoveries
with Triton. Dr. George Szabo is the Managing Director of our
Hungarian subsidiary and he is not only the former CEO of MOL,
the state oil company, he is a wonderful technical resource and a
true gentleman. We also have Gary Lavold as Project Manager, a
former Husky/Nova guy that is great at plants and pipelines.
Lyle Nelson is our Drilling and Operations Manager, with experience
in Iraq and Mongolia. We’re lucky to have Evan Wasoff as
CFO and Tony Lotito as VP Corporate Finance, because this is a
capital intensive project. So what we really have is a large team
of talented people, where many of us have worked with Marc
before and now follow his leadership into this play. As for the
other soldiers in the army, Marc has already secured Halliburton
and a lot of our key guys in our Hungarian office are contracted
to us through Halliburton. I always remember that one of the
keys to success in the Pinedale Anticline was the partnership
with Halliburton, so I’m happy to see them helping us again.
D.P: How is the financing going?
A.L: As a Canadian, I am proud that not only did Canadians
originally fund Ultra, but the first money we raised for Falcon
was about $50 million on the Toronto Venture Exchange back in
April 2005. We followed that with a second, heavily oversubscribed
offering for $100 million this month, with strong participation
from Toronto, but now also great new investors from New
York and London. We’ve also announced a letter of intent with
the Macquarie Bank and are now working with them to finalize a
$250 million line of credit. Dave, one of the things that made
Ultra not as fun as it could have been in the early years is that we
were always under-funded and it forced certain decisions upon
us.
At Falcon, you can see that Marc has taken that experience and in
less than one year, Falcon is a financially strong company with
about $100 million in the bank and he is working on another ¼
billion dollars of support for the project.
D.P: Progress to date, timing, etc.
A.L: In our recent news release, we commented on our first three
wells. The first well at P-1 was drilled on a nice 3-D structure from
seismic that we liked, but it was a 45 km step-out. I think that a lot
of people expected us to drill a dry hole. So the fact that we had
hit both the Szolnok and Endrod formations was very positive and
the sands look nice and thick. We also conservatively announced
that we saw moderate to good porosity. Now in a BCGA, you expect
to make your money from low porosity rocks so you can basically
read between the lines and say, we found something better
than what we thought we were drilling for. So it’s good news.
The data shows that it is over-pressured, saturated with gas, and
the logs show no signs of moveable water. So I’m really looking
forward to completing and testing this well later this summer. The
second well was a deep one at Mako-6 that is programmed to go
to 6000 meters. A well this deep is a four month drilling project.
What’s really neat is that we just announced that we’ve already
drilled through over 900 meters of the Szolnok formation. Now
remember, the Szolnok is the one that Ben Law likes the best -
and 900 meters is a lot of rock… heck, call it a kilometer! We also
announced that we believe that about 60% of that is sand, which
looks good. Since we’re still drilling in the Szolnok, I expect that
900 meter number to go up. So it’s all very positive and interesting
and exciting. If 60% of that 900 meters is good, then you
would have over 500 meters of sands that we would want to complete
and test. That is significantly thicker than other basins I’ve
worked on and we still haven’t drilled completely through the first
or even into the second of the two target formations.
I expect the Mako-6 well to resume drilling and reach total depth
(TD) by about the end of April. Also, our third well at the S-1 location is progressing very well and it too, looks like to will reach TD by the end of April. With three wells down, you should then expect us to spend some months designing the completions, awarding
the work, mobilizing the completion and testing equipment,
etc. This work will likely take us through the spring and with any
luck, I expect to begin the production testing in June 2006. The
drilling program should also continue and we expect to have
drilled at least five wells this year.
Dave, as always, it’s been fun talking with you. I appreciate the
opportunity to tell the Falcon story and thank you and your readers
for your interest and support.
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