Hungary: Shallow Algyo exploratory drilling proposed

By OGJ editors

Naftna Industrija Srbije JSC, the Serbian oil and gas company owned 56% by JSC Gazprom Neft, will drill three exploratory wells in the shallow Algyo play in Hungary’s Mako trough on lands held by Falcon Oil & Gas Ltd., Toronto.

Falcon to be fully carried on the drilling and testing costs. The first well is to be spudded in the last quarter of 2012. NIS will earn 50% of the production revenues from shallow production if successful. Falcon will retain 100% interest in deeper zones in the Deep Mako trough.

A number of Falcon wells have been drilled through the Algyo, at 2,300-3,500 m, in recent years but none has tested the play concept because all of the wells targeted intervals as deep as 6,000 m. Multiple Algyo prospects have subsequently been identified through extensive AVO analysis. NIS will target the three top ranked prospects.

The transaction remains subject to a favorable ruling of the negotiated tax and accounting treatment by the Hungarian Ministry of Finance.

Falcon noted that a gas processing plant at giant Algyo oil and gas field 5-23 km away would benefit project economics and the timeline for monetizing any discovery in the Algyo play.

Related Articles

BLM to offer 270 tracts in NPR-A lease sale

10/13/2014 The US Bureau of Land Management will offer oil and gas leases within the National Petroleum Reserve-Alaska (NPR-A) at a sale on Nov. 19 in Anchora...

BHI: Permian drives gains in weekly, yearly US rig count

10/10/2014 The US drilling rig count gained 8 units to reach 1,930 rigs working during the week ended Oct. 10, driven in large part by growth in the Permian b...

Yinka-led group takes FID on Aje oil field offshore Nigeria

10/10/2014 A group led by Lagos-based independent Yinka Folawiyo Petroleum Co. Ltd. have taken a final investment decision on developing the $220-million firs...

Lukoil commissions Imilorskoye field in West Siberia

10/08/2014

OAO Lukoil reported commissioning of Imilorskoye field in western Siberia.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected