BY OGJ editors
HOUSTON July 2 -- Pogo Producing Co., Houston, said development of the Kenderes gas-condensate area on the Szolnok Block in Hungary is on hold—at least temporarily—because a delineation well encountered "very limited hydrocarbon shows."
The Orm-K-3 well tested the size and commerciality of the Kenderes discovery area, and so far Pogo has yet to establish enough of a hydrocarbon accumulation to justify the infrastructure expenditures needed for production (OGJ Online, Dec. 4, 2003).
Final well logs still were being analyzed in early July. Absent further encouragement from the ORM-K-3 well results, Pogo anticipates a second-quarter writeoff of $17 million on the four Kenderes wells drilled as of July 2.
But the company noted that it has not given up on Hungary. Pogo planned to spud the Orm-K-5 well by mid-July.
In Hungary, Pogo holds 100% interest on its 645,000-acre Szolnok license and its 119,000-acre Tompa license (OGJ Online, Apr. 12, 2004). It also holds 3D data in the Koros area on the southern Szolnok Block.
