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.