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Falcon Oil & Gas Ltd. Provides Interim Summary and Operational Update
Falcon Oil & Gas Ltd. Provides Interim Summary and Operational Update.
About this update from Falcon Oil & Gas Ltd.
[{"type":"text","content":"\n\n\n\nBUDAPEST, Hungary, Feb. 12 /CNW/ -- Falcon Oil & Gas Ltd. (TSXV: FO), in\nresponse to the recent fluctuation in the price of Falcon Oil & Gas Ltd.'s\n(\"Falcon\" or the \"Company\") common shares and the increase in trading volume,\nannounced that while there have been no new material developments, it has\ndecided to provide the following interim summary and operational update\nregarding its drilling program in Hungary.\n\n\nAs a result of the preliminary information which Falcon has gathered over\nthe last several weeks of testing, Falcon continues to be highly optimistic\nabout its Mako Trough project, and the commercial viability of this 54.9 tcf\nContingent Resource (estimated recoverable portion)(1)(2). (The 54.9 tcf\nfigure is based on a P50 probability, as described in the Scotia Report, dated\nSeptember 15, 2006, previously filed on Sedar at www.sedar.com.) These\ninterim results are summarized in the technical review below. Falcon\nemphasizes that these results have so far confirmed all of the expectations\nand estimates previously announced publicly, and that it has achieved its\noriginal objectives first defined in 2005:\n\n\n* Conduct a continuous drilling program on the Tisza and Mako Licenses;\n* Identify the primary target zones for hydrocarbon development;\n* Confirm and define the over-pressured gas cell of the Mako Trough;\n* Shorten the lead time to first production from the Mako Trough.\n\nFalcon further points out the following:\n\n\n1. The Delineation Wells: The Pusztaszer-1, Szekketas-1, and\nMagyarcsanad-1 wells (the \"Delineation Wells\") are currently being tested and\nevaluated. As described in detail in the Operational Update below, we have\nencountered significant hydrocarbons in the Delineation Wells. The primary\npurpose of the Delineation Wells was for these wells to serve as a benchmark\nin identifying the boundaries of the Basin Centered Gas Accumulation (\"BCGA\")\nand to aid the Company in understanding the mechanics of the BCGA system\nwithin the Mako Trough.\n\n\n2. Established Existence of BCGA: The original purpose of the\nDelineation Wells and the overall work program to date -- to prove the\nexistence of the BCGA -- has been completely accomplished with the Hungarian\ngovernment's formal written acknowledgement and acceptance of the existence\nand large extent of the BCGA...