VANCOUVER, Sept. 12 /CNW/ -- Falcon Oil & Gas Ltd.
(TSXV: FO) announced today the preliminary results of its first Romanian
coalbed methane well and provided an update of its deep gas project in
Hungary.
Romania
Falcon's Lupeni South-1 well in the Jiu Valley Coal Bed Methane Concession
in Romania has reached the primary target of Coal Seam #3. There were
numerous gas shows in Seam #3 and also in the secondary targets in Seam #13
and Seam #14. The gross thickness of Seam #3 is approximately 21 meters, over
an interval from 309 to 330 meters.
The core analyses and preliminary desorption measurements in the field
indicate the potential presence of coalbed methane in multiple horizons but
give no indication at this time of the potential gas production rates or
recoverable reserves to be expected.
Based on the gas shows and core information, Falcon and the other working
interest owner in the prospect, Pannonian International, Ltd., a wholly-owned
subsidiary of Galaxy Energy Corporation, have determined to enlarge the cored
section to run casing to total depth and to commence completion and testing
operations.
Falcon has earned a 75% working interest in the 21,538-acre Jiu Valley
coalbed methane concession, while Pannonian retains a 25% working interest.
"We are pleased with the initial results from our first well in Romania,"
stated Marc A. Bruner, President, CEO and Chairman of Falcon. "The drilling
of this well confirms our geological model, which was derived from our
research into the Romanian coal mining records. The three main coal seams
were encountered at the depths and thicknesses that were predicted by our
geologists. We also have some initial field measurements of the gas content
of the Romanian coals that are encouraging.
"The next step for us is to enlarge the hole to run production casing. We
have engaged Schlumberger's top team of coalbed methane experts in Pittsburgh
to design and supervise the hydraulic fracture stimulations. While the
subsequent completion and testing operations will ultimately determine the
potential of this particular well, we believe we're off to a great start in
Romania."
Hungary
Falcon has conducted and interpreted a 3D seismic survey over a 16 square
kilometre portion of the Tisza Licence area. In addition, it has purchased
and reprocessed an additional set of 3D seismic data covering the southern
portion of the Tisza License. Based on the new seismic data, Falcon has
finalized the first three drilling locations in Hungary. Falcon will drill a
deep well on the Mako License at the Mako 5 location and two intermediate
depth wells-the Szekkutas well on the Mako License, and the Pusztaszer well on
the Tisza License.
Marc A. Bruner commented, "The 3D seismic data has greatly increased our
understanding of the geology in this massive basin. By collecting and
interpreting the 3D data over the summer, we have come up with multiple
drilling locations, three of which will be drilled in our fall program. We
have a large inventory of premium casing and two drilling rigs under contract,
so we're ready to start drilling. Our operations group plans to start
building the first of the surface locations for these wells within a week,
with the goal of having both rigs moved in and working in October. These are
exciting times for Falcon."
Falcon Oil & Gas Ltd. is a Canadian corporation, which is in the business
of oil and gas exploration and production. It has operations in Hungary,
Romania and Canada.
Contacts: Falcon Oil & Gas Ltd.
Marc A. Bruner President, CEO and Chairman
Allan D. Laird Director (303) 803-3646
Contacts: CTA Public Relations
Bevo Beaven Vice President/General Manager
(303) 665-4200
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responsibility for the adequacy or accuracy of this release. The TSX Venture
Exchange has in no way passed upon the merits of the above-described
transaction and has neither approved nor disapproved the contents of this
press release.
