Falcon confirms spudding of second well at Mako Trough in Hungary

Falcon Oil & Gas has confirmed that the second of three exploration wells at the Mako Trough in Hungary has been spudded, but the first well failed to show commercial rates of hydrocarbons.

The Besa-D-1 well was spudded by Falcon’s partner Naftna Industrija Srbije (NIS) to identify the gas potential of the Algyo formation at a depth of around 3,000m in the Mako Trough.

Falcon said that the well testing operations on the first well, Kutvolgy-1, are now completed with improved recovery rates from certain intervals, but well production did not meet commercial rates, allowing it to discontinue testing.

The company is now focused on Besa D-1 and its partner on the site NIS continues to study the hydrocarbon potential of the entire region including the Deep Mako play.

Falcon Oil & Gas CEO Philip O’Quigley said: "I look forward to sharing the results of the second well and building on the knowledge of what we have learned from the testing of Kutvolgy-1 with the market in due course."

Falcon is engaged in the acquisition, exploration and development of conventional and unconventional oil and gas assets, with the current portfolio spread between Australia, South Africa and Hungary.

The company’s subsidiary TXM holds the 35-year Makó Production Licence covering an area of around 245,775 acres located in the Makó Trough, part of the greater Pannonian basin of central Europe.

The Makó Licence is located around 10km from the MOL Group owned and operated Algyö field, which has produced around 2.5 trillion cubic feet and 220 million barrels of oil to date.