The sidetrack well drilled the target reservoir sands as planned, was tested at around gross 2.5 mmscfd and immediately connected to the existing production and transportation infrastructure for gas sales production.
The total resources for the Peneszlek Development Area have also been revised. The study by Tracs International assessed five possible drilling locations in the Peneszlek Development Area and has increased the GIIP and contingent resources.
The revised resources are:
Gross unrisked mean GIIP from the five possible drilling locations is increased from 11.27 bcf to 14.65 bcf Gross unrisked mean contingent gas resources is increased from 2.57 bcf to 4.87 bcf
Gross unrisked mean prospective gas resources remain the same at 4.65 bcf.
The PetroHungaria kft joint venture is currently planning and permitting the next well in the schedule and shall announce in due course the development plan for all remaining Penészlek Development Area resources.
David Lenigas, executive chairman, commented:
LGO are very pleased to report the stabilised production rate for Pen104 as well as an increased resources assessment for the East Hungary asset.
The Penészlek Development Area is a key multiple resources asset which shall be considerably expanded during 2009 and we look forward to reporting further production increases and sustainable gas sales cashflows during the year.
