Kútvölgy-1 is the first of a three well drilling and testing programme fully funded by NAFTNA INDUSTRIJA SRBIJE JSC (NIS), to evaluate the gas potential of the Algyo Formation in Falcon’s Mako trough permit.
The testing objectives are to determine reservoir quality and gas productivity from the target Algyo formation encountered in Kutvolgy-1. Testing operations are anticipated to take three months.
Philip O’Quigley, CEO of Falcon said, "We are pleased to confirm that well testing operations on our Kútvölgy-1 well have commenced. Technical evaluation of the well results obtained so far indicate possible gas pay zones in the Algyo formation that will be tested in the coming weeks."
The Algyo is a relatively shallow play between 2,300m and 3,500m. A number of Falcon wells have been drilled through the Algyö in recent years, some of which encountered gas shows, but to date no well has ever tested the play concept at an optimal location as previous wells targeted deeper intervals of up to 6,000m.
Multiple Algyo prospects have subsequently been identified by Falcon through extensive AVO analysis. The ongoing exploration drilling program with NIS is targeting three separate high-graded prospects.
An independent study by RPS Energy published in January 2013 included for the first time Prospective Resource recoverable volumes attributable to the shallow Algyo Play.
According to the RPS report, eight of the ten prospects identified by Falcon contain 568 BCF of prospective recoverable gas resources, each with a 10% Geological Probability of Success (GPoS).
