• Mature gas field previously operated by MOL on border with Romania

• Remaining GIIP potential of 22bcf with identified undeveloped discoveries

• Production commenced August 2008 at 4 mmscfd

• 3D seismic planned to validate undeveloped prospects and
   accelerate incremental production to utilise new facilities

• Multiple tight gas reservoirs on border with Slovenia operated by MOL with
   pilot re-development planned

• Multiple horizontal re-entries to increase recovery

• Pilot on Bajcsa field to increase recovery from 28% to near 50%

• Once proven approach to be repeated on analogue fields
 

A Miocene discovery which produced 3.5 bcf in 1980’s, has remaining 19.4 bcf potential in Miocene and additional 2.3 bcf in Pannonian sands.  Re-development of the field is centred on the Pen-104 discovery which commenced first gas production in August 2008 at 4mmscfd.

New gas gathering and processing facilities at the Pen-104 well-site have been installed with connection to the nearby gas transportation grid operated by MOL.  All sales gas are handled by MOL.

For development capex of €1.1 million, Pen-104 gas production will generate post tax venture revenues of P50 €4 million within two years. Nearby undeveloped wells, once connected will generate a total P50 production of 7.6 Bcf and €25.6 million cash-flow. Pen-104 production revenue shall fund a 3D seismic program at end 2008 to identify additional developments for maximising production through facilities.
 

Zala Basin agreement (50/50) between MOL (Operator) and Joint Venture Partners to enhance gas production of multiple tight gas fields.  MOL provides gas gathering, treatment and export facilities with the Joint Venture Partners responsible for the enhanced recovery development.

A phased development approach is planned to validate the incremental recovery methods and to increase chance of success in deeper reservoir stacks.  The recovery method re-develops each operating well with new horizontal completions in each reservoir stack. Once the development approach is proven, other reservoirs have been identified in the Zala Basin for repeated development through a MOL option agreement.

The enhanced recovery development is to be piloted on the Bajcsa gas field, a seven stacked Lower Pannonian tight gas sandstone reservoirs with total GIIP 59 bcf.  The reservoirs have been partially depleted (28% GIIP) via 23 producers with evidence of pressure recharging in developed reservoirs.

Multiple targets in all reservoir stacks have been identified to increase recovery to near 50% GIIP (~20% GIIP incremental recovery) with initial forecast rates up to 3.5 mmscfd capable of producing up to 3 bcf gas each over a period of 5 years.