DualEx Energy International says that its subsidiary, PetroHungaria kft, has commenced the drilling of the PEN-101 well in the Penészlek area of the Nyírség exploration permits in northeastern Hungary.

PEN-101 is targeting a Miocene volcaniclastic zone within a structure defined on 3-D seismic conducted by DualEx and its partners in 2008. This well is planned to be drilled to a total depth of approximately 1500 metres, and is expected to take about a month to drill and test. The PEN-101 well location is the site of the production facilities that will be used to produce the PEN-105 gas well, drilled in August of 2009, and the pipeline that connects PEN-105 both to the facility and to the export pipeline is now complete and awaiting pressure testing. Due to the close proximity of the production facilities to the PEN-101 drilling rig, for safety reasons PEN-105 production will not commence until drilling operations are finished in March. PEN-101, if successfully completed, can be immediately connected via the same facility to the export pipeline.

After the rig has completed the PEN-101 well, it will proceed to either the PEN-106 well, another Miocene prospect, or move to the PEN-104 location to continue the testing of the PEN-104AA sidetrack that was suspended in December 2009. For the PEN-104AA testing operations, the decision to use the drilling rig, rather than a dedicated workover unit is primarily due to operational restrictions on the part of the drilling contractor.

Tags: DualEx Energy International