DualEx Energy International says that its subsidiary PetroHungaria kft, has successfully tested and completed the PEN-101 well in the Penészlek area of the Nyírség exploration permits in eastern Hungary.

The PEN-101 well has been completed in a Miocene gas bearing reservoir within a structure defined on the 3-D seismic acquired in 2008. Initial production rates achieved during preliminary testing exceeded 1.0 MMscfd (28,300 m3/day), and productivity is expected to be improved in the coming days, by the use of a small scale acid stimulation, similar to that used with good results on the PEN-105 well.

The PEN-101 well is located at the site of the production facilities that will be used to produce both it and the PEN-105 gas discovery. The PEN-105 well is expected to commence production during the week of March 15th 2010, following the removal of the rig from the location and the granting of operating approval for the facilities by the Mining Authority.

The rig will then move to the PEN-104 location to continue the testing of the PEN-104AA well and, subsequently, will move to and continue drilling at the PEN-106 well. The PEN-106 well targets a structure that is similar to that proven by the PEN-105 well.

The Penészlek project is proving to be a successful investment for DualEx, which has been further enhanced by the relinquishment of Leni Gas & Oil's ('LGO') interest in the project (announced by LGO on 5 March 2010), resulting in the current project partners having gained a further interest at no cost.

Garry Hides, DualEx's President and CEO, commented, 'We are pleased with the PEN-101 well results and the resumption of production in the coming days. With our increased interest in this project, we look forward to the upcoming drilling of PEN-106, which shares prospect attributes with both PEN-105 and 101.'

Tags: DualEx Energy International