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Orion veröffentlicht ebenfalls ein Update: Falcon Oil and Gas Ltd. (FO, TSX-V - C$2.28) 12-Month Target: C$5.63 Rating: Overweight (Speculative) Potential Return: 147% What Happened? In response to the recent fluctuation in the price of Falcon's common shares and the increase in trading volume, the company provided an update on its activities in Hungary. * Delineation wells: the Pusztaszer-1 (P-1), Szekkutas-1 (S-1) and Magyarcsanad-1 (M-1) wells are currently being tested and evaluated. The primary purpose of the delineation wells is to test the aerial extent of the Basin Centred Gas Accumulation (BCGA). * Deep wells: completion work has commenced on the Mako-6 deep well but no zones have been perforated to date. Falcon has drilled and cased the offsetting Mako-7 well in the centre of the BCGA and is preparing to log the well. * BCGA development plan (Szolnok Development): it is currently estimated that the Szolnok Formation contains 77% of the 54.9 Tcf of gas assigned to the Mako Trough (based on a P50 probability). The company plans to drill multiple wells to the base of the Szolnok Formation (3,000 to 4,500 metres) in the central portion of the trough. The first of these wells, the Mako-4 well, is currently drilled to a depth of 1,012 metres, in an area that is clearly inside the hydrocarbon-generating area of the BCGA. What Does it Mean? * The delineation wells have shown mixed results. The P-1 and S-1 wells both showed encouraging results in the BCGA, but did not test significant quantities of gas in the underlying basement sediments. Up to 10 more zones in the BCGA in the S-1 and one more zone in the BCGA in the P-1 will need to be tested. The M-1 well has not been perforated; it has been cemented but the cement is breached and hydrocarbons (gas and condensate) are entering the well. The company plans to test the well in the upcoming months. * Overall, the BCGA in the Szolnok and Endrod formations show positive indications of hydrocarbon saturation but the economics of producing the wells cannot yet be determined. We do not expect definitive data on flow rates for at least three months. * As a result of drilling activity this quarter, Falcon's cash balance has been reduced to $US110 million from $US185 million in Q3/06. Since September 30, 2006, the company drilled the Magyarcsanad-1 and Mako-7 wells, tied-in the Mako-6 well to MOL facilities, shot additional 3-D seismic and started the well completion and testing program on the P-1, S-1, M-1 and Mako-6 wells. Falcon believes that its current cash position is more than sufficient for the exploration phase of its operations, including the testing program and the Szolnok program. * We reiterate our Overweight (Speculative) recommendation and C$5.63 target price. |
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| aus der Diskussion: | FALCON - ALLE DATEN, ALLE FAKTEN |
| Autor (Datum des Eintrages): | dontsushi (13.02.07 21:39:35) |
| Beitrag: | 23 von 47 (ID:27691369) |
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