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Falcon Oil & Gas Ltd. Provides Operational Update on Mako-6 and Magyarcsanad
BUDAPEST, Hungary, June 6, 2007 /PRNewswire via COMTEX News Network/ --
Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or the "Company") has issued an operational update as part of its ongoing commitment to public disclosure announcing the following:
Falcon has resumed testing operations on the Mako-6 well in the lowermost part of the Basal Conglomerate, after fracture stimulating ("fracing") this interval in April 2007 with 79,000 pounds of proppant and 3,100 bbls of frac fluid. Prior to this current testing operation, the Company opened the well for flow, had gas flow to surface immediately and, due to the presence of manageable levels of H2S, the well was shut-in to wait for the correct equipment to flow the well safely. The well was then shut-in with frac fluid load still remaining for over a month.
The well is currently being tested through perforations from 5,326 to 5,328 meters in the Lower Basal Conglomerate. The fracced interval being tested is from 5,279 meters to 5,365 meters, a total of 86 meters; 69 meters Basal Conglomerate and 17 meters Synrift. The Basal Conglomerate is 273 meters thick from 5075 meters to 5348 meters. This remaining 204 meters of Basal Conglomerate will be tested following the completed analysis of results from current test. The Company is encouraged with the initial gas shows from this test and believes the gas shows will remain constant or will improve in the upper part of the Basal Conglomerate where rock quality increases and sand packages thicken. Falcon intends to announce details on the gas shows from this test after flow-back of frac fluid and bottom sediment has been completed.
On June 3, 2007, the test was resumed with an 8/64" choke. Within 8 hours of opening the well and recovering 208 bbls of frac fluid, gas surfaced in burnable quantities, which are too small to measure. After flow testing the well for 29 hours and recovering approximately 800 bbls of the frac fluid, it was noted that the flow-back was producing greater than expected quantities of bottom sediment. On June 4, the well was opened up to a 12/64" choke to assist in the clean-up. The well continued to produce gas in burnable quantities through the test separator throughout the day. On June 5, the well experienced a partial to complete tubing plug, which temporarily caused the well to cease flowing. After three hours of no frac fluid recovery, the well unloaded large quantities of bottom sediment, resulting in significant quantities of gas flow in and an 8-foot to 10-foot flare and increased flowing tubing pressures. Falcon will continue to flow test the well, recover as much of the frac load fluid as possible, ensure the tubing and perforations are free and clear of any obstructions, and, if required, assist the well bore unloading process via coil tubing-nitrogen. About two-thirds of the frac load water has been recovered.
Preparations to fracture stimulate the Magyarcsanad well are underway. Falcon is currently rigging up and will commence the well intervention and testing program in the coming weeks. Falcon is engineering a two stage frac that is designed to treat the effective Endrod interval through the existing perforation at 4,060 meters and introduce 4 sets of new perforations. The new perforations will straddle the existing perforations (2 sets above and below). The combined two stage frac will consist of approximately 350,000 pounds of proppant. The treatment is designed to stimulate the entire Endrod formation that is behind casing with a total effective frac height of nearly 300 meters. It is anticipated actual testing operation will commence the end of June.
About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd. is a British Columbia corporation which is in the business of oil and gas exploration and production. It has operations in Hungary through its wholly-owned subsidiary TXM Oil and Gas Exploration and in Romania through its wholly-owned subsidiary JVX Energy Corporation. Further information about Falcon is available at http://www.falconoilandgas.com..
Contacts: Falcon Oil & Gas Ltd. Marc A. Bruner, President, Chairman & CEO Weber Shandwick Worldwide Peter Duda +1 (212) 445-8213
Falcon's discovered resources are not reserves. Only those quantities of oil and gas that are anticipated to be economically recoverable from discovered resources are classified as reserves. Until such time as Falcon's discovered resources are proven to be reserves, there is a risk that Falcon may not achieve ongoing operations from which it may generate significant revenue.
In the interests of providing Company shareholders and potential investors with information regarding the Company, including the Company's assessment of its and its subsidiaries' future plans and operations, certain statements included in this press release may constitute forward-looking information or forward-looking statements (collectively, "forward-looking statements"). All statements contained herein that are not clearly historical in nature are forward-looking, and the words "anticipate", "believe", "expect", "estimate" and similar expressions are generally intended to identify forward-looking statements. Similarly, forward-looking statements in this press release include, but are not limited to anticipated developments of the Company's drilling project in Hungary and the timing thereof, the Company's drilling project in Romania and the timing thereof, capital investment levels and the allocation thereof, pipeline capacity, government royalty rates, reserve and resources estimates, the level of expenditures for compliance with environmental regulations, site restoration costs including abandonment and reclamation costs, exploration plans, acquisition and disposition plans including farmout plans, net cash flows, geographic expansion and plans for seismic surveys. In addition, please note that statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described can be profitably produced in the future. Such statements represent the Company's internal projections, estimates or beliefs concerning, among other things, an outlook on the estimated amounts and timing of capital expenditures, anticipated future debt levels and incentive fees or revenues or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements are only predictions. Actual events or results may differ materially. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company and the foregoing list of important factors is not exhaustive. These forward-looking statements are made as of the date hereof disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. Company shareholders and potential investors should carefully consider the information contained in the Company's filings with Canadian securities administrators at http://www.sedar.com before making investment decisions with regard to the Company.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Falcon Oil & Gas Ltd.
Marc A. Bruner, President, Chairman & CEO of Falcon Oil & Gas Ltd.; or Peter Duda of Weber Shandwick Worldwide, for Falcon Oil & Gas Ltd., +1-212-445-8213
http://www.falconoilandgas.com
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