OilVoice - DualEx Energy Provides Penészlek Area Operations Update

DualEx Energy Provides Penészlek Area Operations Update

Wednesday, February 10, 2010

DualEx Energy International Inc. announces 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.

DualEx's original working interest in the Penészlek project was 37.5%, however Geomega kft, one of DualEx's partners in the project, has requested that the PetroHungaria joint venture convert Geomega's working interest in the 101 and 106 wells to a lesser carried interest; this has been agreed among the partnership and the details, along with a revised equity structure for the joint venture, will be announced in the coming weeks.