No gas! There is gas in the Makó trough! + Video

Touring the Hungarian Texas

http://www.ingatlanmagazin.com/read/11429?h

2009.11.28. 13:48

On our trip to the so-called Makó trough, György Szabó, director of the Falcon-TXM spoke optimistically about the exploitability of the gas resource that lays dormant 6000-meter deep under the surface. The quality of the gushing gas is very good, the technology is given, but further research and "fine tuning" is needed. Now at newer drilling points, they are examining rock structures and hydrocarbon components. Large-scale production is planned in 2012.

Optimists in the November fog

"While there are difficulties, there is no reason to give up our optimism." - said György Szabó Director of Falcon-TXM on this Makó fieldtrip, to let the press get a glimpse of the action at the well that was drilled not too long ago. According to experts, there is an estimated 1400-4500 billion cubic meters of natural gas 6000 meters underground in the Makó trough. This could ensure Hungary's gas supply up to 100 years. However, a month ago word got around that the test-drilling at the Földeák-1 well was fruitless; therefore, ExxonMobil is abandoning the research for unconventional hydrocarbons in the Makó trough. Then Falcon responded that these results are not characteristic of the hydrocarbon potential of the entire Makó trough. "ExxonMobil does not move from the Hungarian market, but only temporarily suspends its activities" - said the director at the Óföldeák press conference. Earlier, the whole world learned of this village as the new Hungarian Dallas, but for now there are no cowboy hats, instead only the 13 century fortified church and three beautiful mansions.

They want to produce

Then the Szolnok Mining Bureau’s previous statement was brought up; according to the statement the production license may be withdrawn in 2012. This statement is very puzzling to Falcon-TXM, because they already paying 12% mining taxes, in other words the extraction of hydrocarbons already going on, and that is why the connecting pipe line was built to the Algyő distribution station. Falcon has 35 years concession rights to mining activity, of which 15 years already passed, since the research was taken over from a Swedish company called Gustafson by Falcon, however it is extendable by another 17.5 years. In 2007, after investing $300 million, the project reached the stage where the existence and the size of resource was revealed, based on that a production licence was awarded to Falcon. According to the mining law, production must start within 5 years from the date the production licence was granted, or have to negotiate for extension with the Ministry. However, the mining taxes may go higher. The concept of extraction of the unconventional resource sites are so new, that the 1993 mining law in section 49 and only in the last 1-2 years mentions it as a "non-conventional origin hydrocarbons extracted with special procedure." That is to say, when Falcon received the production licence, even the law had not fully understood the concept of an unconventional site.

We have the technology

The Falcon and ExxonMobil, MOL has established a consortium of partnerships. The extraction of unconventional hydrocarbons requires special technology, expertise, and above all requires a lot of venture capital. György Szabó confirmed that plans calls for large scale production for 2012. The Makó gas could only be released by hydraulic strata-fracturing because of the poor permeability of the rocks the hydrocarbon can not move; therefore it needs to be released from the rocks.

The technology is available, which already have been applied in the U.S. Rocky Mountains, but due to the difference in geological structure, and major differences in pressure and temperatures “fine tuning" is required. In 2008, half of U.S. domestic natural gas production was produced by the new technology.

Difficulties

The technology is advancing from day to day. Where are those years from the late sixties, when 100 miles from Denver, the equivalent explosive power of 4 Hiroshima atomic bomb was detonated thousands of meters deep to unlock the hydrocarbons. "However, in the Makó trough area there are three main problems we have to find the solution for." - György Szabó explained. On the one part, the critical importance to the extraction is the selection of proper fracturing fluids; therefore further tests should be carried out.

On the other hand, a large amount of energy input, in the order of 10-50 thousand HP hydraulic performance is required. Instead of "Caves", extensive micro fractures and propants are needed to keep those micro fractures open. Thirdly, particularly important the higher resolution clarification of physical parameters of the hydro carbon system, the so-called rock matrix tension condition. "The solutions to these problems have a key importance on the cost effective extraction of the significant quantity hydrocarbons in the Makó trough. These are the challenges that require innovative basic and applied research, for which the costs are too difficult to estimate today."

Will it be worth it?

In addition, the question was raised whether from the 5000-6000 meters depth the hydrocarbon production can it be economical. To the question György Szabó responded that if the world oil price is above $50 a barrel, then we can say it will be economical. Beside this, the drilling costs must be reduced significantly, currently drilling one well cost 40-50 million dollars. The Falcon-TXM leader is also optimistic, because in the experts estimation the European Union's gas consumption in the long term, 20-30 years, unequivocally will increase. Taking into account the energy structure in the short-term, it is unlikely that the gas would be substituted. The gas is projected to provide 80 years of secure supply.

Tibor Farkas