natural gas overview hungary 2006 - unece · natural gas overview hungary 2006 united nations ......

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NaturalNatural GasGas OverviewOverviewHungarHungary 2006y 2006

UNITED NATIONSUNITED NATIONSGenevaGeneva

2323--24 24 JanuaryJanuary 20020077

17th Session17th Session ofof Working Party on GasWorking Party on Gas

Tamas Tamas KorosiKorosiSeniorSenior LeadingLeading AdvisorAdvisor

HUNGARIAN ENERGY OFFICEHUNGARIAN ENERGY OFFICE

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13,1%

30,2%0,8%

44,7%

11,2%

solid crude oil and products LPG natural gas primary electricity

RoleRole ofof NaturalNatural GasGas inin HungaryHungary

PrimaryPrimary EnergyEnergy SupplySupply

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131 66

5 842 93

610

56

110

413

38

1470

1549

163

017

22 1841

200

321

90

2342 24

7225

55

266

027

50

298

53

06

63

148

322

33

295

33

413

412

0

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1000

1500

2000

2500

3000

3500

400019

70

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1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

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0 p

csHouseholdHousehold ConsumersConsumers

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NationalNational DistributionDistribution NetworkNetwork::7979 795 795 kmkm

NumberNumber ofof SettlementsSettlements:: 28287171

SettlementsSettlementsConnectedConnected::

91,291,2 %%

Gas DistributionGas DistributionH

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DependencyDependency onon GasGas inin EUEUH

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Source: BP Statistical Review, 2005

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GasGas TransmissionTransmission SystemSystemH

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UndergroundUnderground GasGas StorageStorage

Deliverability: 2.0 MMCM/d Nominal cap: 200 MMCM Cushion gas: 310 MMCM Injection cap: 1.2 MMCM/d

Deliverability: 2.5 MMCM/dWorking gas: 200 MMCMCushion gas: 310 MMCM Injection cap: 1.2 MMCM/d

Total withdrawal capacity:Total working gas: capacity:Total cushion gas: Total injection capacity:

Hajdúszoboszló

Kardoskút

Maros -1

Zsana

Pusztaederics

47.5 MMCM/d3,500 MMCM4,700 MMCM

26.4 MMCM/d

Daily withdrawal cap: Working gas Cushion gas: Injection cap:

2.7 MMCM/d330 MMCM347 MMCM

2.2 MMCM/d Daily withdrawal cap:Working gas:Cushion gas:Injection cap:

21 MMCM/d 1,340 MMCM 1,660 MMCM

12.9 MMCM/d Daily withdrawal cap:Working gas:Cushion gas:Injection cap:

2.1 MMCM/d150 MMCM250 MMCM

1.1 MMCM/d

Daily withdrawal cap:19.2 MMCM/dNominal cap: 1,400 MMCMCushion gas: 2,133 MMCMInjection cap: 9.8 MMCM/d

Daily withdrawal cap:19.2 MMCM/dWorking gas: 1,480 MMCMCushion gas: 2,133 MMCMInjection cap: 9 MMCM/d

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TotalTotal CapacitiesCapacities of of thethe GasGas NetworkNetwork[MMm3/day]

* Enough to cover winter dailyconsumption down to -15 °C daily average temperature (no need to interrupt)

100,1*TOTALTOTAL

47,5UGSUGS

5otherother

25SourceSource: : RussianRussian

3030IMPORT IMPORT BEREGSZÁSZBEREGSZÁSZ

6Russian

3Source: Western

12,1IMPORT HAG

10,5DomesticDomestic productionproduction

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Natural Natural GGas as SSupplyupply 20020066

2.67Western Direction :

8.75 Eastern Direction:

11.42 Imports (diversified):

2.82 Domestic Production:

14.24 National Consumption:

bcm

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NaturalNatural GasGas SourcesSources 20062006H

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Imports ~ 80 %Western entry: via HAG

Gas from Russian andWestern-European suppliers

Eastern entry: via BrotherhoodGas from Russian andother FSU suppliers

Domestic production ~ 20 %20,2%

60,5%

19,3%

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Seasonal variation:–Avg. summer (June- August)

consumption: 16.6 MMcm/d–Avg. winter (December- Febr.)

consumption: 65.9 MMcm/d–Maximum winter consumption:

(23rd Jan 2006) 89.1 MMcm/d

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DevelopmentDevelopment ofof GasGas MarketMarket

9.7

174

16

67

2006 Dec.

8.66Share of free market %

5223Eligible Customers stepped out pcs

1410Traders Licensed pcs

6767Legal market opening %

2005 Dec.

2004 Dec.

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New New GasGas ReservesReserves ExploredExplored inin HungaryHungary

• In January 2005 Canadian FALCON Oil & Gas Companyacquired licenses to explore and drill the Mako Trough inSoutheastern Hungary

• They took a complete 3D seismic program and drilled five wells, including Mako-7 which is the deepest well at 19,862 feet (6054 meters) in Hungarian history.

• The exploration activity indicated the presence of a basin-centered gas accumulation (BCGA) in the syncline, below a depth of 3200m

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Falcon Falcon LicensedLicensed ExplorationExploration AreasAreas

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MakoMako TroughTrough andand OffsettingOffsetting FieldsFields

Pusztaföldvár

Algyö

Falcon has acquired oil and gas exploration licenses coveringan aggregate of 2328 sq km in the Makó Trough area ofsoutheastern Hungary

Two geologicplays:

• Conventional Oil and Gas• Basin Centered Gas Accumulation– BCGA

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MakoMako TroughTrough CrossCross SectionSection

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AAssessmentssessment of the of the PPotentialotential RResourceesourcess

• The Scotia Group, (a highly respected international oil and gas advisory service) assigned the probabilistic estimation of technically recoverable resources of the Mako Trough Pannonian Basin Gas Accumulation:

116.1 tcf54.9 tcf21.8 tcfTechnicallyRecoverableResource *

P10 (10%)

P50 (50%)

P90 (90%)

ProbabilityGreaterThan

* tcf = trillion cubic feet1m3 = 35 cubic feet

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MakoMako TroughTrough –– A A GiantGiant GasGas FieldField

• TXM Oil and Gas Exploration Ltd. Falcon's wholly owned subsidiary submitted the Closing Report of itsexploration activity in Mako Trough, to the Hungarian government authorities in October 2006.

• On 21 December 2006 Hungarian GeologicalSurvey approved the potential recoverable volumes of gas within the Mako Trough BCGA:

600 BCM

• A hydraulic frac will be operated on Mako – 6 well atthe end of January 2007

More information: www.falconoilandgas.com

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ThankThank youyou forfor youryour kindkind attentionattention!!

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