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CALGARY, June 12 /CNW/ - DualEx Energy International Inc. (TSX-V: "DXE")
announces today that the drilling of its VAM-1 exploratory well in the
Pannonian Basin of northeast Hungary has been completed and despite a gas show
from a short duration openhole test in the target Miocene formation, DualEx
and its partners have decided to abandon the well.
The well is the second of two option wells drilled under the Company's
farm-in on PetroHungaria kft of Budapest. DualEx has now completed earning its
37.5% working interest in over 600,000 acres within the Nyirség North and
South Exploration Permits, which include the petroleum and natural gas rights
at two recompletion candidates in the Penészlek area, PEN-9 and PEN-12, which
successfully tested gas from the Miocene, but were never tied-in. Each of
these wells currently stands suspended. All operations on the Nyirség Blocks
will now be funded on a straight-up basis, with DualEx paying 37.5%.
Garry Hides, DualEx CEO, commented: "Although we obviously would like to
have made a commercial gas discovery, the fact that we had good gas shows in
the Miocene is encouraging, and will play an important role in how we plan the
exploration effort in this area going forward. Additionally, and importantly,
this well completes our earning obligations under the farm-in agreement, which
allows us to move forward with our partners in the development of the already
discovered gas in the Penészlek area, along with further assessment of the
exploration potential of the blocks."
The partners are planning a development centred on the PEN-104 gas
discovery (announced November 2006) and incorporating the PEN-9 and PEN-12
discovery wells. The re-development of the previously productive Penészlek
field will be considered as an addition to this development. PetroHungaria
(the operator) is proceeding with these various development initiatives at
Penészlek, which include pipeline integrity testing on the existing gathering
system; the necessary wellbore permitting and regulatory approvals for the
re-entry of PEN-9 and PEN-12; and the negotiation of natural gas processing
and transportation arrangements with the operator of the area infrastructure.
The Company's PEN-104 discovery, together with PEN-9 and PEN-12, cumulatively
tested over 7.5 MMcf/day of gas from both the basal Miocene volcaniclastic
section and the overlying Pannonian section. DualEx and its partners aim to
have natural gas production on stream at Penészlek this coming winter.
In Syria, good progress continues to be made in the field acquisition of
the 1138 km 2D seismic program on Block 17 in the Palmyra region (DualEx
31.67% working interest). Field recording commenced in mid-March 2007, and is
approximately 76% complete. In addition, DualEx and its partners have
undertaken the reprocessing and interpretation of a total of 2,338 line
kilometres of legacy 2D seismic data. The results of the new seismic
acquisition and the reprocessed legacy data, once integrated with the
geologic/petrophysical review and existing well data, will be used to rank
prospects for drilling in 2008. On Block 17, DualEx and its partners are
targeting hydrocarbons in the Triassic Kurrachine formation, in which
significant discoveries have been made by other operators on adjacent blocks.
DualEx Energy International Inc. is an oil and gas exploration company
with operations in the greater Mediterranean area. DualEx's common shares
trade on the TSX Venture Exchange under the symbol "DXE".
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: about DualEx Energy International Inc., please
visit our website at www.dualexen.com, or contact Garry Hides (President &
CEO) at (403) 265-8011 ext. 223