Whilst many Western European nations have either banned or disincentivized hydrocarbon exploration in their own jurisdictions, some have continued to open their doors. Hungary is an example of a country that still welcomes explorers, maybe also because the country is landlocked and, therefore, would lack the option to build LNG terminals.
Hungary is not new to domestic oil and gas production. However, until recent years, production – mainly taking place in the Pannonian Basin – has focused on relatively shallow plays. Deeper and more challenging HTHP plays at depths of around 3,000 m have hardly been tested, even though the signs are there that significant gas resources exist.
To further test the potential of this deeper play in Hungary, CanCambria Energy (TSXV: CCEC), an independent explorer from Canada and seasoned in onshore unconventional exploration and development, now has plans to drill their first well in the Pannonian Basin around the town of Kiskunhalas.
Led by CEO Chris Cornelius, an industry veteran who has spent the past 35 years directly involved in many of the world’s largest resource plays, his exploration team is headed by Paul Clarke, who has worked across all major North American Resource Basins where he learned the ropes developing large scale unconventional plays. The pair has successfully drilled and completed hundreds of horizontal and vertical wells over the years and now turn their experience to Hungary.
“We recognize that modern seismic data is key in identifying the sands we are after in the Pannonian Basin”, said Chris during a conversation we had. “For that reason, we acquired a new 3D survey in late 2023 that has already demonstrated its value in de-risking several potential drilling targets.”
“A fundamental knowledge of the subsurface is essential for characterizing the play, allowing us to predict reservoir quality and distribution,” says Paul. “Identifying sweet-spots in these deep over-pressured tight-gas systems is key to delivering highly productive wells that are beyond the legacy drilling results.”
Poorer commodity prices were also part of the reason why this play was never commercialized, as companies at the time did not see the value in what was considered a marginal reservoir in a low-price environment. “If we can tap into these reservoirs using modern stimulation technologies, we think that we can make this work,” Chris concludes. “With infrastructure being so close by, it would really be a big win for everyone.”
