MOL Shares Up Following Iraqi Kurdistan Report

MOL Hungarian Oil and Gas has informed the markets that, further to its recent notification on 8 November 2010 on the test results, it has submitted the Discovery Report on the Bijell-1 exploration well to the Ministry of Natural Resources of the Kurdistan Region of Iraq.

As previously announced, 3,743 bbl/d 13° API oil and 618,826 scf/d (99 boe/d) gas was produced through 48/64” choke from the Bijell-1 well in an interval of 3,729 – 3,967 m during the joint cased hole test. This level might be significantly increased by application of artificial lifting systems. Based on the updated geological model of the accumulation, the calculated petroleum initially in place (PIIP) at P50 is 2,419 MMBOE in the Jurassic formations of the Bijell structure.

This Discovery Report will serve as a basis for the planning of the appraisal program of the Bijell structure.

Background:

On 8 November 2010, MOL announced the successful closing of the testing of the Bijell-1 well in the Akri-Bijeel Block.

MOL, via its 100% subsidiary, Kalegran Ltd., signed a Production Sharing Contract with the Kurdistan Regional Government for Akri-Bijeel exploration block in 2007. Kalegran is the operator of the block with 80% participating interest and Gulf Keystone Petroleum International Ltd. is its partner with 20%. share, both are subject to dilution by a Government held Third Party Participation of 20% and a Government Interest of 20%.

Shares in MOL gained 6.8% on Friday.

(Source: MOL, Reuters)

MOL Hungarian Oil and Gas Plc. hereby informs the capital market participants that, further to its recent notification on 8 November 2010 on the test results, it has submitted the Discovery Report on the Bijell-1 exploration well to the Ministry of Natural Resources of the Kurdistan Region of Iraq.

As previously announced, 3,743 bbl/d 13° API oil and 618,826 scf/d (99 boe/d) gas was produced through 48/64” choke from the Bijell-1 well in an interval of 3,729 – 3,967 m during the joint cased hole test. This level might be significantly increased by application of artificial lifting systems. Based on the updated geological model of the accumulation, the calculated petroleum initially in place (PIIP) at P50 is 2,419 MMBOE in the Jurassic formations of the Bijell structure.

This Discovery Report will serve as a basis for the planning of the appraisal program of the Bijell structure.

Background:
On 8 November 2010, MOL announced the successful closing of the testing of the Bijell-1 well in the Akri-Bijeel Block.
MOL, via its 100% subsidiary, Kalegran Ltd., signed a Production Sharing Contract with the Kurdistan Regional Government for Akri-Bijeel exploration block in 2007. Kalegran is the operator of the block with 80% participating interest and Gulf Keystone Petroleum International Ltd. is its partner with 20%. share, both are subject to dilution by a Government held Third Party Participation of 20% and a Government Interest of 20%.

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