Akri Bijeel Oil Block Declared 'Commercial'

Alexander Dodds, Executive Vice President for Upstream commented:

"MOL is pleased to announce commerciality on the Akri-Bijeel block after recent successful long term tests in our Bakrman discovery. Meanwhile, in the Bijell area we identified the potential to accelerate the work program and increase the number of rigs in order to finalize the appraisal activity as soon as possible and maximize EWT production during 2014.

"This declaration is another milestone in the fruitful relationship with KRG which covers not only the lucrative cooperation in the oil and gas industry, but also a wider area in supporting the development of local communities."

Operational details:

Bakrman field:

• Following our announced discovery in the Triassic Kurra Chine B formation in the Bakrman-1 exploration well in February, a longer term, 24 days production test (MD 3,930- 4,100 m) was concluded from 25 July until 26 of August 2013. Test results confirmed light oil and sour gas saturation with maximal oil production level around 3,192 bbl/d and 10,19 MMscf/d of gas on 64/64" choke size.
• After completing Triassic EWT, Bakrman-1 sidetrack was drilled targeting Jurassic reservoir in updip position. Jurassic target was drilled 236m higher compared to vertical well. Reservoir was tested in interval 1936 - 2000 mMD, no inflow was obtained and only traces of bitumen and heavy oil were recovered. The well is temporary suspended as future Triassic producer.
• Kurra Chine B formation Discovery is subject to Appraisal Work Program which has been started with a 3D seismic acquisition fully folding the Bakrman structure.
• At current stage we plan to drill 2 appraisal wells and deploy an Early Production Facility already in 2015 in order to commence early oil production.
• Further wells in the Work Program target Jurassic reservoirs as well, currently as an upside potential.