issued a statement this morning that it has agreed with Exxon
Mobil subsidiary Esso Exploration International Limited to jointly examine unconventional gas resources in certain basins in Hungary. The company warns that unconventional exploration projects usually require substantial financial commitment and often entail significant production risk.
Our view: Success of Falcon’s in gas exploration in SE Hungary made MOL
to investigate the investment potential in this business. The company hopes that its geological knowledge and industry operations in Hungary combined with Exxon
Mobil’s technology and know-how can create value of both parties. Although we think the agreement can be a start of a new investment story for the future, we do not foresee a market reaction today, given the early stage of the cooperation and the high uncertainty related to exploration and production on unconventional fields.