Bloomberg reports that INA struck a gas a condensates reservoir three weeks ago in the East Yidma region, Western Egypt desert, where it shares exploring rights with RWE. The company is now assessing the find and will declare whether it is commercially viable in late 2007, INA African director Zdenko Dvorscak told the newswire yesterday. Mr. Dvorscak added that INA is actively seeking to search for petroleum in emerging oil nations like Mauritania and Zambia as competition for reserves in Africa's largest oil provinces gets hotter.
Our view:
It is well known that MOL's INA is very strong in oil&gas research due to their long experience in emerging countries. However, until INA does not announce the commercial size of a field, MOL share price should not react on the news. We maintain our Buy recommendation with a aprice target of HUF 27,233.