US oil&gas exploration and production company Falcon Oil & Gas Ltd is considering the listing of its shares on Budapest Stock Exchange. The company reportedly invested USD 150 million into the Mako (SE Hungary) natural gas project in the past two years.
Our view: Falcon reported at the end of last year that it found 600bn cubic meters of natural gas in the ultra deep field absorbed by sandstone. The company claims that it already use the technology in the US what is needed for the production from such a difficult field (extreme pressure and more than 250 degrees of Celsius). Placing the residuum sludge is the major problem for Falcon as Hungary currently does not have the necessary storage facilities. Current market cap of Falcon is US$ 165m, which would place the company to the midcaps on BSE.