hungary oil and gas

Hungary Ranks in the Top 10 Oil and Gas Opportunities for 2011

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Since 2007 there has been a renewed interest in European countries to find and tap their hydrocarbon potential. It is what might be considered good timing for Hungary, that exploration over the last 5 years is now paying off, at a time of economic recovery, perhaps the re-nationalization of MOL really is a good long term strategy?

So What exactly has lead Hungary to be ranked at number 9 in the survey?

The recent confirmation and sigПing of the South Stream project agreement by Hungary and its neighbours springs to mind, however there has been interest in Hungary’s untapped resources for some time.

Exxon Mobil signed a deal with Falcon Oil and Gas Ltd in April 2008 and together with the MOL Group they have been exploring and developing 184,000 acres of the Mak Trough. So far the results have been described as disappointing.

Across Hungary vigorous Oil and Gas exploration is underway and although ExxonMobil results have not met expectations, other companies have had more luck.

Anther company JKX Oil and Gas has had success, the company holds a 50% equity in the northern Pannonian Basin Hernad licences in a joint venture with the operator Hungarian Horizon Energy (HHE). The deposit was discovered in 2008 and production started in August 2009.

More recently, the same two companies are also developing at Nyirseg on the same basis as the Hernad licence and two other sites one of which has shown good potential. JKX Oil and Gas agreed to drill seven more wells in the North East of Hungary, and the company reports good results thus far.

June 2011, Falcon Oil and Gas Ltd. Announces Letter of Intent with Naftna Industrija Srbije for Mako Trough Project through TXM Oil and Gas Exploration, Falcon’s 100 percent owned Hungarian subsidiary. This exploration site is to the south of Hungary, extending close to the Romanian border.

Promote CEE will keep you up to date on developments in Oil and Gas sector in Hungary and the wider CEE region as the sector becomes increasingly active throughout 2011 and onward. Watch this space.

Posted by Promote CEE Posted in News Jul, 15, 2011 Comments Off on Hungary Ranks in the Top 10 Oil and Gas Opportunities for 2011