>if anyone can update us on the potential resource on that donut and anything that could be split.

Pipe, Exxon nor MOL have put out a report specifying the estimate of gas in Areas 89, 106, and 107. In fact, in the material document recently posted on Sedar, it said that their estimates of the gas in place are confidential, and will not even be available to Falcon. From my understanding of the unitization process, that is totally normal, as I mentioned the other day, the unitization process is more of a competition than a negotiation. Each party will try and show that they have more resources on their land than the other parties, which in turn will result in a larger percentage holding of the unit. I imagine they don't want to show their cards just yet.

>if the three amigos due end up going 1/3,1/3,1/3 with the entire trough

There are actually 5 amigos. The operating agreement states that a new Hungarian Limited Liability Company will be created to own the assets of the JV area. I don't know if they have done this yet or not, but they will. I would imagine the same will be done for the Exxon / MOL JV.

This means there are 5 companies involved.

Company A: TXM (Falcon)

Company B: MOL

Company C: ExxonMobil

Company D: TXM/MOL/XOM (new company to be created)

Company E: MOL/XOM (new company to be created)

Company D is owned by all 3 parent companies. 33% TXM, 33% MOL, and 33% Exxon

Company E is owned 50/50 by MOL and Exxon

If the lands are unitized, which I think will happen, the owners of the 'tracts' will be given an interest in the unit. The owners of the tracts are companies A, D, and E.

Assuming the tract interests are 33/33/33 for simplicity, Falcon will in turn have 100% ownership of 1 tract, and 33% of another, for a total of 44% of the unit

(33% + (33%x33%))

Before the JV's, Falcon had 100% ownership of approx 1/2 of the Mako Trough.

After unitization using 33/33/33, Falcon has 44% of 100% of the trough, in addition to all the cash and Exxon as the operator picking up a large portion of the tab for the appraisal stage.

33/33/33 is a rather optimistic number, and at the moment the Falcon lands aren't included in the unitization discussions, but hopefully this gives you an idea of how it all works, from my understanding.