Slightly dissapointed with the decision of Hess. To me it's a 50/50. On one hand hats off to the Falcon Management to show firmness but on the other hand if it was all that good Hess would have jumped on the wagon. Anyways, it still remains a long shot before we see anything that is economically viable from these projects. But as a newly reinstated investor I am prepared to wait and see.

Meanwhile in Hungary, I am keeping an eye on the developments with the subsidiary of GAZPROM.....

http://www.clickpress.com/releases/Detailed/682037005cp.shtml

Environment: Hungary Oil & Gas Report Q3 2013 - New Study Released

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Hungary Oil & Gas Report Q3 2013 - New Study Released

Fast Market Research recommends "Hungary Oil & Gas Report Q3 2013" from Business Monitor International, now available

[ClickPress, Fri Jun 28 2013] While national energy group MOL has great plans for the Central European region, maximising the impact of its downstream assets, it can do little to ease Hungary's growing dependence on imported oil and gas. Independent explorers have made some recent progress in locating untapped (largely gas) reserves, but the upstream picture remains relatively unattractive. Hungary's commitment to the new South Stream gas pipeline scheme should provide greater long-term supply security.

The main trends and developments for Hungary's oil and gas sector are:

* Falcon Oil & Gas has discovered a large Basin-Centred Gas Accumulation (BCGA) and a potential fractured oil and gas play in the Mako Trough area in south-central Hungary. RPS Energy in a report dated January 2013 estimates that eight prospects in the Algyo Play contain gross unrisked recoverable prospective gas resources of 568bn cubic feet, or 16.1bn cubic metres (bcm) (P50). Contingent resources for the Mako Production Licence, estimated for the Deep Mako Trough, include 35.3trn cubic feet (1,000bcm) of gas and 76.7mn bbl of oil (P50).

* In January 2013, Falcon agreed a three-well drilling exploration programme with Serbia's NIS (owned 56% by Gazprom), to target the Algyo Play. NIS has made a cash payment of US$1.5mn to Falcon and agreed to drill three exploration wells by July 2014. NIS will earn 50% of net production from the first three wells, and has the option to participate in any future drilling on terms to be negotiated, after paying Falcon US$2.75mn. Falcon is to be fully carried on the drilling and testing of the three exploration wells. Drilling preparations are already underway. NIS has informed the company that it expects the first well to spud by the end of Q2 2013.