MOL has signed Production Sharing Contract with the Kurdistan Regional Government on Shaikan exploration block

MOL Hungarian Oil and Gas Plc announces that it has signed a Production Sharing Contract in partnership with Gulf Keystone Petroleum Ltd. and Texas Keystone Inc. with the Kurdistan Regional Government (KRG) on an exploration block in the Kurdistan Region of Iraq. Gulf Keystone is a UK (AIM) listed oil and gas exploration and production company, whose focus is in North Africa and the Middle East. Shaikan Block - with area extent of 283 sqkm - is situated about 60 km North-East from Erbil, the capital of the Kurdistan Region.

MOL will hold a 20% paying (16% participating) interest in the block. In return, Gulf Keystone has agreed to acquire a 20% share in the MOL-operated Akri-Bijeel Block in Kurdistan.

The planned work programme includes 100 km of high quality 2D seismic acquisition and the drilling of one exploration well. In case of successful exploration activity good quality oil production is expected.

Zoltán Áldott, Executive Vice-President of the Exploration and Production Division commented: "After signing the Akri-Bijeel Block PSC, MOL's intention was to participate in the Gulf Keystone operated Shaikan Block as well with 20% to continue to build a portfolio and share the exploration risk. To reduce our exposure we invited Gulf Keystone into Akri-Bijeel Block with the same percentage. The two blocks are in neighbouring position, which gives the opportunity for close cooperation in the operation."