MOL signed an exploration and production sharing agreement for the Block 43 located in North-Eastern Oman.

MOL Hungarian Oil and Gas Public Limited Company hereby announces that on 28 June 2006 it signed an exploration and production sharing agreement (EPSA) for an onshore block located in North-Eastern Oman.

The 15,232 square kilometre block has possible depths of gas and condensate prone target reservoirs at depths between 2000 and 4000 metres. The infrastructure is well developed, Block 43 is in the proximity of the main pipeline and two refineries are located in the neighbourhood. A pipeline crossing over the Block enables gas transfer to the close gas processing plant and condensate export facilities. The block's geological structure is in many respects similar to the Tal Block in Pakistan where MOL performs successful operation.

The planned work program is flexible; it includes 300 km 2D seismic acquisition, after which drilling is optional based on the information gained from the seismic programme. The planned exploration budget for the two years programme is USD 8-10 million with an additional USD 14-16 million if the optional exploratory well is drilled.

Zoltan Aldott, Executive Vice President responsible for Exploration and Production commented "In various geographies including Hungary and Pakistan we have already proved that we are capable to successfully explore in complex geological structures. This new concession underlines our commitment to the Middle East, which is one of our core strategic growth regions. In this context, we regard Oman as a bridge-head for further expansion in this region."