ExxonMobil Corporation affiliate ExxonMobil Hungary (Mako) Limited ("ExxonMobil"), the Company's partner in the joint production and development project located in the Mako Trough in Hungary, has notified the Company of its recommendation to cease operations at the Foldeak-1 well site after testing a portion of the Szolnok Formation. ExxonMobil, MOL and Falcon are discussing next steps regarding such operations.

For sure this is as dissapointing as one can expect but there is no indication yet that XOM is ¨totally abandoning the project. The way I read this is that they are recommending to cease Foldeak 1 but not necessarily the whole project.

The NR also mentions the parties, n.b including MOL are discussing next steps. This means that the HUD 1 also did not go well for MOL and one should question why they are included in this part of the news release. We can therefore expect another NR after consultation of the partners.

Even with XOM, we all knew this was going to be a long road with lots of hurdles and we have just encountered one. I agree that no one except for the usual skeptics was anticipating this kind of dissapointing news. However XOM is yet to officially pronounce itself on its intent quite yet. The market is pricing in a move away from XOM but if this does not occur we are back to square 1, otherwise lets hope the Falcon boys do get a new partner for Hungary and Australia combined. Let's not forget that possibility.