Also, by a curtesy of a friend.

US' Falcon to combine licenses with Exxon, MOL at Mako in Hungary

London (Platts)--8Dec2008

US-based Falcon Oil & Gas said Monday it has agreed to join forces with
ExxonMobil and Hungary's MOL to combine all the companies' exploration
licenses in the hugely gas-prospective Mako Trough in Hungary into one unit.

Falcon said the companies agreed to amend a deal reached in April this
year which saw ExxonMobil take over operatorship of licenses held by Falcon in
the Mako Trough.

Under the amended deal, ExxonMobil and MOL will also finance the
expansion of the exploration area, Falcon said in a statement.

"We are pleased to enter into the amended terms with ExxonMobil and
MOL--the Mako Trough is potentially an enormous resource, and Falcon regards
these modifications to the April agreement as a significant step forward in
optimizing the ultimate development of Falcon's assets," said company chairman
and CEO Marc Bruner.

"All parties have a single common goal, and will greatly benefit from a
combined work program," he said.

ExxonMobil and MOL have their own exploration licenses in the Mako Trough
area.

Recoverable gas resources at Mako have been estimated at over 21.8 Tcf,
although Falcon has not yet been able to convert resources to economically
recoverable reserves despite an active drilling program.

The gas is spread throughout a large, deep basin-centered gas
accumulation which poses major technical challenges to drilling such as high
pressure and extremely high temperatures.

Following the initial work program to evaluate commercial production of
unconventional gas and liquids, ExxonMobil has the option to proceed to an
appraisal phase.

"If ExxonMobil and MOL elect to proceed to the appraisal work program,
the parties agree to expand the area where wells may be located and apply a
portion of the $100 million program expenditures basin-wide in a combined work
program, based on the optimum locations from a technical basin-wide appraisal
standpoint," Falcon said, quoting the new amended terms of the agreement.

"If ExxonMobil and MOL elect to proceed to the development work program,
the parties agree to apply 50% of the $75 million payment due to Falcon to the
same expanded basin-wide area in a combined work program."

Gas from Mako would find a ready market in Hungary, which imports the
majority of its gas from Russia. Hungary's gas network is also linked to
Central Europe through pipelines to Austria.

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