>alcons presentation states that Exxon as operator must drill and test 75million worth of exploration wells in the first phase no later than 12 months after the start of teh agreement. -- Does this mean that the 12 months is almost up? Will there be an extension granted or penalties to Exxon? I'm just really confused about the whole thing.

In phase 1, Falcon got $25 mm in cash, and Exxon has to do $50mm worth of work, not $75. Phase 1 is supposed to last approx 12 months, and then they have a few months to decide whether or not to go to phase 2. This is from the Macqaurie report

"The first stage was initiated on 10 April 2008. Stage 1 testing must be completed within 16 months of initiation."

>Why not just concentrate on the easiest and biggest target to produce?

That one is harder to answer than 'to be or not to be' :)

>Is there any other field in the world that you guys know of that has a similar temperature gradient and high pressue?

North Sea wells are about as close as you can get. The Mako Trough is hotter and higher pressured, with H2S to boot. It's one of the "worlds toughest energy challenges."

>It sounds like Exxon gave have of their 66% to MOL, but also signed another agreement with MOL that is split 50/50 that Falcon has no part in. Is this correct?

Yes

>Does anyone know what Exxon and MOL are up to right now? Are they drilling wells? Testing? Completing? How many wells has the Exxon/Mol partnership drilled?

On the Exxon/MOL side, 2 wells drilled (Mindszent-3 and HOD-1). A third one possibly on the go (unofficial). On the Falcon/Exxon/MOL side, they are still drilling the first well (excluding the 6 that Falcon drilled prior to the JV). This is the Foldeak-1.

>Right now TXM is drilling Foldeak with target in the szolnok. Do they have money to drill more wells after this?

Exxon is drilling the Foldeak. Exxon is the operator. I'm sure Exxon will have money left, but I don't think that's what you mean :)

Exxon has budgetted $25-$40 million for the first well of stage 2 (if they go to that stage). They said that this well will be similar to the Foldeak-1. Therefore, we can assume the Foldeak-1 is going to cost $25-40 million. Exxon also had to give falcon $5 million towards repairing the Mako-6 well....so it's highly unlikely they will have enough money left out of the $50 million to drill another well during phase 1. I'm sure there is a lot more work that has been done, or has yet to be done, that is not part of actual drilling, that would also eat up a lot of that money.