Catalysts

UBS believes there could be three significant catalysts, basically three key wells over the balance of the year:

• Shaikan-1 exploration well in Kurdistan;
• exploration drilling on Akri Bijeel in Kurdistan; and
• the test results on the Mako Basin in Hungary.

“If the tests on the Mako Trough prove promising, this could unlock gross resource estimates in excess of 2bn boe or c340bcm of gas. We believe that an update on the Shaikan-1 well is imminent. The operator Gulf Keystone recently made an announcement that states that there could be 1.5-3bn barrel of oil in place (MOL 20% interest). If successful, this has the potential to de-risk the neighbouring block Akri Bijeel, where MOL as the operator has an 80% interest. An exploration well will be drilled there soon."

ANALYST VIEW - UBS maintains 'Sell' rating on Hungary's MOL, ups TP
PORTFOLIO.hu

Monday, August 31, 2009 08:34:00 AM

UBS has on Monday raised its target price for Hungarian fuels group MOL to HUF 13,000 from HUF 12,000 and maintained its ‘Sell' rating on the stock.

UBS pointed out that MOL's second-quarter EBIT of HUF 78.8 billion (and adjusted for one-offs HUF 47.7 bn) was in line with consensus estimate, while its net profit of HUF 156 bn (ex one-offs) beat the market's call.

2009.08.28 08:59
Hungary MOL posts gigantic net profit in Q2, causes little surprise (2)

“Divisionally, MOL missed in Petchem, but that was offset by small beats in R&M and G&P. E&P earnings were in line with consensus, but down c50% y/y on weaker price realisations and production, which stood at c75kbd (down 10% q/q)," UBS noted.