BUDAPEST, Hungary, June 24 (UPI) -- Hungarian energy company MOL announced it secured an agreement with the government in Budapest to start exploring for oil in the country.
The company said it secured the rights to explore, appraise and develop a 134-square-mile area in the western section of the Szegedi Basin in Hungary.
MOL said it would spend at least four years on its work program for the Szegedi basin. Exploration targets eventual crude oil production and the company said it expects to start activity at the first wells during the second half of 2015.
The company said it estimated the recoverable resource potential at 25 million barrels of oil equivalent.
"We have a very good chance of carrying out a successful exploration program which can contribute to our mid-term strategic goal of mitigating the production decline in Hungary below 5 percent," Tamas Szakal, vice president of exploration and production for MOL, said in a statement.