Mol Nyrt., Hungary’s largest refiner, rose a third day, heading for the highest close in more than a week, after it reported an oil discovery in the Kurdistan region of Iraq.
The shares advanced 0.7 percent to 17,895 forint by 9:23 a.m. in Budapest, heading for the highest close since Feb. 7. The benchmark BUX stock index, in which Mol has the second-highest weighting at 31 percent, gained 0.1 percent.
The company discovered new, medium density oil in the Bakram exploration well, in Kurdistan, Iraq, Mol said in a statement on the Budapest bourse website today. The test resulted in 2,616 barrels of oil per day, according to the statement.
The discovery shows “strong numbers and may suggest a sizable upgrade of recoverable resource potential soon,” Peter Csaszar, a Warsaw-based analyst at KBC Grope NV, said in an e-mailed report today. “We continue to see Mol’s activities in Kurdistan as the most interesting project amongst that central and eastern European oil companies.”
The Kurdistan project will be Mol’s most important source of increasing output, with commercial production scheduled to start by 2015 at the latest, Chief Executive Officer Jozsef Molnar said last year.