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MOL transfers treasury shares to Kurdistan program

Hungarian oil and gas company MOL on Monday said it transferred 25,545 treasury shares apiece to Dana Gas and Crescent Petroleum to finance part of the 2009 work program at a gas field in the Kurdistan region of Iraq.

MOL had 7,434,737 “A” series shares and 578 “C” series shares after the transaction, or about 7.1% of registered capital.

MOL acquired a 10% stake in the Pearl Petroleum Company from Dana Gas and Crescent Petroleum, which holds the rights to the field, in May. MOL paid for the stake with shares, giving the owners each a 3% stake in MOL.

MOL said on Thursday it would finance its share of the 2009 work program at the gas field either fully with treasury shares or with treasury shares and cash.

“Depending on the share price developments on the stock market MOL will choose between share and cash financing,” MOL said.

MOL said it would transfer the 51,090 MOL shares in equal part to Dana Gas and Crescent Petroleum by September 15, 2009, and it could sell up to 80,000 MOL shares by October 15, 2009.

MOL said earlier it sold a combined 67,047 treasury shares on the Budapest Stock Exchange on Thursday and Friday. The transactions together were worth about HUF 959 million, Econews calculated based on the average sale prices announced by MOL.

MOL's Austrian peer OMV also purchased a 10% stake in Pearl Petroleum from Crescent Petroleum and Dana Gas in a separate transaction in May. Both companies are members of the Nabucco consortium which aims to build a pipeline to deliver gas from central Asia to Europe, reducing the region's energy dependence on Russia. (MTI-ECONEWS)