Falcon Oil&Gas said on Monday the extension granted to its partner, Novi
Sad-based oil and gas company NIS, regarding a three-well drilling
and testing programme in Hungary has expired with the Serbian firm failing to
fulfil its commitments.
In January 2013, Falcon agreed a three-well
drilling programme with NIS to target the Algyo play in Hungary with the Serbian
firm making a cash payment of $1.5 million (1.34 million euro) to Falcon in
February 2013, and agreed to drill three wells by July 2014.
In July,
Falcon Oil&Gas extended to December 31 the date for completion of the three
well programme with NIS so that the Serbian company can complete the testing of
the Besa-D-1 well, evaluate the hydrocarbon potential of the entire Mako Trough
including the Deep Mako play and fulfill the third well obligation of the
drilling programme.
As of December 31, NIS has only drilled and tested
two wells and Falcon is currently evaluating, and will pursue, all options
available to the company to derive shareholder value as NIS has not fulfilled
its commitments under the agreement, Falcon Oil&Gas said in a
statement.
NIS, majority-owned by Russia's Gazprom Neft, is one of the
largest vertically integrated oil and gas companies in Southeast Europe. Its
main activities include the exploration, production and processing of oil and
gas, as well as the production and retail of a wide range of petroleum
products.
Falcon is an oil and gas company engaged in the acquisition,
exploration and development of conventional and unconventional oil and gas
assets, with the current portfolio spread between Australia, South Africa and
Hungary. Falcon is incorporated in British Columbia, Canada and headquartered in
Dublin, Ireland with a technical team based in Budapest, Hungary.
BELGRADE (Serbia), January 26 (SeeNews) -
Falcon Oil&Gas said on Monday the extension granted to its partner, Novi
Sad-based oil and gas company NIS [BEL:NIIS], regarding a three-well drilling
and testing programme in Hungary has expired with the Serbian firm failing to
fulfil its commitments.
In January 2013, Falcon agreed a three-well
drilling programme with NIS to target the Algyo play in Hungary with the Serbian
firm making a cash payment of $1.5 million (1.34 million euro) to Falcon in
February 2013, and agreed to drill three wells by July 2014.
In July,
Falcon Oil&Gas extended to December 31 the date for completion of the three
well programme with NIS so that the Serbian company can complete the testing of
the Besa-D-1 well, evaluate the hydrocarbon potential of the entire Mako Trough
including the Deep Mako play and fulfill the third well obligation of the
drilling programme.
As of December 31, NIS has only drilled and tested
two wells and Falcon is currently evaluating, and will pursue, all options
available to the company to derive shareholder value as NIS has not fulfilled
its commitments under the agreement, Falcon Oil&Gas said in a
statement.
NIS, majority-owned by Russia's Gazprom Neft, is one of the
largest vertically integrated oil and gas companies in Southeast Europe. Its
main activities include the exploration, production and processing of oil and
gas, as well as the production and retail of a wide range of petroleum
products.
Falcon is an oil and gas company engaged in the acquisition,
exploration and development of conventional and unconventional oil and gas
assets, with the current portfolio spread between Australia, South Africa and
Hungary. Falcon is incorporated in British Columbia, Canada and headquartered in
Dublin, Ireland with a technical team based in Budapest, Hungary.