NIS and Canada's Falcon to commence joint exploration in Hungary

NIS and Canadian oil company Falcon have begun preparations for drilling the first exploration well to a depth of approximately 3,300 meters in the Mako Depresija concession block in southeast Hungary.

Drilling will be done by Germany's DrillTec, with which the Petroleum Industry of Serbia (NIS) has recently signed an agreement. These works are in line with a gas exploration agreement signed between NIS and Canada's Falcon on January 14th, 2013. It should take up to 40 days to complete the drilling of the first exploration well.

All drilling expenses will be borne by NIS, whereas all possible profit from production from new wells will be equally distributed among NIS and Falcon. NIS is bound by the agreement to drill, explore and test three exploration wells in aforementioned concession block. This company has also set up a subsidiary in Hungary called Pannon Naftagas Kft.

NIS' partners in Hungary are Falcon Oil and Gas from Canada and RAG from Austria.