Falcon 'Disappointed' with NIS over Mako Trough License

Falcon Oil & Gas CEO Philip O'Quigley said Monday that the company is "very disappointed" with its partner, Naftna Industrija Srbije, after its failure to drill a third well on Falcon's Mako Trough license, onshore Hungary, within the timeframe agreed between the two companies.

In January 2013, Falcon and NIS agreed to complete a three-well drilling program targeting the Algyo play by July 2014. Under the terms of the agreement NIS made a cash payment of $1.5 million and agreed to carry Falcon for 100 percent of all costs associated with the drilling and testing program.

The deadline was extended in July 2014 until December 31 2014 to enable NIS to fulfil the program, but NIS had only drilled and tested two wells by the new deadline.

Falcon said that it is currently evaluation the options available to it.

O'Quigley said in a company statement:

"We would like to thank NIS for their partnership over the last two years. The first two wells in the three-well program were drilled and tested professionally. However, we are very disappointed that NIS has not fulfilled its obligations in accordance with the terms of the agreement and we will now pursue all options available to the company."

"Falcon remains focused on the potential farm-out of the Mako deep play and is currently working with industry to evaluate potential options."

 



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  ExxonMobil Starts Fuels Production at ... (Sep 21)
 -  How to Become a Safety Engineer (Sep 18)
 -  How to Become a Geologist (Sep 15)
 -  Oil, Gas Industry Leadership Group to ... (Sep 14)
 -  CB&I Wins China PDH Unit Contract (Sep 11)


Most Popular Articles

From the Career Center
Jobs that may interest you
Drilling Manager
Expertise: Drilling Manager|Drilling Superintendent
Location: Dallas, TX
 
Drill Rig Operator
Expertise: Driller|Drilling Foreman / Drilling Supervisor|Production Operator
Location: Hayward, CA
 
Tool Pusher
Expertise: Field Service Tech|Toolpusher
Location: Odessa, TX
 
search for more jobs

Brent Crude Oil : $56.86/BBL 0.76%
Light Crude Oil : $50.66/BBL 0.21%
Natural Gas : $2.959/MMBtu 0.30%
Updated in last 24 hours