Falcon Mulls Alternative for Hungary Makó Licence After Partial Failure

Falcon said its partner in Makó Trough Licence in Hungary did not respect the agreement signed in January 2013 for a three-well drilling programme, adding it is looking for other options to farm out the licence. 

Naftna Industrija Srbije (NIS) made a cash payment of of US$ 1.5 million, and agreed to bear the costs of the drilling and testing programme. Falcon announced on Monday the expiry of the extension. 

“The first two wells in the three-well programme 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” Philip O’Quigley, CEO of Falcon Oil & Gas commented in a note released on Monday.

Over the years, Falcon committed to several hundred million dollar investment in the exploration of unconventional gas in the Makó basin. On Monday, the company was traded at 5.50 pounds, down 0.62%.