NIS and Falcon Oil & Gas spud exploration well in Hungary

The drilling of exploration well Kútvölgy-1 at Algyo field (the Mako concession block) in southeastern Hungary began in June. The operations fall under the agreement signed between NIS Link will open in a new window and Falcon Oil & Gas Link will open in a new window on January 14, 2013 for the joint exploration of gas fields.

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As planned, the drilling will last forty days, and the well depth will reach 3300 meters. The German company DrillTec Link will open in a new window is the drilling contractor. Upon completion of the drilling, the well will be tested to determine the field’s gas potential.

The Kútvölgy-1 well is the first of three exploration wells scheduled to be drilled under the NIS-Falcon Oil & Gas agreement. According to the agreement, NIS will be paying for the exploration work. If commercial hydrocarbon reserves are discovered, the profit from the sale of those reserves will be shared equally between NIS and Falcon Oil & Gas.

The subsidiary Pannon Naftagas Kft represents NIS’s interest in Hungary. Pannon Naftagas Kft is a partner of both Falcon Oil & Gas and the Austrian company RAG. NIS and RAG are jointly running exploration prohects in the Kelebija and Kiskunhalas blocks.

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NIS Link will open in a new window is one of the largest vertically integrated energy companies in Southeastern Europe. Its main business is the exploration, production, and refining of oil and gas, as well as the sale of petroleum products. Gazprom Neft owns 56.15 percent of the shares of NIS. The Republic of Serbia has a 29.88 percent ownership stake in NIS. An oil refinery in Serbia with two production sites, one in the city of Pančevo and one in Novi Sad, which have a combined capacity of 7 million tons of oil per year, belong to NIS, as does an auto gas production shop in Elemir. The company’s total production reaches approximately 1.7 million tons of oil equivalent per year. The company’s retail network includes over 500 gas stations, loading stations, and oil depots in the countries of the Balkan region. Besides Serbia, NIS’s geographical scope of operations includes Bosnia and Herzegovina, Hungary, Bulgaria, Romania, Turkmenistan, Angola, Belgium, and Russia.

Falcon Link will open in a new window is an international oil and gas company that implements projects involving the acquisition, exploration, and operation of hydrocarbon fields. At present, the company is carrying out projects in Australia, South Africa, and Hungary. Falcon is registered in the province of British Columbia, Canada, and its corporate headquarters are in Dublin, Ireland.

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