Falcon Oil and Gas said it would be pursuing “all options” after its partner in a three-well drilling programme failed to complete work on time.
Last year Falcon Oil and Gas extended an agreement with Nafta Industrija Srbije jsc (NIS) by five months.
The companies had agreed in 2013 to complete a three-well drilling programme targeting the Algyo Play in Hungary.
As part of the agreement, NIS made a cash payment of $1.5million and agreed to carry Falcon for 100% of all costs associated with the drilling and testing programme.
The deadline was extended from the July until the December to enable to company to fulfil its three well obligations.
Despite the contract extension, Falcon Oil and Gas said NIS had failed to completed the third well.
Philip O’Quigley, chief executive of Falcon Oil & Gas said: “We would like to thank NIS for their partnership over the last two years.
“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.
“Falcon remains focused on the potential farm-out of the Mako deep play and is currently working with industry to evaluate potential options.”
The company said it is now evaluating all options available to the company to derive shareholder value.
Falcon retains 100% interest in the Mako Trough Licence in Hungary including the deep play.
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