Falcon Oil & Gas will receive $3.7million from Serbian oil company NIS following the termination of the oilfield services contract signed between the two companies in 2013.
In January 2013, Falcon and NIS agreed to complete a three-well drilling programme targeting the relatively shallow Algyő Play.
Under the terms of the agreement, NIS – part owned by Gazprom – made a cash payment of US$1.5 million and agreed to carry Falcon for 100% of all costs associated with the drilling and testing programme.
The July 2014 deadline for completion of drilling and testing of the three-well programme was extended by Falcon to 31 December 2014 to enable NIS to fulfil its three well obligation. As of 31 December 2014, NIS had only drilled and tested two wells.
Falcon retains a 100% interest in the Makó Trough licence in Hungary including the deep play.
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