Falcon Oil & Gas Ltd announce spudding of second well in Hungary
Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) (“Falcon” or the “Company”) is pleased to announce that the second of three exploration wells “Besa-D-1”, with our partner Naftna Industrija Srbije JSC (“NIS”) to evaluate the gas potential of the Algyo Formation at a depth of approximately 3,000 meters in the Mako Trough, Hungary has been spudded. The well testing operations on the first well, Kutvolgy-1 are now completed. The testing indicated that the well experienced improved recovery from certain intervals however well production did not meet commercial rates. Falcon, with our partner NIS, has discontinued testing Kutvolgy-1, the well is to be plugged and abandoned. Falcon and NIS are now focused on Besa-D-1.
In addition, to the spudding of Besa-D-1, our partner NIS continues to study the hydrocarbon potential of the entire Mako Trough including the Deep Mako play.
In accordance with the agreement with NIS, announced on 14 January 2013, Falcon is fully carried as all costs associated with this three well drilling program are funded by NIS. Any hydrocarbon sales revenue resulting from this program will be shared equally between Falcon and NIS.
Philip O’Quigley, CEO of Falcon commented:
“Following from our press release on 2 May 2014 of the Transformational Farm-out of our Beetaloo permits, I am pleased to announce we have spudded the second well of our three well programme with NIS in Hungary. I look forward to sharing the results of the second well and building on the knowledge of what we have learned from the testing of Kutvolgy-1 with the market in due course.”
Source: Falcon Oil & Gas Ltd.