NIS is a Serbian oil and gas company in which JSC Gazprom Neft holds a 56% stake.
Under the agreement, NIS will drill three wells in Falcon’s Mako Trough production licence in the Pannonian Basin, Hungary to target the Algyo Play. Post drilling NIS will earn 50% of the net production revenues from the three wells drilled.
Falcon Oil & Gas chief executive Philip O”Quigley said the company has partnered with NIS for the drilling program.
"Hopefully, this is part of a series of deals that will see multi-well carried drilling programs being carried out across our portfolio in the near future," O”Quigley added.
Drilling of the first well is scheduled to begin by the end of March 2013, while the second and third wells are likely to be completed by the third quarter of 2013.
