Falcon Oil & Gas Ltd. reports that its Hungarian subsidiary, TXM Oil and Gas Exploration LLC has concluded negotiations on a significant exploration program with NIS, the Serbian oil and gas company which is owned 56% by JSC Gazprom Neft.

Under the terms of the Transaction, the tax and accounting consequences of which are still subject to favourable ruling to be requested from the Hungarian Ministry of Finance, NIS shall drill three exploration wells targeting the "Algyo Play" within the company's Mako Trough production licence in the Pannonian Basin, Hungary.

NIS would earn, by conclusion of the drilling obligation, 50% of the production revenues from the wells drilled and an option to acquire a right of first negotiation for future drilling operations in the "Algyo Play".

Tags: Falcon Oil & Gas