Falcon Commences Drilling With Naftna Industrija Srbije JSC ("NIS") in the Mako
DUBLIN, IRELAND -- (Marketwired) -- 06/13/13 -- Falcon Oil & Gas Ltd.
(TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) ("Falcon" or the "Company"), is
pleased to announce that further to its announcement on 23 May 2013,
the first of three exploration wells "Kutvolgy-1", to evaluate the
gas potential of the Algyo Formation at a depth of approximately
3,000m in the Mako Trough, was spudded on the 11th June, 2013.
Drilling of this first well is expected to take approximately 40
days. It is planned to drill into the Algyo Formation, log and
suspend the well for further evaluation prior to carrying out an
appropriate testing program.
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:
"We are pleased to confirm that the drilling of the first of a three
well program with NIS in Hungary has commenced. We are fortunate to
have a strong partner in NIS funding this drilling campaign. I look
forward to sharing the result of the drilling campaign with the
market in due course."
About the Algyo
The Algyo is a relatively shallow play between 2,300m and 3,500m. A
number of Falcon wells have been drilled through the Algyo in recent
years, some of which encountered gas shows, but to date no well has
ever tested the play concept at an optimal location as previous wells
targeted deeper intervals of up to 6,000m.
Multiple Algyo prospects have subsequently been identified by Falcon
through extensive AVO analysis and the upcoming exploration drilling
program with NIS will be targeting three separate high-graded
A recent independent study by RPS Energy (January 2013) included for
the first time Prospective Resource recoverable volumes attributable
to the shallow "Algyo Play". According to the RPS CPR report, eight
of the ten prospects identified by Falcon contain 568 BCF of
prospective recoverable gas resources, each with a 10% Geological
Probability of Success ("GPoS").
About Falcon Oil & Gas Ltd.
Falcon is an international oil & gas company engaged in the
acquisition, exploration and development of conventional and
unconventional oil and gas assets, with the current portfolio spread
between Australia, South Africa and Hungary. Falcon is incorporated
in British Columbia, Canada and headquartered in Dublin, Ireland with
a technical team based in Budapest, Hungary.
For further information on Falcon Oil & Gas Ltd. please visit
About NAFTNA INDUSTRIJA SRBIJE JSC (NIS)
NIS is one of the largest, vertically integrated oil and gas
companies in Southeast Europe, focusing on exploration and production
of hydrocarbons, refining of crude oil and sales of a broad range of
For further information on NIS please visit www.nis.rs.
Certain information in this press release may constitute
forward-looking information. This information is based on current
expectations that are subject to significant risks and uncertainties
that are difficult to predict. Actual results might differ materially
from results suggested in any forward-looking statements. Falcon
assumes no obligation to update the forward-looking statements, or to
update the reasons why actual results could differ from those
reflected in the forward looking-statements unless and until required
by securities laws applicable to Falcon. Additional information
identifying risks and uncertainties is contained in Falcon's filings
with the Canadian securities regulators, which filings are available
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Falcon Oil and Gas Ltd.
+353 1 417 1900 or +353 87 814 7042
+44 207 269 7157
+44 207 269 7230
+44 207 269 9348
Davy (NOMAD & Joint Broker)
John Frain / Anthony Farrell
+353 1 679 6363
GMP Securities Europe LLP (Joint Broker)
James Pope / Alexandra Carse
+44 20 7647 2835
Cantor Fitzgerald Europe (Joint Broker)
Stewart Dickson / Richard Redmayne / Julian Erleigh
+44 207 894 7000
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