From the www.delmagyar.hu

http://www.delmagyar.hu/szeged_hirek/szerb_furasok_algyonel/2224389/

Serbian drilling at Algyő

From our reporter - Délmagyarország Daily

10/06/2011. 07:27

Szeged – a Letter of Intent was signed between TXM Oil and Gas Exploration Kft. 100 percent owned Hungarian subsidiary of Falcon Oil & Gas Ltd., and the Gazprom controlled Naftna Industrija Srbijével (NIS) on Thursday for the acquisition by NIS an interest in the exploitation of the Algyő formation within Falcon's Makó production license.

Under the terms of agreement, NIS at its sole expense drill, test and complete three wells in the agreement area. These wells, to be drilled and tested by December 31, 2012, shall be located so that each well tests an independent Algyő prospect. NIS will earn a 50 percent interest in production from each prospect if the discovery well is tied in and placed on production at the cost of NIS.

The exploitation of 600 billion cubic meters of gas resource that would be sufficient up to 40 years could start in the Makó region in a few months - were written in 2007. In April 2008 Falcon Oil & Gas Canada signed an agreement with the U.S. Exxon and Mol to exploit the Makó gas field. In November 2009 Falcon announced that temporarily cease operation at Földeák-1 well, but will continue to work at various points in the Makó trough. For example, the Magyarcsanád-1 well producing very high quality light oil from the depths of 4,200 meters and this product is sold to Mol’s Algyő processing plant. In addition to laboratory and stratigraphic studies Falcon is searching for new investors as well - we wrote last October.