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Falcon Oil & Gas Begins Drilling In Hungary

Falcon Oil & Gas (LON:FOG) (CVE:FO) has revealed that the drilling campaign has begun in the Mako Trough in Hungary.

Its partner, Serbian oil and gas company Naftna Industrija Srbije (NIS), has contracted a German drilling company to carry out the multi-well program targeting the highly prospective Algyo play.

NIS will drill the first well (Kútvölgy-1) targeting gas prospects in the formation at a depth of around 3,000 metres. The rig is expected to be moved around the end of the month and spudding will begin in mid-June.

One or two wells will be drilled initially - they will then be logged and suspended for evaluation before appropriate testing. The first well will take around 40 days to drill.

Philip O'Quigley, Falcon's chief executive, said: "We are delighted to announce the commencement of drilling operations in Hungary.

"The partnership with NIS has been excellent over the last few months and we now are looking forward to exploring the further hydrocarbon potential of the Makó trough."

All costs are covered by NIS, with any revenue from the initial program shared 50/50 between Falcon and its Serbian ally.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.