NIS and Falcon commence multi well drilling operation in Hungary

May 23, 2013

NIS and Canada-based oil company Falcon will drill the first exploration well at a depth of approximately 3,300m in the Mako Trough in South-East Hungary. NIS has executed a drilling contract with Germany-based drilling company DrillTec. The works concerned are in accordance with the agreement on gas exploration entered into between NIS and Falcon, announced on 14 January 2013. Drilling of the initial well is expected to take approx. 40 days. All costs associated with the drilling program will be paid for by NIS. Any revenue from the initial three well programmes will be shared 50:50 between Falcon and NIS. NIS will be targeting three separate high-graded prospects for drilling, exploration and testing. NIS has established Pannon Naftagas Kft. subsidiary in Hungary. Falcon Oil and Gas from Canada and RAG from Austria are NIS partners in this country.