Falcon Oil partner misses Mako drilling deadline

Falcon is a global energy company with projects in Hungary, Australia & South Africa

Developing large acreage positions of unconventional and conventional oil and gas resources

Dear Agoracom Family,

I want to thank all of you for your patience with us over the past 48 hours and apologize for what was admittedly a botched launch of our new site.

As you can see, we have reverted back to the previous version of the site while we address multiple forum functionality flaws that inexplicably made their way into the launch.

To this end:

1.We have identified 8 fundamental but easily fixable flaws that will be corrected in the coming week, so that you can continue to use the forums exactly as you've been accustomed to.

2.Additionally we will also be implementing a couple of design improvements to "tighten up" the look and feel of the forums.

Have a great Sunday, especially those of you like me that are celebrating Orthodox Easter ... As well as those of you who are also like me and mourning another Maple Leafs Game 7 exit ... Ugggh!

Sincerely,

George et al

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solyomtwo

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Falcon Oil partner misses Mako drilling deadline

posted on Jan 26, 2015 08:07AM

Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD.: NIS DRILLING PROGRAMME- EXPIRY OF EXTENSION

The extension granted to Falcon Oil & Gas Ltd.'s partner, Naftna Industrija Srbije JSC, regarding the obligatory three-well drilling program in Falcon's Mako trough licence in Hungary, has expired.

In January 2013, Falcon and NIS agreed to complete a three-well drilling programme (the "Agreement") targeting the relatively shallow Algyo Play, by July 2014. Under the terms of the Agreement, NIS made a cash payment of US$1.5 million and agreed to carry Falcon for 100% of all costs associated with the drilling and testing programme. The July 2014 deadline for completion of drilling and testing of the three-well programme was subsequently extended by Falcon to 31 December 2014 to enable NIS to fulfil its three well obligation. As of 31 December 2014, NIS has only drilled and tested two wells.

Falcon is currently evaluating, and will pursue, all options available to the Company to derive shareholder value as NIS has not fulfilled its commitments under the Agreement.

Falcon retains 100% interest in the Mako Trough Licence in Hungary including the deep play.

Philip O'Quigley, CEO of Falcon Oil & Gas commented:

"We would like to thank NIS for their partnership over the last two years. The first two wells in the three-well programme were drilled and tested professionally. However, we are very disappointed that NIS has not fulfilled its obligations in accordance with the terms of the Agreement and we will now pursue all options available to the Company."

"Falcon remains focused on the potential farm-out of the Mako deep play and is currently working with industry to evaluate potential options."