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TXM Olaj- és Gázkutató, which is the Hungarian unit of Falcon Oil and Gas, and Naftna Industrija Srbije (NIS) of Serbia on Thursday signed a declaration of intent on gas production in the Makó license area.
Under the agreement, NIS will drill three wells and test them at its own expense by the end of 2012. If the wells are successful, NIS will be entitled to 50% of their output.