TIDMFOG 
 
 
 
   Falcon Oil & Gas Ltd. 
 
   ("Falcon") 
 
   Beetaloo Farm-Out 
 
   7 April 2020  - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) ("Falcon") is 
pleased to announce that its c. 98% subsidiary, Falcon Oil & Gas 
Australia Limited ("Falcon Australia"), has executed an agreement which 
includes a restated Farm-Out Agreement and Joint Operating Agreement 
(collectively "the Agreements") with Origin Energy B2 Pty Ltd., a 
subsidiary of Origin Energy Limited ("Origin") to farm down 7.5% of 
Falcon Australia's 30% participating interest ("PI") in the Exploration 
Permits in the Beetaloo Sub-basin, Northern Territory, Australia ("the 
Permits"). Falcon and Origin are obligated to seek the Northern 
Territory government and TSXV stock exchange approvals, in respect of 
the Agreements. 
 
   Transaction details 
 
 
   -- With the necessary approvals, the PI of the respective JV partners will 
      be: 
 
          -- Falcon Australia 22.5% 
 
          -- Origin 77.5% 
 
   -- In consideration of Falcon Australia transferring 7.5% of its PI, Origin 
      will increase the gross cost cap of the work program by A$150.5 million. 
 
   -- The previous farm-in arrangement included a Stage 2 gross cost cap of 
      A$65.3 million and a Stage 3 gross cost cap of A$48 million, or A$113.3 
      million in total. Under the Agreements, the Stage 2 and Stage 3 gross 
      cost caps will be combined and increased by A$150.5 million to A$263.8 
      million (the "Overall Cost Cap"), 
 
   -- This Overall Cost Cap will be applied to the completion of the Stage 2 
      and Stage 3 work programmes. 
 
   -- Amounts of the Overall Cost Cap not utilised during Stage 2 and Stage 3 
      will be applied to future work programmes. 
 
   -- Expenditure above the Overall Cost Cap will be borne by the JV partners 
      in proportion to their PI. 
 
   -- Origin will assume 25% of the cost of Falcon Australia's remaining call 
      option to reduce the overriding royalties with the TOG Group. The cost to 
      Falcon Australia, should it wish to exercise the call option, will reduce 
      from US$7.5 million to US$5.625 million, in line with its reduced PI. 
 
 
   Operational Update 
 
   Drilling operations on the Kyalla 117 N2-1H ST2 well ("Kyalla Well") 
were successfully completed in February 2020, reaching a total measured 
depth of 3,809 metres, including a 1,579-metre lateral section (from 90 
degrees) in the Lower Kyalla Formation. Water impact monitoring bore 
drilling was completed in March and final preparatory work continues 
ahead of the next stage of operations. On 26 March, in response to the 
COVID-19 pandemic, Origin confirmed forward operations in the Beetaloo 
had been temporarily paused. As a result, Origin expects a delay to the 
Kyalla Well stimulation and extended production test of at least 3 
months to now occur in H2 2020, and the drilling of the Velkerri Flank 
well in H1 2021. 
 
   Philip O'Quigley, CEO of Falcon commented: 
 
   "Falcon Australia's farm down of 7.5% of its PI in the Permits for a 
further gross cost cap of A$150.5 million, provides Falcon with 
additional funding that can be applied to the completion of the Stage 2 
and Stage 3 work programmes. It also demonstrates Origin's continued 
commitment to the Beetaloo Sub-basin. This farm down together with 
Falcon's unaudited cash reserves of US$11.5 million at 31 March 2020 
leaves us well positioned to participate in the future upside potential 
of the Beetaloo. We look forward to updating the market as soon as 
operations recommence in the Beetaloo." 
 
   Ends. 
 
   CONTACT DETAILS: 
 
 
 
 
Falcon Oil & Gas Ltd.             +353 1 676 8702 
Philip O'Quigley, CEO            +353 87 814 7042 
Anne Flynn, CFO                   +353 1 676 9162 
 
Cenkos Securities plc (NOMAD & 
 Broker) 
Neil McDonald / Derrick Lee      +44 131 220 9771 
 
 
   This announcement has been reviewed by Dr. Gábor Bada, Falcon Oil & 
Gas Ltd's Head of Technical Operations. Dr. Bada obtained his geology 
degree at the Eötvös L. University in Budapest, Hungary and 
his PhD at the Vrije Universiteit Amsterdam, the Netherlands. He is a 
member of AAPG. 
 
   About Falcon Oil & Gas Ltd. 
 
   Falcon Oil & Gas Ltd is an international oil & gas company engaged in 
the exploration and development of unconventional oil and gas assets, 
with the current portfolio focused in Australia, South Africa and 
Hungary. Falcon Oil & Gas Ltd is incorporated in British Columbia, 
Canada and headquartered in Dublin, Ireland with a technical team based 
in Budapest, Hungary. 
 
   Falcon Oil & Gas Australia Limited is a c. 98% subsidiary of Falcon Oil 
& Gas Ltd. 
 
   For further information on Falcon Oil & Gas Ltd. please visit 
https://www.globenewswire.com/Tracker?data=8c0Yog3k0tBp96dvcYu6NV_20iMkuIJYOLmcU7F8gNRO2wWSJS7lQ_81m1VIMffctDlboO4o8x5-ZmpSksOfrsNJgzBbt_pqTgEuTuwGAD4= 
www.falconoilandgas.com 
 
   This announcement contains inside information. 
 
   About Origin Energy 
 
   Origin Energy (ASX: ORG) is a leading Australian integrated energy 
company. Origin is a leading energy retailer with approximately 4.1 
million customer accounts, has approximately 6,000 MW of power 
generation capacity and is also a large natural gas supplier. Origin is 
the upstream operator of Australia Pacific LNG, which supplies natural 
gas to domestic markets and exports LNG under long term contracts. 
 
   www.originenergy.com.au 
 
   Glossary of terms 
 
 
 
 
A$           Australian dollar 
Cost Cap     The costs up to which Origin has agreed to fund 
              100%. Any costs incurred above the Cost Cap will 
              be paid 77.5% by Origin and 22.5% by Falcon Australia 
H1           First six months of the calendar year 
H2           Second six months of the calendar year 
JV Partners  Joint venture between Origin Energy and Falcon 
              Oil & Gas Australia Ltd. 
LNG          Liquefied natural gas 
MW           Megawatt 
TOG Group    Malcolm John Gerrard, Territory Oil & Gas LLC 
              & Tom Dugan Family Partnership LLC 
Stage 2      Drilling operations include the drilling and hydraulic 
              fracture stimulation of two horizontal wells to 
              evaluate the potential of liquids rich gas fairways 
              in the Kyalla and Velkerri shale plays 
Stage 3      Drilling operations include the drilling and hydraulic 
              fracture stimulation of two horizontal wells to 
              prove flow rates of gas/liquids that provide a 
              range of commercialisation options 
TSXV         The TSX Venture Exchange is a stock exchange in 
              Canada 
 
   Advisory regarding forward looking statements 
 
   Certain information in this press release may constitute forward-looking 
information. Any statements that are contained in this news release that 
are not statements of historical fact may be deemed to be 
forward-looking information. Forward-looking information typically 
contains statements with words such as "may", "will", "should", "expect", 
"intend", "plan", "anticipate", "believe", "estimate", "projects", 
"dependent", "potential", "scheduled", "forecast", "outlook", "budget", 
"hope", "support" or the negative of those terms or similar words 
suggesting future outcomes.  This information is based on current 
expectations that are subject to significant risks and uncertainties 
that are difficult to predict.  Such information may include, but is not 
limited to, comments made with respect to the type, number, schedule, 
stimulating, testing and objectives of the wells to be drilled in the 
Beetaloo Sub-basin Australia, the prospectivity of the Middle Velkerri 
and Kyalla plays and the prospect of the exploration programme being 
brought to commerciality,  risks associated with fluctuations in market 
prices for shale gas; risks related to the exploration, development and 
production of shale gas reserves; general economic, market and business 
conditions; substantial capital requirements; uncertainties inherent in 
estimating quantities of reserves and resources; extent of, and cost of 
compliance with, government laws and regulations and the effect of 
changes in such laws and regulations; the need to obtain regulatory 
approvals before development commences; environmental risks and hazards 
and the cost of compliance with environmental regulations; aboriginal 
claims; inherent risks and hazards with operations such as mechanical or 
pipe failure, cratering and other dangerous conditions; potential cost 
overruns, drilling wells is speculative, often involving significant 
costs that may be more than estimated and may not result in any 
discoveries; variations in foreign exchange rates; competition for 
capital, equipment, new leases, pipeline capacity and skilled personnel; 
the failure of the holder of licenses, leases and permits to meet 
requirements of such; changes in royalty regimes; failure to accurately 
estimate abandonment and reclamation costs; inaccurate estimates and 
assumptions by management and their joint venture partners; 
effectiveness of internal controls; the potential lack of available 
drilling equipment; failure to obtain or keep key personnel; title 
deficiencies; geo-political risks; and risk of litigation. 
 
   Readers are cautioned that the foregoing list of important factors is 
not exhaustive and that these factors and risks are difficult to 
predict. Actual results might differ materially from results suggested 
in any forward-looking statements.  Falcon assumes no obligation to 
update the forward-looking statements, or to update the reasons why 
actual results could differ from those reflected in the forward 
looking-statements unless and until required by securities laws 
applicable to Falcon. Additional information identifying risks and 
uncertainties is contained in Falcon's filings with the Canadian 
securities regulators, which filings are available at 
https://www.globenewswire.com/Tracker?data=8c0Yog3k0tBp96dvcYu6NdQAnJSfxPbWOR0n6M7R8T1PGId47N--md5Cvx6IZah6qm2Isslxr7wMd0GlDXHdhw== 
www.sedar.com, including under "Risk Factors" in the Annual Information 
Form. 
 
   Neither the TSX Venture Exchange nor its Regulation Services Provider 
(as that term is defined in the policies of the TSX Venture Exchange) 
accepts responsibility for the adequacy or accuracy of this release. 
 
 
 
 

(END) Dow Jones Newswires

April 07, 2020 02:00 ET (06:00 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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