Binding Term Sheet for Gas Sales Agreement to supply pilot gas to the Northern Territory Government
23/04/2024 07:00
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Falcon Oil & Gas Ltd.
(“Falcon”)
Binding Term Sheet for Gas Sales Agreement to supply pilot gas to the Northern
Territory Government
23 April 2024 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to
announce that the Beetaloo Joint venture (BJV) has signed a Binding Agreement
for a long-term Gas Sales Agreement (GSA) to supply the Northern Territory
Government (Buyer) with 14.6 PJ (13.8 BCF) per annum from the proposed
Shenandoah South Pilot Project for an initial term of nine years, with a
Buyer’s option to extend for a further six-and-a-half years.
Details of the Binding Agreement are as follows:
* Gas will be delivered to the APA-owned Amadeus Gas Pipeline (AGP) on a
take-or-pay basis at a market-competitive gas price, escalating at 100% of the
Consumer Price Index (CPI). The Buyer’s extension option is at a slightly
discounted price.
* The Agreement is a binding supply commitment conditional on the BJV entering
into a binding Gas Transportation Agreement with APA on the proposed Sturt
Plateau Pipeline, a binding Gas Processing Agreement for the proposed Sturt
Plateau Compression Facility, reaching a Final Investment Decision (FID) on
upstream drilling activity and receiving all necessary approvals to proceed
with these projects.
* The BJV is targeting FID on the proposed 40 TJ (38,000 MCF/D) per day
upstream drilling program in mid-2024, subject to securing funding and key
regulatory and stakeholder approvals. First gas flow is planned for H1 2026.
* Falcon Oil & Gas Australia Limited holds a 5% working interest in the
51,200-acre area that will include the wells required to deliver the proposed
Pilot Project volumes.
Philip O’Quigley, CEO of Falcon commented:
“This is a significant development for Beetaloo Joint Venture, and
represents a major milestone and puts the Beetaloo Joint Venture on a path
where revenue from gas sales will support funding our future development
phases, including supply to the East Coast and LNG gas markets.”
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
Cavendish Capital Markets Limited (NOMAD & Joint Broker)
Neil McDonald / Adam Rae +44 131 220 9771
Tennyson Securities (Joint Broker)
Peter Krens +44 20 7186 9033
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
www.falconoilandgas.com.
About Beetaloo Joint Venture (“BJV”) (EP 76, 98 and 117)
EP 98/117 interests
Company Interest
Tamboran (B2) Pty Limited 77.5%
Falcon Oil & Gas Australia Limited (Falcon Australia) 22.5%
Total 100.0%
Shenandoah South-1 DSU – 20,480 acres
Company Interest
Tamboran (B2) Pty Limited 77.5%
Falcon Oil & Gas Australia Limited (Falcon Australia) 22.5%
Total 100.0%
Shenandoah South-2 DSU – 51,200 acres
Company Interest
Tamboran (B2) Pty Limited 95.0%
Falcon Oil & Gas Australia Limited (Falcon Australia) 5.0%
Total 100.0%
Glossary
BCF Billion cubic feet
FID Final investment decision
MCF/D Thousand cubic feet per day
PJ PetaJoules
TJ Terajoule
About Tamboran B2 Pty Limited
Tamboran (B1) Pty Limited is the 100% holder of Tamboran B2 Pty Limited, with
Tamboran B1 being a 50:50 joint venture between a subsidiary of Tamboran
Resources Limited and Daly Waters Energy, LP.
Tamboran Resources Limited, is a natural gas company listed on the ASX (TBN)
and U.S. OTC markets (TBNNY). Tamboran is focused on playing a constructive
role in the global energy transition towards a lower carbon future, by
developing the significant low CO(2) gas resource within the Beetaloo Basin
through cutting-edge drilling and completion design technology as well as
management’s experience in successfully commercialising unconventional shale
in North America.
Bryan Sheffield of Daly Waters Energy, LP is a highly successful investor and
has made significant returns in the US unconventional energy sector in the
past. He was Founder of Parsley Energy Inc. (“PE”), an independent
unconventional oil and gas producer in the Permian Basin, Texas and previously
served as its Chairman and CEO. PE was acquired for over US$7 billion by
Pioneer Natural Resources Company (“Pioneer”), itself a leading
independent oil and gas company and with the PE acquisition became a Permian
pure play company. Pioneer has a current market capitalisation of c. US$53
billion.
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”, “consider” “potential”, “scheduled”,
“forecast”, “outlook”, “budget”, “hope”, “suggest”,
“support” “planned”, “approximately”, “potential” or the
negative of those terms or similar words suggesting future outcomes. In
particular, forward-looking information in this press release includes, but is
not limited to, information relating to the signed Binding Agreement for a
long-term GSA suppling the Buyer with 14.6 PJ (13.8 BCF) per annum from the
proposed Shenandoah South Pilot Project for an initial term of nine years,
with a Buyer’s option to extend for a further six-and-a-half years, to gas
being delivered to the APA-owned AGP on a take-or-pay basis at a
market-competitive gas price, escalating at 100% of the CPI, the Buyer’s
extension option being at a slightly discounted price, the Agreement being a
binding supply commitment conditional on the BJV entering into a binding Gas
Transportation Agreement with the APA on the proposed Sturt Plateau Pipeline,
a binding Gas Processing Agreement for the proposed Sturt Plateau Compression
Facility, reaching a FID on upstream drilling activity and receiving all
necessary approvals to proceed with these projects, targeting FID on the
proposed 40 TJ (38,000 MCF/D) per day upstream drilling program in mid-2024,
to securing funding, key regulatory and stakeholder approvals and to the first
gas flow planned for H1 2026.
This information is based on current expectations that are subject to
significant risks and uncertainties that are difficult to predict. The risks,
assumptions and other factors that could influence actual results include
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 www.sedarplus.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