Falcon Optimises its Interest in the Beetaloo
25/03/2024 07:00
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Falcon Oil & Gas Ltd.
(“Falcon”)
Falcon Optimises its Interest in the Beetaloo
25 March 2024 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) announces that it
has elected to reduce its working interest in the proposed Shenandoah South
Pilot Project (“Pilot) from 22.5% to 5%. This optimises Falcon’s interest
in the Beetaloo, since Falcon will only have to pay for 5% of the costs of the
two wells to be drilled in 2024 as part of the Pilot but will still retain a
10% working interest in the enlarged area of circa 72,000 acres around the
Pilot and a 22.5% working interest in the remaining 4.52 million acres.
Key Highlights
* The election by Falcon to reduce its working interest to 5% will
significantly reduce Falcon’s cost to participate in the Pilot.
* Falcon also retains the benefit of a further A$16.67m (US$11m) of gross
carry that will be used to offset against the costs of the Pilot in 2024,
thereby further reducing Falcon’s cost to participate.
* Falcon participated in the SS1-H well in 2023 at its 22.5% working interest
which created a Drill Spacing Unit (“DSU”) of 20,480 acres.
* The two wells in the 2024 drilling program will create two new DSU’s
totalling 51,200 acres in which Falcon will participate and retain a working
interest at 5%.
* Falcon’s combined weighted average ownership and future participation
entitlement of this enlarged area of 72,000 acres post the Pilot will be 10%.
* Falcon retains its full 22.5% participation interest in the remaining 4.52
million acres in the Beetaloo, net 1 million acres to Falcon.
Philip O’Quigley, CEO of Falcon commented:
“Falcon’s election to reduce its participating interest to 5% in the Pilot
is a prudent use of our capital resources as it significantly reduces our cost
exposure. Post a successful Pilot, Falcon will own a weighted average interest
of 10% in the enlarged area of around 72,000 acres around the Pilot and will
be able to participate in any future development of this area, whilst still
retaining 22.5% interest in the remaining 4.52 million acres. This election by
Falcon demonstrates our ability to optimise our interest in the Beetaloo for
the benefit of shareholders.
Ends.
EP 98/117 interests
Company Interest
Tamboran (B2) Pty Limited 77.5%
Falcon Oil and Gas Australia Limited (Falcon) 22.5%
Total 100.0%
Shenandoah South-1 DSU – 20,480 acres
Company Interest
Tamboran (B2) Pty Limited 77.5%
Falcon Oil and Gas Australia Limited (Falcon) 22.5%
Total 100.0%
Shenandoah South-2 DSU – 51,200 acres
Company Interest
Tamboran (B2) Pty Limited 95.0%
Falcon Oil and Gas Australia Limited (Falcon) 5.0%
Total 100.0%
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 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 2024 drilling program, the cost of
the wells to be drilled as part of the Pilot and Falcon’s working interest
in the Pilot and the enlarged area around the Pilot. 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.
The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No
596/2014 which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon publication of this announcement, this inside information is
now considered to be in the public domain