TIDMFOG
Falcon Oil & Gas Ltd.
("Falcon" or "Company")
Farm-in Carry Commitments
25 August 2023 -- Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG)
notes that Falcon Oil & Gas Australia Limited's ("Falcon
Australia") joint venture partner, Tamboran (B2) Pty Limited
("Tamboran"), has given notice that the 2014 farm-in commitments
have now been met, having reached the associated cost carry
commitment of A$264 million.
Falcon Australia has been carried by its partners, formerly
Origin Energy and more recently Tamboran since 2014 through the
drilling and testing of five vertical wells and three horizontal
wells. The wells have delivered key information of the continuous
nature and productivity of the Amungee Member B-shale across the
Beetaloo Sub-basin, Northern Territory, Australia. The gross carry
of A$264 million was in addition to the uncapped carry for Stage 1
of the three stage work programme which amounted to approximately
A$85 million, with total spend in the Beetaloo to date by Falcon
Australia's current and previous joint venture partners totalling
A$349 million.
Falcon Australia benefits from an additional carry on future
well costs of up to A$30m (AU$6.75m net to Falcon Australia split
between 2023 and 2024) under the terms of the binding letter of
intent as announced on 11 October 2022, when Tamboran acquired
Origin Energy B2 Pty Limited's participating interest in the
exploration permits.
Falcon also has optionality in respect of its exposure to future
activity within the exploration permits and is able to elect to
participate up to 22.5 per cent on future wells following the
introduction of drilling spacing units ("DSUs") (formerly referred
to as "proration units") on sole risk operations as part of the
binding letter of intent announced on 11 October 2022. Wells
drilled outside of an existing DSU establish a new DSU. The size of
the DSU varies depending on (a) the type and length of the well to
be drilled and (b) whether or not the well is classified as a
"commitment well" under the terms of the exploration permit. A
non-commitment well creates a DSU to a maximum of 6,400 acres,
while a commitment well creates a DSU to a maximum of 25,600 acre.
This flexibility ensures that Falcon Australia can tailor its
participation in each proposed well to best preserve its capital
while at the same time maximising exposure to the development of
the Beetaloo.
Falcon's group bank balance as of 24 August 2023 was US$15.3
million and thus it remains in a strong financial position.
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
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 ("Tamboran B1") is the 100% holder of
Tamboran B2 Pty Limited, with Tamboran B1 being a 50:50 joint
venture between Tamboran Resources Limited and Daly Waters Energy,
LP (Sheffield).
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$60
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
how the wells drilled to date have delivered key information of the
continuous nature and productivity of the Amungee Member B-shale
across the Beetaloo Sub-basin; optionality in respect of its
exposure to future activity within the exploration permits; DSUs
and sole risk operations; flexibility so Falcon Australia can
tailor its participation in each proposed well to best preserve its
capital while at the same time maximising exposure to the
development of the Beetaloo.. 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.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
August 25, 2023 02:14 ET (06:14 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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