Falcon Oil & Gas Ltd. has completed its Farm-Out Agreement and Joint Operating Agreement (collectively "the Agreements") with Origin Energy Resources Limited, a subsidiary of Origin Energy Limited (Origin) and Sasol Petroleum Australia Limited, a subsidiary of Sasol Limited (Sasol), (collectively referred to herein as the "Farminees"), each farming into 35% of Falcon's Exploration Permits in the Beetaloo Basin, Australia (the "Permits").
Key transaction details are:
◾ Falcon retains a 30% interest in the Permits.
◾ Falcon has received A$20 million cash from the Farminees.
◾ Origin is appointed as Operator with immediate effect.
◾ Farminees to carry Falcon in a nine well exploration and appraisal program over the next four years, detailed as follows:
◾ 3 vertical exploration/stratigraphic wells and core studies;
◾ 1 hydraulic fracture stimulated vertical exploration well and core study;
◾ 1 hydraulic fracture stimulated horizontal exploration well, commercial study and 3C resource assessment; and
◾ 4 hydraulic fracture stimulated horizontal exploration/appraisal wells, micro-seismic and 90 day production tests.