TIDMFOG
Falcon Oil & Gas Ltd.
("Falcon" or "Company")
Binding Letter of Intent Executed with New Joint Venture
Partner
11 October 2022 -- Falcon Oil & Gas Ltd. (TSXV: FO, AIM:
FOG) is pleased to announce that its c.98% owned subsidiary, Falcon
Oil & Gas Australia Limited ("Falcon Australia"), has entered
into a binding Letter of Intent ("LOI") with Tamboran (B1) Pty
Limited ("Tamboran"), a joint venture between Sheffield Holdings LP
and Tamboran Resources Limited, pursuant to which the parties have
agreed to amend the terms of the Joint Operating Agreement ("JOA")
and the Farm-In Agreement ("FIA"), each dated 2 May 2014 (as
amended), entered into with Origin Energy B2 Pty Ltd ("Origin") in
respect of Falcon Australia's interest in the Beetaloo Sub-Basin
exploration permits.
The Board believes that the proposed amendments to the FIA and
JOA will significantly improve Falcon's future capital preservation
and optionality. The key terms of the LOI provide for:
-- Falcon Australia to earn an additional carry on future well costs of up
to AU$30m (AU$6.75m net to Falcon Australia);
-- the introduction of limited proration units on sole risk operations to a
maximum of 6,400 acres per well, providing Falcon Australia with
participation optionality on the drilling of future wells;
-- the sharing of well data on any sole risked wells, providing Falcon
Australia with visibility on crucial data and analysis even where it
elects not to participate; and
-- pre-emptive rights in relation to Origin's divestment of its 77.5%
interest in the Beetaloo Sub-basin announced on 19 September 2022 are not
to be exercised by Falcon Australia and all pre-emptive and similar
rights are to be removed from the JOA, providing Falcon Australia with
greater flexibility for realisation of licence interests.
The parties will now proceed to negotiate and agree fully termed
amendments to the JOA and the FIA reflecting the terms of the
LOI.
Drilling of the first of the two Stage 3 wells will commence
shortly with Falcon Australia still benefiting financially from the
remainder of the carry under the existing FIA and JOA with
Origin.
Philip O'Quigley, Falcon's CEO, commented:
"Falcon Australia welcomes its new JV partners, Sheffield
Holdings and Tamboran Resources. While our immediate focus is on
the two Stage 3 Amungee wells, we are really excited about the
future pace of development of the Beetaloo. The proposed amendments
to the FIA and JOA puts Falcon in a very strong position going
forward creating optionality for our shareholders in terms of the
level of participation in any future appraisal and development
drilling. Each future well drilled in the Beetaloo basin play
further de-risks the play and, as a result of the proposed changes
contemplated by the LOI, Falcon can tailor its participation to
best preserve its capital while at the same time maximising its
optionality."
Investor Meet Q&A
Falcon will provide a live Investor Q&A with Philip
O'Quigley via the Investor Meet Company platform today, 11 October
2022 at 10:00am BST.
The presentation is open to all existing and potential
shareholders, and questions can be submitted at any time during the
live presentation.
Investors can sign up to Investor Meet Company for free and add
to meet Falcon Oil & Gas Ltd. via:
https://www.investormeetcompany.com/falcon-oil-gas-ltd/register-investor
Investors who already follow Falcon Oil & Gas Ltd. on the
Investor Meet Company platform will automatically be invited.
A recording of the presentation will be made available on the
Investor Meet Company platform and the Company's website later
today.
This contains inside information.
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 (B1) Pty Limited
Tamboran (B1) Pty Limited is a 50:50 joint venture between
Tamboran Resources Limited and Sheffield Holdings, LP.
Tamboran Resources Limited, founded in 2009, is a public natural
gas company listed on the ASX (TBN) and OTC markets (TBNNY). It has
a vision of supporting the net zero CO(2) energy transition in
Australia and Asia-Pacific through developing low CO(2)
unconventional gas resources in the Northern Territory of
Australia. It is headquartered in Sydney, Australia with a global
management team leveraging a significant depth of experience in the
successful commercialisation of unconventional gas throughout North
America. The team brings a wealth of knowledge, including modern
shale reservoir assessment, as well as cutting-edge drilling and
completion design technology.
Bryan Sheffield of Sheffield Holdings 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$60
billion.
Glossary of terms
A$ Australian Dollar
FIA Farmin agreement dated 2 May 2014 as amended from
time to time
JOA Joint Operating Agreement dated 2 May 2014 as
amended from time to time
Proration unit Acreage assigned to the area around a well where
sole risk operations take place
Sole risk operations An operation carried out by fewer than all parties
to the joint venture
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", "suggest",
"support" "planned", "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 letter of intent
executed, proposed amendments to the JOA and FIA, limited proration
units on sole risk operations providing future participation
optionality and future sole risk operations and information
relating to the Company's drilling program. 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
October 11, 2022 02:00 ET (06:00 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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