Falcon Oil & Gas Ltd.: Australia Beetaloo Basin Agreement to Reduce Overriding Royalty to 1%
17 Dezembro 2013 - 5:00AM
Marketwired
Falcon Oil & Gas Ltd.: Australia Beetaloo Basin Agreement to
Reduce Overriding Royalty to 1%
DUBLIN, IRELAND--(Marketwired - Dec 17, 2013) - Falcon Oil &
Gas Ltd. (TSX-VENTURE:FO)(AIM:FOG)(ESM:FAC) ("Falcon" or the
"Company") announces that its subsidiary, Falcon Oil & Gas
Australia Ltd ("FOGA"), has entered into an Agreement ("the
Agreement)" with Malcolm John Gerrard, Territory Oil & Gas LLC
and Tom Dugan Family Partnership LLC ("TOG Group") to acquire up to
7% (seven eighths) of the remaining 8% private Overriding Royalty
Interest ("ORRI") over FOGA's Exploration Permits in the Beetaloo
Basin for the following consideration:
- FOGA will make a payment to TOG Group of US$5m to acquire 5%
(five eighths) of their ORRI only on completion of a Beetaloo
farm-out transaction acceptable to Falcon
- TOG Group will grant FOGA a five year call option to acquire a
further 2% (one quarter) of their ORRI for a payment of US$15m
- All ORRIs acquired under the Agreement will be immediately
cancelled by FOGA
- TOG Group will retain a 1% ORRI
Philip O'Quigley, CEO of Falcon commented:
"We are delighted to have concluded a further significant
reduction in the private Overriding Royalty Interest over our
Australian assets.
This transaction, combined with the ORRI transaction announced
on the 1st November 2013, will allow for the reduction of the
privately held Overriding Royalty Interests from 12% to just 1% and
will help to further progress our farm-out negotiations, which are
at an advanced stage.
We have now completed two agreements to acquire 8% of the
privately held Overriding Royalty Interests at a total cost of just
$7m, of which $6m is payable only upon completion of a farm-out
acceptable to Falcon. In addition, we have secured agreement to
acquire a further 3% based on two five year call options granted to
Falcon at a future combined cost of $20m leaving only a 1% Royalty
in private hands."
About Falcon Oil & Gas Ltd.
Falcon is an international oil & gas company engaged in the
acquisition, exploration and development of conventional and
unconventional oil and gas assets, with the current portfolio
spread between Australia, South Africa and Hungary. Falcon is
incorporated in British Columbia, Canada and headquartered in
Dublin, Ireland with a technical team based in Budapest, Hungary.
FOGA is a 98% subsidiary of Falcon and is the registered holder of
four Exploration Permits covering seven million acres in the
Beetaloo Basin, Northern Territory, Australia.
About the Overriding Royalty Interests
The total amount of the private ORRI's is 12%. The ORRI entitles
its owners to earn 12% of the gross well head proceeds of any
future production, subject only to transportation and marketing
costs. The TOG Group, predominately based in the USA is the owner
of 8% with the balance of 4% being held by CR Innovations. The
privately held ORRI's were created during the years 2006 to 2008
when the Exploration Permits were sold by their original
owners.
For further information on Falcon Oil & Gas Ltd. please
visit www.falconoilandgas.com.
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.
Certain information in this press release may constitute
forward-looking information, including comments made with respect
to when payments due under the agreement will be made. This
information is based on current expectations that are subject to
significant risks and uncertainties that 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.
Falcon Oil and Gas Ltd.+353 1 417
1900www.falconoilandgas.comFalcon Oil and Gas Ltd.Philip
O'QuigleyCEO+353 87 814 7042Falcon Oil and Gas Ltd.John
CravenNon-Executive Chairman+353 1 417 1900FTI ConsultingEdward
Westropp+44 207 269 7230FTI ConsultingNatalia Erikssen+44 207 269
9348Davy (NOMAD & Joint Broker)John Frain+353 1 679 6363Davy
(NOMAD & Joint Broker)Anthony Farrell +353 1 679 6363GMP
Securities Europe LLP (Joint Broker)Rob Collins+44 20 7647 2800GMP
Securities Europe LLP (Joint Broker)Liz Williamson+44 20 7647
2800Cantor Fitzgerald Europe (Joint Broker)David Porter+44 207 894
7000Cantor Fitzgerald Europe (Joint Broker)Richard Redmayne+44 207
894 7000
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