Falcon Farms Out Stake in Unconventional Permits in Beetaloo Basin in Australia

Falcon Oil & Gas has inked a farm-out agreement and joint operating agreements with Origin Energy Resources, a subsidiary of Origin Energy, and Sasol Petroleum Australia, a subsidiary of Sasol, to each farm into 35% of Falcon's unconventional exploration permits in the Beetaloo Basin, Australia.

Falcon will get $20 million cash on completion of the agreement. Origin will be the operator.

“Origin brings with it an enormous wealth of expertise as an unconventional operator in Australia. Sasol, through its interest in the Montney unconventional shale play in North America brings with it enormous expertise of operating unconventional shale plays and is a world leader in gas to liquids. In addition, Origin and Sasol offer many potential options for the monetisation of any natural gas discovered on the permits,” Philip O'Quigley, CEO of Falcon commented. 

As per the deal nine exploration wells would be drilled during the five year period. Drilling is expected to commence once the agreement is officially completed.