Falcon Oil & Gas Australia, a subsidiary of Falcon Oil & Gas, has signed a participation agreement with Hess Australia to acquire an interest in onshore exploration permits 76, 98 and 117 in the Beetaloo Basin, Northern Territory, Australia.
According to the agreement, Hess will earn a 62.5% interest in 25,200 square kilometres by making a payment to Falcon Australia and acquiring warrants in Falcon Oil & Gas.
Hess will conduct an extensive seismic programme and will drill five wells to explore and appraise the agreement area.
Hess will have the right to withdraw from the project following the seismic evaluation and again following the drilling phase, in which event the entire interest will transfer back to Falcon Australia.
Later, Falcon Australia can retain a 100% ownership in the entire EP99 area and 405 square kilometres in EP98.