Falcon completes agreements on Australian Beetaloo basin

Falcon Oil & Gas Australia has completed its farm-out agreement and joint-operating agreement with Origin Energy Resources and Sasol Petroleum Australia on Beetaloo basin.

The deals allow Origin Energy and Sasol Petroleum to farm into 35% of Falcon’s exploration permits in the Beetaloo basin, Australia.

Falcon, which will retain a 30% stake in the permits, has received A$20m ($18m) cash from both companies.

Origin Energy and Sasol Petroleum will undertake a nine-well exploration and appraisal programme in the next four years.

The companies will invest A$64m ($59m) on the first phase of five wells, while the second phase of horizontal drilling is expected to cost around A$100m.

The drilling programme is expected to start by mid-2015.

Falcon said the drilling will be designed and targeted to take the project towards commerciality.

Falcon Oil & Gas CEO Philip O’Quigley said: "I am delighted to announce we have completed the agreements with Origin and Sasol for our transformational farm-out of our Beetaloo acreage.

"Together with A$20m cash up front, the deal is worth up to approximately A$200m to Falcon.

"We look forward to the immediate commencement of the nine-well exploration and appraisal programme."

Falcon acquires, explores and develops conventional and unconventional oil and gas assets; its current portfolio is spread across Australia, South Africa and Hungary.