Falcon Oil & Gas Beetaloo basin property agreement

2009-06-17 16:59 ET - Property Agreement

The TSX Venture Exchange has accepted for filing documentation pertaining to a non-arm's-length second purchase and sale agreement dated May 26, 2009, between PetroHunter Energy Corp., PetroHunter Operating Co., Sweetpea Petroleum Pty. Ltd. (collectively, the PetroHunter parties); Falcon Oil & Gas Ltd., Falcon Oil & Gas USA Inc. and Falcon Oil & Gas Australia Pty. Ltd. (collectively, the Falcon parties).

Pursuant to the agreement, the Falcon parties shall acquire an additional 25-per-cent interest in their permits, forming Sweetpea Petroleum Pty. Ltd.'s interest in seven million net mineral areas in the Beetaloo basin, Australia (the Beetaloo basin project), and become the operator of the Beetaloo basin project. The Falcon parties already own a 50-per-cent interest in the Beetaloo basin project. The Falcon parties shall also acquire 100 per cent in PetroHunter's rights in approximately $350,000 (U.S.) in operator cash bonds currently posted by PetroHunter in Australia, and all personal property held by PetroHunter and used in connection with the Beetaloo basin project.

As consideration, the Falcon parties shall forgive the loan of $5-million (U.S.) owed by PetroHunter, release its interest in a mortgage given by PetroHunter, which secures the loan, transfer to PetroHunter its rights in $875,000 (U.S.) capital previously contributed for the development of the Buckskin Mesa project, assume all Beetaloo payables in an amount not exceeding $1.5-million (Australian), and reassign its 25-per-cent initial interest in the Buckskin Mesa project to PetroHunter.

For further information, please refer to the exchange bulletins dated Sept. 23, 2008, and Oct. 1, 2008, and the company's news releases dated April 27, 2009, May 27, 2009, and June 16, 2009, in Stockwatch.