Falcon Oil & Gas agreement for Beetaloo permits

2011-07-13 18:44 ET - Property Agreement

The TSX Venture Exchange has accepted for filing documentation pertaining to an agreement dated April 28, 2011, between Falcon Oil & Gas Australia Limited -- a 73-per-cent-owned subsidiary of Falcon Oil & Gas Ltd. -- and Hess Australia Beetaloo Pty. Ltd. Pursuant to the terms of the agreement, Hess shall have the option to acquire up to a 62.5-per-cent interest in three exploration permits in the Beetaloo basin, Northern Territory, Australia, area.

As consideration, Hess must pay Falcon Australia $17.5-million (U.S.) and undertake a seismic acquisition program with a cost of at least $40-million (U.S.). Hess will pay Falcon Australia $2-million (U.S.) for Falcon Australia's data acquired from the testing of prospective intervals in the Senandoah-1 wellbore. Hess will also pay $2.5-million (U.S.) to the company and will be issued 10 million warrants (each warrant is exercisable into one common share of the company at a price of 19 cents per share from Nov. 14, 2011, until Jan. 13, 2015).

For further information, please refer to the company's press releases dated Feb. 22, 2011, May 2, 2011, and July 13, 2011