I read that the farm out is close to being done, who wants it wants to keep more of the profit and is pushing Falcon to get rid of the over riding royalities. The price is high which is good for us, because we will be paid back many times over for this work. The royality owners are trading future income for now money.

• FOGA will make a payment to TOG Group of US$5m to acquire 5% (five eighths) of their ORRI only on completion of a Beetaloo farm-out transaction acceptable to Falcon
• TOG Group will grant FOGA a five year call option to acquire a further 2% (one quarter) of their ORRI for a payment of US$15m
• All ORRIs acquired under the Agreement will be immediately cancelled by FOGA
• TOG Group will retain a 1% ORRI

Philip O'Quigley, CEO of Falcon commented:

"We are delighted to have concluded a further significant reduction in the private Overriding Royalty Interest over our Australian assets.

This transaction, combined with the ORRI transaction announced on the 1st November 2013, will allow for the reduction of the privately held Overriding Royalty Interests from 12% to just 1% and will help to further progress our farm-out negotiations, which are at an advanced stage.