Falcon Oil & Gas Ltd. (TSXV:FO) announced that it has been granted one-year extensions for three permits in Australia’s Beetaloo Basin, as well as for one other adjacent permit. The permits are wholly owned by Falcon Oil & Gas Australia Ltd., the company’s subsidiary.
Significance of the first three extensions, as quoted in the press release:
- The extensions allow Hess Australia (Beetaloo) Pty Limited adequate time to complete the shooting and processing of 3,600km of 2D seismic.
- A date of no later than 30th June 2013 has now been agreed with Hess, whereby Hess must exercise its option to elect to drill, or not as the case may be, five exploration wells to earn 62.5% in EPs 76, 98 and 117.
- In the event that Hess elects to drill the five exploration wells, Falcon will be fully carried for its 37.5% of the five well exploration program.
- Falcon will also receive an additional 37.5% carry on the first development well up to a gross cost of US$10MM.