Falcon Oil & Gas Ltd. (the Company or the Group) announced Friday that it has filed its results for the 3 and 6 months ended June 30.
The following should be read in conjunction with the complete Interim Financial Statements and the accompanying Management’s Discussion and Analysis for the 3 and 6 months period ended June 30 filed with the TSXV. These filings are available at www.sedar.com and www.falconoilandgas.com.
Philip O’Quigley, CEO of Falcon commented:
“2014 has been a busy year thus far for the Group with the execution and completion of the Agreements with Origin and Sasol of our Beetaloo permits in the Northern Territory, Australia. Together with the $18.7 million (AUD 20 million) cash received, the deal is worth up to approximately $187 million (AUD 200 million) to Falcon. I look forward to updating the market and making further announcements on the Group’s progress throughout the remainder of the year.”
Farm-out of Beetaloo permits, Northern Territory, Australia
On Aug. 21, Falcon completed its Farm-Out Agreement and Joint Operating Agreement with Origin and Sasol each farming into 35 percent of Falcon’s exploration permits in the Beetaloo Basin, Australia. The main transaction details are:
Overriding Royalty Agreements
In addition at completion of Falcon’s Beetaloo Farm-out, Falcon paid Malcolm John Gerrard, Territory Oil & Gas LLC and Tom Dugan Family Partnership LLC (TOG Group) $5 million to acquire 5 percent; and CR Innovations AG (CRIAG) $999,000 to acquire 3 percent of their respective Overriding Royalties over Falcon’s Exploration Permits in the Beetaloo Basin. The Overriding Royalty is now at 4 percent. Falcon and the Farminees have the option to reduce this Royalty further to 1 percent by the exercise of two 5 year call options. The call options will be funded by Falcon and each of the Farminees in proportion to their interest in the permits.
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