Falcon Gets Nod for Sweetpea's Stake in Australian Unit

Falcon Oil & Gas Ltd. announced that, further to its press release dated May 24, 2013, it has received approval from the shareholders of Falcon Oil & Gas Australia Limited (FOGA) for the acquisition of Sweetpea Petroleum Pty Ltd’s (Sweetpea) 50 million shares or 24.22 percent interest in FOGA. Closing of the acquisition is anticipated to occur within the next 5 business days and is subject to TSX Venture Exchange final approval.

FOGA is a subsidiary of Falcon and is the registered holder of four exploration permits in the Beetaloo Basin, Northern Territory, Australia. Following the completion of the Share Purchase, Falcon will own 200 million shares in FOGA representing 96.90 percent of the issued share capital of FOGA.

The terms of the Agreement, as announced on May 24, 2013, included a cash consideration of $3 million together with the issue of 97.86 million Falcon shares (New Falcon Shares) to Sweetpea. Based on Falcon’s share price, at the time the Share Purchase was agreed between the parties of $0.19 (CAD 0.20), the total value of the consideration is $21.8 million (CAD 22.6 million). Sweetpea, a wholly owned subsidiary of PetroHunter Energy Corporation will own 10.7 percent of the issued share capital of Falcon.

The New Falcon Shares will be held in an Escrow account with the New Falcon Shares locked up for three years, and Sweetpea, commencing on the day after the closing date will be permitted to sell 15 percent each year during the lock up period.

Philip O’Quigley, CEO of Falcon commented:

“We look forward to completing this successful consolidation of our interest in this high potential asset in the Beetaloo Basin, Northern Territory, Australia. The extensive seismic program carried out and funded by Hess over the past two years added to our confidence in the resource potential of this very prolific basin.”


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