Your account already exists. Please login first to continue managing your settings.
The Northern Territory Department of Mines and Energy (DME) has granted a 12-month extension to Falcon Oil & Gas Ltd. for each of the permits EP76, EP98, and EP117 which include the majority of the 7 million acres in the Beetaloo basin in Australia, the company reported.
The permits are held 100% by Falcon Oil & Gas Australia Ltd., a 73% owned subsidiary of Falcon.
Separately, the DME also granted a 12-month extension to Falcon for adjacent EP99, which is the permit held 100% by Falcon Oil & Gas Australia Ltd. and which is excluded from the farm-out arrangement with Hess.
The extensions allow Hess Australia (Beetaloo) Pty Ltd. adequate time to complete the shooting and processing of 3,600 km (2,237 miles) of 2D seismic. A date of no later than June 30, 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 also will receive an additional 37.5% carry on the first development well up to a gross cost of US $10 million.