Falcon Oil & Gas has negotiated a two-year extension of ORRI call option
From WorldOil.com
DUBLIN — Falcon Oil & Gas Ltd. has announced that Falcon Oil & Gas Australia Ltd. has successfully negotiated a two-year extension of the call option (the Extension) to acquire it’s 30% portion of the 2% ORRI from the TOG Group. The Extension will be submitted to the Northern Territory Government, Australia, for review, approval and registration if required.
Background
In December 2013, Falcon entered an agreement with the TOG Group to acquire 7% (seven-eighths) of their 8% private ORRI over the Beetaloo Sub-basin exploration permits. Falcon made a payment to the TOG Group of $5 million to acquire 5% (five-eighths) of their ORRI on completion of a Beetaloo farm-out transaction. The TOG Group granted Falcon and Origin Energy B2 Pty Ltd. (Origin) a five-year call option in proportion to their Participating Interest to acquire a further 2% (two-eighths) of their ORRI for a payment of $15 million. The TOG Group retains a 1% ORRI. The call option is due to expire on August 22, 2019.
The Extension granted to Falcon does not change the rights or obligations for Origin under the original call option agreement.
Philip O’Quigley, CEO of Falcon, commented:
“Falcon had originally envisaged the call option decision would follow the completion of the Beetaloo work program under the 2014 Farmin Agreement with Origin. In consideration of the delays to the work program due to the moratorium on hydraulic fracture stimulation in the Northern Territory, this two-year Extension enables Falcon to further progress the Beetaloo work program, allowing Falcon make a more informed decision with the additional work completed while providing greater financial flexibility over the next couple of years.”
