Falcon Oil & Gas Ltd - Binding Term Sheet for Gas Sales Agreement to supply pilot gas to the Northern Territory Government
23 Aprile 2024 - 8:00AM
UK Regulatory
Falcon Oil & Gas Ltd - Binding Term Sheet for Gas Sales
Agreement to supply pilot gas to the Northern Territory Government
Falcon Oil & Gas Ltd.
(“Falcon”)
Binding Term Sheet for Gas Sales
Agreement to supply pilot gas to the Northern Territory
Government
23 April 2024 - Falcon Oil & Gas Ltd. (TSXV:
FO, AIM: FOG) is pleased to announce that the Beetaloo Joint
venture (BJV) has signed a Binding Agreement for a long-term Gas
Sales Agreement (GSA) to supply the Northern Territory Government
(Buyer) with 14.6 PJ (13.8 BCF) per annum from the proposed
Shenandoah South Pilot Project for an initial term of nine years,
with a Buyer’s option to extend for a further six-and-a-half
years.
Details of the Binding Agreement are as
follows:
-
Gas will be delivered to the APA-owned Amadeus Gas Pipeline (AGP)
on a take-or-pay basis at a market-competitive gas price,
escalating at 100% of the Consumer Price Index (CPI). The Buyer’s
extension option is at a slightly discounted price.
-
The Agreement is a binding supply commitment conditional on the BJV
entering into a binding Gas Transportation Agreement with APA on
the proposed Sturt Plateau Pipeline, a binding Gas Processing
Agreement for the proposed Sturt Plateau Compression Facility,
reaching a Final Investment Decision (FID) on upstream drilling
activity and receiving all necessary approvals to proceed with
these projects.
-
The BJV is targeting FID on the proposed 40 TJ (38,000 MCF/D) per
day upstream drilling program in mid-2024, subject to securing
funding and key regulatory and stakeholder approvals. First gas
flow is planned for H1 2026.
-
Falcon Oil & Gas Australia Limited holds a 5% working interest
in the 51,200-acre area that will include the wells required to
deliver the proposed Pilot Project volumes.
Philip O’Quigley, CEO of Falcon
commented:
“This is a significant development for Beetaloo Joint Venture, and
represents a major milestone and puts the Beetaloo Joint Venture on
a path where revenue from gas sales will support funding our future
development phases, including supply to the East Coast and LNG gas
markets.”
Ends.
CONTACT DETAILS:
Falcon Oil & Gas Ltd.
|
+353 1 676 8702 |
Philip O'Quigley, CEO |
+353 87 814 7042 |
Anne Flynn, CFO |
+353 1 676 9162 |
|
Cavendish Capital Markets Limited (NOMAD
& Joint Broker) |
Neil McDonald / Adam Rae |
+44 131 220 9771 |
|
|
Tennyson Securities (Joint Broker) |
|
Peter Krens |
+44 20 7186 9033 |
About Falcon Oil & Gas
Ltd.
Falcon Oil & Gas Ltd is an international oil & gas company
engaged in the exploration and development of unconventional oil
and gas assets, with the current portfolio focused in Australia,
South Africa and Hungary. Falcon Oil & Gas Ltd is incorporated
in British Columbia, Canada and headquartered in Dublin, Ireland
with a technical team based in Budapest, Hungary.
Falcon Oil & Gas Australia Limited is a c.
98% subsidiary of Falcon Oil & Gas Ltd.
For further information on Falcon Oil & Gas
Ltd. please visit www.falconoilandgas.com.
About Beetaloo Joint Venture (“BJV”) (EP
76, 98 and 117)
EP 98/117 interests
Company |
Interest |
Tamboran (B2) Pty Limited |
77.5% |
Falcon Oil & Gas Australia Limited (Falcon Australia) |
22.5% |
Total |
100.0% |
Shenandoah South-1 DSU – 20,480
acres
Company |
Interest |
Tamboran (B2) Pty Limited |
77.5% |
Falcon Oil & Gas Australia Limited (Falcon Australia) |
22.5% |
Total |
100.0% |
Shenandoah South-2 DSU – 51,200
acres
Company |
Interest |
Tamboran (B2) Pty Limited |
95.0% |
Falcon Oil & Gas Australia Limited (Falcon Australia) |
5.0% |
Total |
100.0% |
Glossary
BCF |
Billion cubic
feet |
FID |
Final investment
decision |
MCF/D |
Thousand cubic
feet per day |
PJ |
PetaJoules |
TJ |
Terajoule |
About Tamboran B2 Pty
Limited
Tamboran (B1) Pty Limited is the 100% holder of
Tamboran B2 Pty Limited, with Tamboran B1 being a 50:50 joint
venture between a subsidiary of Tamboran Resources Limited and Daly
Waters Energy, LP.
Tamboran Resources Limited, is a natural gas
company listed on the ASX (TBN) and U.S. OTC markets (TBNNY).
Tamboran is focused on playing a constructive role in the global
energy transition towards a lower carbon future, by developing the
significant low CO2 gas resource within the Beetaloo
Basin through cutting-edge drilling and completion design
technology as well as management’s experience in successfully
commercialising unconventional shale in North America.
Bryan Sheffield of Daly Waters Energy, LP is a
highly successful investor and has made significant returns in the
US unconventional energy sector in the past. He was Founder of
Parsley Energy Inc. (“PE”), an independent
unconventional oil and gas producer in the Permian Basin, Texas and
previously served as its Chairman and CEO. PE was acquired for over
US$7 billion by Pioneer Natural Resources Company
(“Pioneer”), itself a leading independent oil and
gas company and with the PE acquisition became a Permian pure play
company. Pioneer has a current market capitalisation of c. US$53
billion.
Advisory regarding forward looking
statements
Certain information in this press release may constitute
forward-looking information. Any statements that are contained in
this news release that are not statements of historical fact may be
deemed to be forward-looking information. Forward-looking
information typically contains statements with words such as “may”,
“will”, “should”, “expect”, “intend”, “plan”, “anticipate”,
“believe”, “estimate”, “projects”, “dependent”, “consider”
“potential”, “scheduled”, “forecast”, “outlook”, “budget”, “hope”,
“suggest”, “support” “planned”, “approximately”, “potential” or the
negative of those terms or similar words suggesting future
outcomes. In particular, forward-looking information in this press
release includes, but is not limited to, information relating to
the signed Binding Agreement for a long-term GSA suppling the Buyer
with 14.6 PJ (13.8 BCF) per annum from the proposed Shenandoah
South Pilot Project for an initial term of nine years, with a
Buyer’s option to extend for a further six-and-a-half years, to gas
being delivered to the APA-owned AGP on a take-or-pay basis at a
market-competitive gas price, escalating at 100% of the CPI, the
Buyer’s extension option being at a slightly discounted price, the
Agreement being a binding supply commitment conditional on the BJV
entering into a binding Gas Transportation Agreement with the APA
on the proposed Sturt Plateau Pipeline, a binding Gas Processing
Agreement for the proposed Sturt Plateau Compression Facility,
reaching a FID on upstream drilling activity and receiving all
necessary approvals to proceed with these projects, targeting FID
on the proposed 40 TJ (38,000 MCF/D) per day upstream drilling
program in mid-2024, to securing funding, key regulatory and
stakeholder approvals and to the first gas flow planned for H1
2026.
This information is based on current expectations that are subject
to significant risks and uncertainties that are difficult to
predict. The risks, assumptions and other factors that could
influence actual results include risks associated with fluctuations
in market prices for shale gas; risks related to the exploration,
development and production of shale gas reserves; general economic,
market and business conditions; substantial capital requirements;
uncertainties inherent in estimating quantities of reserves and
resources; extent of, and cost of compliance with, government laws
and regulations and the effect of changes in such laws and
regulations; the need to obtain regulatory approvals before
development commences; environmental risks and hazards and the cost
of compliance with environmental regulations; aboriginal claims;
inherent risks and hazards with operations such as mechanical or
pipe failure, cratering and other dangerous conditions; potential
cost overruns, drilling wells is speculative, often involving
significant costs that may be more than estimated and may not
result in any discoveries; variations in foreign exchange rates;
competition for capital, equipment, new leases, pipeline capacity
and skilled personnel; the failure of the holder of licenses,
leases and permits to meet requirements of such; changes in royalty
regimes; failure to accurately estimate abandonment and reclamation
costs; inaccurate estimates and assumptions by management and their
joint venture partners; effectiveness of internal controls; the
potential lack of available drilling equipment; failure to obtain
or keep key personnel; title deficiencies; geo-political risks; and
risk of litigation.
Readers are cautioned that the foregoing list of
important factors is not exhaustive and that these factors and
risks are difficult to predict. Actual results might differ
materially from results suggested in any forward-looking
statements. Falcon assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward
looking-statements unless and until required by securities laws
applicable to Falcon. Additional information identifying risks and
uncertainties is contained in Falcon’s filings with the Canadian
securities regulators, which filings are available at
www.sedarplus.com, including under "Risk Factors" in the Annual
Information Form.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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