Falcon Oil & Gas Share Discussion Threads

[loganair] 05/10/2022 09:29

Investor takeaways:

The transaction between Origin and Tamboran-Sheffield has changed the competitive landscape in the Beetaloo Basin. The deal does not diminish my bullishness on this emerging shale gas play. Origin exits to pursue shorter-cycle projects, not out of a disappointment at the subsurface geology, and apparently not in a fire sale. From now on, Beetaloo will not be competing for capital and manpower with other projects on Origin's portfolio since it will be the sole focus of Tamboran. As a result, project execution will likely be accelerated.

Tamboran is going all out with Beetaloo, hoping the shale play to be its company maker. In contrast, Falcon is being carried in the foreseeable future, thus exposing shareholders to lower risk.


I have a long-term hold position in Falcon, which I plan to continue to hold. Should the market offer Falcon shares at a bargain price, I may even add to it.

[loganair] 05/10/2022 09:21

The important parts of the article:

After the completion of the acquisition, Tamboran will hold a 38.75% operated interest, Bryan Sheffield - ex-CEO of Parsley Energy, now part of Pioneer Natural Resources - will have a 38.75% non-operating interest, and Falcon Oil & Gas will retain a 22.5% non-operating interest in the three permits.

Sheffield holds 8.66% of Falcon and will own 15.2% of Tamboran.



Sheffield has patiently built up a significant position in the Beetaloo play. The important question is whether he will exert his power as a major shareholder to intentionally depress the share price of either Falcon or Tamboran in an effort to accumulate more shares. I believe the primary focus of Sheffield at this time is likely to be uniting various parties and attracting more participants in the Beetaloo play, rather than squeezing out existing partners.

I believe Tamboran (the operator), Falcon (non-operating partner), Origin (royalty holder through Tamboran) and Sheffield (equity investor in both Tamboran and Falcon and royalty holder via Falcon) can have a constructive relationship. Multi-party joint ventures are a common practice in the oil industry since its infancy.

[hermana3] 05/10/2022 07:35

"A constructive relationship between Sheffield/Tamboran and Falcon" we will soon find out on that one...

[hermana3] 03/10/2022 07:54

Agree it would be a bridge too far for Falcon.

[loganair] 02/10/2022 19:33

With all that Tamboran have in place for the Beetaloo, I wouldn't wish for Falcon Oil to make a counter offer for Origins 77.5% stake in the project.

[loganair] 02/10/2022 18:27

Equity alliance with Helmerich and Payne:

To fund its activities, Tamboran has entered into a strategic alliance and secured US$15 million ($22 million) equity investment from a subsidiary of Helmerich and Payne, Inc., the largest drilling solutions provider in the US.

The investment forms part of Tamboran’s $138 million equity placement.

Proceeds will be channelled into development of the Beetaloo Basin. The strategic alliance with H&P, which has significant expertise in deep unconventional shale drilling, is also expected to help Tamboran accelerate development drilling in the region at a reduced cost.

Tamboran has also finalised a drilling contract with H&P for a super-spec FlexRig® for a two-year term.

The rig will mobilise into Australia for the company’s 2023 proposed drilling campaign. The drilling activity, if successful, is expected to position Tamboran for the sanctioning of the proposed Amungee Pilot Development by the end of 2023.

Once imported into Australia, H&P’s super-spec FlexRig®, with more than 2,000 horsepower and one-million-pound hookload, will be one of Australia’s most powerful onshore drilling rigs.

Capable of drilling more than 4,000-metre horizontal sections within the Mid-Velkerri 'B Shale', the rig is expected to support a material reduction in cost per unit of recoverable gas and minimise the environmental footprint.

“We are extremely excited to work with H&P to bring one of the largest US onshore drilling and service providers into the Beetaloo Basin,” Riddle said.

“The strategic alliance with H&P, alongside their $22 million equity investment in Tamboran, aims to bring unrivalled US unconventional expertise and knowledge into the development of our significant low-CO2 natural gas resource and materially reduce costs.

“The equity investment reflects H&P’s confidence in the quality and focus of Tamboran’s assets and operational team.

[loganair] 02/10/2022 18:21

Origin announced a post-tax loss of $90 million on the deal...so why did Origin sell their stake at such a huge loss?

[loganair] 02/10/2022 15:12

It seems to me reasonable to say the whole thing is now up to Sheffield as they have a foot in both camps.

[hermana3] 02/10/2022 13:29

If attempts are made to fundraise better terms for a merger could be undertaken. Tamboran will consider Falcon to be a powerless minnow but hope they are proven wrong on that count...

[loganair] 02/10/2022 13:22

I would prefer a merger rather than Falcon Oil taking on shed loads of debt to buy the whole thing, especially as interest rates are rising.

[hermana3] 02/10/2022 13:19

They havent long to raise money so wee Joe will need to hit the ground running. He has done such rapid fundraising before so will be interesting to see what transpires...

[loganair] 02/10/2022 13:18

Maybe Sheffield will push for Tamboran and Falcon Oil to merge, this would save millions in having the need to have two lots of management, two HQs etc and also would simplify the whole situation - this would now be my preference.

Posters on the LSE sight are saying the same and I agree with their reasoning behind what they are saying.

[hermana3] 02/10/2022 12:06

Sheffield is The Rainmaker now. Can O'Quigley and Nally do a deal that suits us holders or will they line their pockets? Enquiring minds need to know....

[loganair] 01/10/2022 14:09

Sheffield now have stakes in both Tamboran and Falcon Oil.


Looking back, in April Sheffield Holdings bought an 8.66% stake in Falcon via a Private Placing at CAD$0.20 (12.9p) per share which raised USD$10mln.

Falcon also agreed to grant Sheffield a 2% overriding royalty interest ("ORRI") over Falcon Australia's 22.5% working interest in the Beetaloo Sub-Basin exploration permits in return for a cash payment of US$6 million.

[hermana3] 01/10/2022 12:08

Mirabeau, Many thanks. The Sheffield timescale and intentions are not obvious so we will just have to wait and see.

[hermana3] 27/9/2022 17:48

Hard to see Falcon breaking up this deal.

[ohisay] 27/9/2022 11:29

Good summary..

[hermana3] 26/9/2022 18:40

Agree even the legend J.Nally will struggle to engineer a reverse takeover. He has pulled off some serious feats in fundraising in last 15 years so best not to write him off just yet....

[childboy] 26/9/2022 16:08

I'd not be backing POQ to raise money.
I know J. Nally and know hiss history as a fund raiser. If he can pull this off without destroying equity holders (more than we have been over the last 8 years) then I'd build the stature myself! With the valuation at what Origin have sold at I struggle to see it happening unfortunately. I'm a long term holder so I'll be hoping for the best

[hermana3] 23/9/2022 21:11

Philip is not a useless negogiator but agree he is an unproven fundraiser. Joseph P.Nally is a legendary fundraiser on AIM. They are considering erecting a statue of him in The City...

[childboy] 23/9/2022 10:13

Philip is a useless negotiator, always has been and never been great at raising money. its a fire sale from Origin and would back POQ to get a deal done that doesn't decimate shareholder value? in 30 days? not a bet I'd be making

[hermana3] 22/9/2022 20:31

If I do you will be the first to know...

[p5tvr] 22/9/2022 19:28

I take that as a NO then....Didn't think so... :0)