Falcon Oil & Gas Ltd. Falcon Oil & Gas Ltd.: Extension Of Orri Call Option

 
TIDMFOG 
 
 
 
 
   FALCON OIL & GAS LTD. 
 
   Extension of ORRI Call Option 
 
   23 April 2019 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, Euronext 
Growth: FAC) is pleased to announce that Falcon Oil & Gas Australia Ltd. 
("Falcon") 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 US$15 million. The TOG Group retains a 1% 
ORRI. The call option is due to expire on 22 August 2019. 
 
   The Extension highlights are as follows: 
 
 
   -- Allows Falcon to exercise its 30% share of the call option up to and 
      including 31 August 2021. 
 
   -- Falcon to pay US$500,000 to the TOG Group for granting the Extension 
 
   -- The cost of exercising Falcon's portion of the call option increases from 
      US$4.5m to US$7.5m. 
 
 
   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 programme under the 2014 Farmin 
Agreement with Origin.  In consideration of the delays to the work 
programme 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." 
 
   This announcement contains inside information. 
 
   For further information, please contact: 
 
   CONTACT DETAILS: 
 
 
 
 
Falcon Oil & Gas Ltd.                    [phone] 
Philip O'Quigley, CEO                   [phone] 
Anne Flynn, CFO                          [phone] 
 
Davy (NOMAD, Euronext Growth Advisor & Joint Broker') 
John Frain / Barry Murphy                [phone] 
 
RBC (Joint Broker) 
Matthew Coakes / Martin Copeland        [phone] 
 
Cenkos Securities plc (Joint Broker) 
Neil McDonald/Derrick Lee               [phone] 
 
   About Falcon Oil & Gas Ltd. 
 
   Falcon Oil & Gas Ltd is an international oil & gas company engaged in 
the acquisition, exploration and development of conventional and 
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. 
 
   For further information on Falcon Oil & Gas Ltd. please visit 
https://www.globenewswire.com/Tracker?data=pKfqmswyOFyzWohhr__mPeEbGt8PrxrsH5GJ8MTY62ALCU77-ETjUvClkHGmaetT2_NxeZQOU030f7KKsxyoHER5mXOHVuoJp0fVo7XBwiE= 
www.falconoilandgas.com 
 
   About Origin Energy 
 
   Origin Energy (ASX: ORG) is a leading Australian integrated energy 
company. Origin is a leading energy retailer with approximately 4.1 
million customer accounts, has approximately 6,000 MW of power 
generation capacity and is also a large natural gas supplier. Origin is 
the upstream operator of Australia Pacific LNG, which supplies natural 
gas to domestic markets and exports LNG under long term contracts. 
 
   www.originenergy.com.au 
 
   Glossary of Terms 
 
   ORRI                             Overriding Royalty Interest over 
Exploration Permits 76, 98 and 117 
 
   Participating Interest      Falcon Australia -- 30%, Origin -- 70% 
 
   TOG Group                    Malcolm John Gerrard, Territory Oil & Gas 
LLC and Tom Dugan Family Partnership LLC 
 
   US$                              United States Dollar 
 
   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. 
 
   Certain information in this press release may constitute forward-looking 
information. This information is based on current expectations that are 
subject to significant risks and uncertainties that 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.sedar.com. 
 
 
 
 
 
 

(END) Dow Jones Newswires

April 23, 2019 02:00 ET (06:00 GMT)

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