AIM-listed Falcon Oil & Gas has executed a conditional agreement with Sweetpea Petroleum Pty, a wholly-owned subsidiary of PetroHunter Energy Corporation, to acquire its 50m shares (or 24.2 per cent interest) in Falcon Oil & Gas Australia(FOGA).
FOGA is a subsidiary of Falcon and is the registered holder of four exploration permits in the Beetaloo Basin in the Northern Territory of Australia.
Falcon currently owns 150m shares in FOGA representing 72.68% of the issued share capital of FOGA.
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Upon completion of the agreement, Falcon's shareholding in FOGA will increase to 200m shares, representing 96.90% of the issued share capital of FOGA.
The terms of the agreement include a cash consideration of $3.0m, together with the issue of 97.86m Falcon shares to Sweetpea.
Philip O'Quigley, Chief Executive Officer of Falcon, commented: "We are delighted with this opportunity to consolidate further our interest in our significant asset in the Beetaloo Basin, Northern Territory, Australia.
He added: "We remain absolutely confident and excited by the resource potential of the Beetaloo Basin and are hopeful that Hess will make a positive election to participate in the planned drilling campaign."
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