5 May 2017 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, ESM: FAC) is pleased to note Origin Energy Limited ("Origin") announced today it has acquired Sasol Petroleum Australia Limited's ("Sasol") 35% interest in in the Beetaloo Joint Venture*, bringing its interest to 70%. Sasol departs the Joint Venture to focus its capital investment on its African and North American footprint. This transaction is subject to the satisfaction of certain conditions, including Government approval.
The transaction will not impact Falcon's 2014 farmout agreement as Origin will now assume 100% of the future costs of the farmout.
Philip O'Quigley, CEO of Falcon, commented: "Having recently announced the discovery of a material shale gas resource in the Beetaloo Basin, Origin's doubling of its interest in the Beetaloo Joint Venture is a significant endorsement in what some regard as the Northern Territory's most prospective onshore basin for shale gas.
We look forward with Origin to progressing our understanding of the entire play while maturing the contingent resources to reserves over time, subject to the outcome of the Northern Territory's inquiry into hydraulic fracturing.
Falcon recognises Sasol's contribution to the Beetaloo Joint Venture and wishes them the very best for the future."