Oil and Gas News

Positive outlook for Beetaloo project

beetaloo basin

Falcon Oil & Gas is set to receive $US10 million ($13.3 million)  in private placement from Sheffield Holdings. Once the placing is approved by the TSX Venture Exchange, Sheffield will represent 8.66 per cent of Falcon’s issued and outstanding common shares.

Falcon CEO Phillip O’Quigley said the company is very pleased that Bryan Sheffield of Sheffield Holdings has increased his strategic stake in the company.

“Bryan is a highly successful investor and has made significant returns in the US unconventional energy sector in the past,” he said.

In return for a further cash payment of $US6 million, Falcon will also be granting Sheffield a two per cent overriding royalty interest (ORRI) in the Beetaloo Sub-Basin exploration permits.

This will put Falcon in a strong financial position when making decisions about the Beetaloo project, of which the company holds 22.5 per cent interest.

Located 600 kilometres south of Darwin, the Beetaloo Sub-Basin expands across 4.6 million gross acres. Current data indicates that is an active onshore petroleum system with significant potential for unconventional hydrocarbon, including shale gas, shale oil and tight gas.

“The Beetaloo sub-basin is still in the exploration and appraisal phase, but with continued good well results, Falcon is well positioned to become a key supplier of low carbon energy to Australia and to the world within a few short years,” Bryan Sheffield of Sheffield Holdings said.

“I am delighted to have this opportunity to acquire a significant interest in Falcon and gain exposure to their net one million acres in what may become one of the biggest shale plays in the world.”