Falcon Oil & Gas Ltd., Denver, (TSX: FO) has reported that the Beetaloo Basin Evaluation and Participation Agreement between Falcon Oil & Gas Australia Limited and Hess Australia (Beetaloo) Pty Limited is now in effect and the seismic survey phase of the project will begin once the necessary regulatory permits are finalized.
On closing, Hess Australia made a US$17.5 million payment to Falcon Australia. Hess Oil and Gas Holdings Inc. also paid Falcon US$2.5 million and Falcon issued Hess a warrant exercisable for 10,000,000 common shares in the capital of Falcon at a price of CDN$0.19 per Common Share for a period from November 14, 2011 until January 13, 2015.
Upon receipt of all necessary regulatory permits, Hess Australia will commence the process of acquiring seismic data over Exploration Permits 76, 98 and 117 in the Beetaloo Basin, Northern Territory, Australia. After completion, processing and interpretation of the seismic data, Hess Australia may elect to acquire 62.5% ownership in the Agreement Area and continue to the next phase of the work program which includes conducting a five well program to explore and appraise the Agreement Area, beginning in 2012.
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