Falcon Oil & Gas Ltd Secures Major Gas Sales Approval
Exciting Developments at Falcon Oil & Gas Ltd
Falcon Oil & Gas Ltd (“Falcon”)
Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) has received important approval from the Northern Territory Government for the Beneficial Use of Gas agreement. This significant milestone enables Falcon and its joint venture partner, Tamboran (B2) Pty Limited, to sell appraisal gas from the Shenandoah South Pilot Project.
Key Highlights of the Approval
The approval obtained allows the sale of appraisal gas from EP98 in the Beetaloo sub-basin. This is the inaugural approval granted under the new Beneficial Use of Gas legislation by the Northern Territory Government.
Details of the Agreement
Falcon and its partners have signed an agreement that permits the sale of up to 60 TJ of gas per day from the project over the next three years, following the terms laid out in the Agreement.
Commitments for Future Development
The joint venture partners have agreed to deliver an initial supply of 40 million cubic feet of gas per day to the Northern Territory Government until mid-2041, ensuring energy security for the region. This initiative also sets the groundwork for the construction of the A$140 million Sturt Plateau Compression Facility (SPCF), which Falcon will not bear any construction costs.
Anticipated Timeline for Gas Sales
Gas sales using the SPCF are projected to commence in mid-2026, dependent upon weather conditions and final regulatory approvals.
Pipeline Development
This month marks the initiation of work on the Northern Territory's first Beetaloo pipeline. APA Group is investing A$70 million to construct the 37-kilometer Sturt Plateau Pipeline. This development promises to advance gas distribution in the area.
2025 Drilling Campaign Insights
The company is also making strides with its 2025 drilling campaign, in which the intermediate sections of three wells have been successfully completed. Currently, drilling is underway on the horizontal section of the S2-5H well in the Amungee B Shale. This campaign is notable as it's the first multi-well drilling program to employ batch drilling in the Beetaloo Basin.
Financial Considerations
Falcon Australia opted for a 0% participating interest in the drilling of these wells, assuming no cost exposure for the operations. However, they maintain a 5% interest in the stimulation of the S2-4H well, which is set for Q4 2025.
CEO Philip O’Quigley Comments on Progress
CEO Philip O’Quigley expressed enthusiasm regarding the increased activity within the Beetaloo region, emphasizing the progress in both drilling and pipeline construction. He stated that it is a remarkable period for the company and its strategic partners.
Contact Information
Falcon Oil & Gas Ltd
Phone: +353 1 676 8702
CEO: Philip O’Quigley, Phone: +353 87 814 7042
CFO: Anne Flynn, Phone: +353 1 676 9162
About Falcon Oil & Gas Ltd
Falcon Oil & Gas Ltd is a globally recognized oil and gas firm dedicated to the exploration and development of unconventional oil and gas assets, with its current efforts concentrated in Australia. Headquartered in Dublin, Ireland, the company operates as a subsidiary of Falcon Oil & Gas Ltd, which is based in British Columbia, Canada.
Collaborative Partners in Beetaloo JV
In its joint venture for EP 76, 98, and 117, Falcon collaborates with Tamboran (B2) Pty Limited, where it holds a 22.5% interest with Tamboran owning the remainder.
Frequently Asked Questions
What recent approval did Falcon Oil & Gas Ltd receive?
Falcon received approval from the Northern Territory Government for the Beneficial Use of Gas agreement, allowing gas sales from the Shenandoah South Pilot Project.
How much gas can Falcon sell under the new agreement?
The agreement permits the sale of up to 60 TJ of appraisal gas per day over a three-year period.
What is the significance of the Sturt Plateau Compression Facility?
The A$140 million facility will facilitate gas sales and distribution without cost exposure to Falcon.
When are gas sales expected to begin?
Gas sales are expected to commence in mid-2026, pending necessary approvals.
Who are Falcon's joint venture partners in the Beetaloo sub-basin?
Falcon's joint venture partner is Tamboran (B2) Pty Limited, which holds a majority interest in the ventures.
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