Falcon Oil & Gas Secures Approval for Gas Sales Agreement
Falcon Oil & Gas Receives Gas Sales Approval
Falcon Oil & Gas Ltd (TSXV: FO) is delighted to report significant progress with the approval granted for the Beneficial Use of Gas agreement. This approval allows Falcon Oil & Gas Australia Limited’s joint venture partner, Tamboran (B2) Pty Limited, to commence the sale of appraisal gas from the esteemed Shenandoah South Pilot Project.
Understanding the Approval
This ground-breaking approval is the first of its kind under the new Beneficial Use of Gas (BUG) legislation. With this authorization, the joint venture partners can effectively sell appraisal gas from exploration permit EP98 located in the Beetaloo sub-basin, a region rich in natural gas resources.
Details of the Agreement
The newly established agreement allows the partners to provide up to 60 terajoules of gas daily for a duration of three years. This sales initiative is expected to greatly contribute to regional energy security.
Construction and Development Plans
The joint venture also marks an initial supply agreement for 40 million cubic feet of gas per day, set to commence until 2041. This supply will play a vital role in boosting the Northern Territory's energy needs. Future construction plans include a remarkable A$140 million for the Sturt Plateau Compression Facility, with no financial exposure for Falcon in its construction.
Progress on the 2025 Drilling Campaign
The 2025 drilling initiative continues to gain momentum, with all three wells—S2-1H, S2-3H, and S2-5H—successfully drilling through the intermediate sections. Currently, the horizontal section of the S2-5H well is being drilled, showcasing advances in drilling technology within the Beetaloo Basin.
Investment in Local Infrastructure
Moreover, this month signifies the commencement of work on the Northern Territory's inaugural Beetaloo pipeline, a project that APA Group is investing A$70 million in. This essential step forward signifies a collaborative effort to enhance local infrastructure for energy distribution.
Expert Insights from Falcon Oil & Gas
Philip O'Quigley, CEO of Falcon Oil & Gas, expressed enthusiasm about the ongoing developments, stating, "It is great to see this increased activity in the Beetaloo with not only batch drilling but also the construction of the Sturt Plateau Pipeline and the Sturt Plateau Compression Facility, undertaken by our partners at Tamboran (B2) Pty Limited."
About Falcon Oil & Gas Ltd
Falcon Oil & Gas Ltd is a prominent international oil and gas company focused on the development of unconventional resources, currently prioritizing its assets in Australia. Headquartered in Dublin, Ireland, and incorporated in British Columbia, Falcon is committed to innovation and sustainability in its operations.
Key Contact Information
Falcon Oil & Gas Ltd
+353 1 676 8702
Philip O'Quigley, CEO
+353 87 814 7042
Anne Flynn, CFO
+353 1 676 9162
Frequently Asked Questions
What is the Beneficial Use of Gas agreement?
The Beneficial Use of Gas agreement allows Falcon's joint venture partners to sell appraisal gas, significantly contributing to energy security.
How much gas can be sold under this agreement?
Up to 60 terajoules of gas can be sold daily for three years under this agreement.
What projects are underway in the Beetaloo Basin?
The 2025 drilling campaign and the construction of the Sturt Plateau Compression Facility and pipeline are major initiatives.
Who are Falcon's partners in this venture?
The joint venture partners include Tamboran (B2) Pty Limited and Falcon Oil & Gas Australia Limited.
How does this approval impact local energy security?
The approval enables reliable gas supply, which is essential for the Northern Territory's energy needs through regular production.
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