In the event that Hess elects to drill the five exploration wells, Falcon will be fully carried for its 37.5% of the five well exploration program.
Falcon Oil & Gas Ltd. (TSX: V.FO, Stock Forum) said that the Northern Territory Department of Mines and Energy has granted a 12-month extension to Falcon for each of the Permits EP76, EP98 and EP117 which include the majority of the seven million acres in Australia
The permits, located in the Beetaloo Basin, are held 100% by Falcon Oil & Gas Australia Ltd., a 73% owned subsidiary of Falcon.
Separately, the DME has also granted a 12-month extension to Falcon for adjacent EP99 which is the Permit held 100% by Falcon and which is excluded from the Farm-Out arrangement with Hess Australia Pty Ltd.
According to the press release, significance of the Extensions of EP's 76, 98 and 117 allow Hess adequate time to complete the shooting and processing of 3,600 kilometres of 2D seismic.
Furthermore, a date of no later than 30th June 2013 has now been agreed with Hess, whereby Hess must exercise its option to elect to drill, or not as the case may be, five exploration wells to earn 62.5% in EPs 76, 98 and 117.
As for the extension of EP99, the company can now move forward with its plans to shoot 150 kilometres of 2D seismic in 2013. Discussions with third parties on the farm-out of EP99 and the Shenandoah well area are continuing.
Falcon, headquartered in Dublin, Ireland, is an international oil and gas exploration and production company.
On Friday, Falcon’s stock was up 10.3% and was trading at $0.215 a share. The company has a market cap of $149.6 million, based on 695.7 million shares outstanding. The 52-week high and low was $0.24 and $0.08 respectively.