- Falcon Oil & Gas (FO) has announced a US$10 million private placement and a US$6 million overriding royalty interest grant
- Falcon will issue 62,500,000 common shares to Sheffield Holdings LP
- Falcon Oil & Gas Australia will also receive a $6M cash payment for a 2 per cent overriding royalty interest over Falcon’s working interest in the Beetaloo Sub-Basin exploration permits
- Falcon Oil & Gas Ltd is an international oil & gas company engaged in the exploration and development of unconventional oil and gas assets
- Falcon Oil & Gas Ltd. (FO) opened trading at C$0.17 per share
Falcon Oil & Gas (FO) has announced a US$10 million private placement and a US$6 million overriding royalty interest grant.
Falcon will issue 62,500,000 common shares to Sheffield Holdings LP at a price of C$0.20 per share.
Falcon Oil & Gas Australia Limited has also agreed to grant Sheffield a 2 per cent overriding royalty interest (ORRI) over Falcon Australia’s 22.5 per cent working interest in the Beetaloo Sub-Basin exploration permits in return for a cash payment of US$6 million.
The cash proceeds of US$6 million will be used to exercise Falcon Australia’s call option to reduce the existing ORRI with the TOG group.
The private placement will add US$10 million to Falcon’s leaving the company in a strong financial position well ahead of future decisions on the Beetaloo project.
Philip O’Quigley, CEO of Falcon commented on the capital raise.
“Falcon is very pleased that Bryan Sheffield of Sheffield Holdings LP has increased his strategic stake in the company at this time. Bryan is a highly successful investor and has made significant returns in the US unconventional energy sector in the past. He was the founder of Parsley Energy Inc., an independent unconventional oil and gas producer in the Permian Basin, Texas and previously served as its Chairman and CEO.
PE was acquired for over US$7 billion by Pioneer Natural Resources Company, itself a leading independent oil and gas company and with the PE acquisition became a Permian pure-play company. Pioneer has a current market capitalization of c. US$60 billion.”
Falcon Oil & Gas Ltd is an international oil & gas company engaged in the exploration and development of unconventional oil and gas assets. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland.
Falcon Oil & Gas Ltd. (FO) opened trading at C$0.17 per share.
