Falcon Oil & Gas Ltd. announces amendment to terms of PetroHunter transactions

About this update from Falcon Oil & Gas Ltd.

[{"type":"text","content":"\n\n\n\n(TSXV Symbol: FO)\n\n\nDENVER, Dec. 11 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) today announced\nthat it has entered into an amendment (the "Amendment") with PetroHunter\nEnergy Corporation ("PetroHunter") that amends the terms of the US$5 million\ntemporary bridge loan to PetroHunter by extending the maturity date from\nJanuary 30, 2009 to April 30, 2009 and changes the pledge portion of the\nsecurity associated with the bridge loan from a pledge of US$7.5 million worth\nof the convertible securities issued to PetroHunter in connection with the\nBeetaloo Basin transaction (the "Convertible Securities") to a pledge of\n14,500,000 of the Falcon shares to be issued upon conversion of the\nConvertible Securities. Falcon continues to retain its security for repayment\nof the bridge loan pursuant to a deed of trust covering PetroHunter's interest\nin five existing wellbores within PetroHunter's 20,000 acre Buckskin Mesa\nproject in the Piceance Basin, Colorado (the "Buckskin Mesa Project"). The\nAmendment also provides that in the event the bridge loan is not repaid by\nApril 30, 2009, Falcon, at its discretion, can require that PetroHunter's\nsubsidiary resign as operator of the 7 million acre Beetaloo Basin prospect in\nNorthern Territory, Australia.\n\n\nFalcon and PetroHunter have agreed to reallocate the US$7 million of\ncompletion capital that Falcon deposited into an escrow account for a testing\nand completion program on up to five wells within the Buckskin Mesa Project.\nUS$5.3 million will be used for the testing and completion program, which was\ncommenced in November, 2008, and the remaining US$1.7 million will be advanced\ndirectly to an unrelated third party creditor of PetroHunter who is due\npayment for obligations related to the Buckskin Mesa Project. Falcon believes\nthat the US$5.3 million will be sufficient to obtain all information necessary\nfor Falcon to make an informed decision on whether to exercise its option to\nacquire a 50% working interest (37.5% net revenue interest) in the entire\nBuckskin Mesa Project, including the five wells.\n\n\nAbout Falcon Oil & Gas Ltd.\n\n\nFalcon Oil & Gas Ltd. is a British Columbia corporation in the business\nof oil and gas exploration and production. It has operations in Hungary\nthrough its wholly owned subsidia...

More updates from Falcon Oil & Gas Ltd.