Business
Falcon Oil & Gas Ltd. announces it will not exercise Buckskin Option
(TSXV Symbol: FO) DENVER, CO, Feb. 24 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or the "...
About this update from Falcon Oil & Gas Ltd.
[{"type":"text","content":"\n\n\n\n(TSXV Symbol: FO)\n\n\nDENVER, CO, Feb. 24 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or\nthe "Company") today announces that it has elected not to exercise its option\nto acquire a 50% working interest in PetroHunter Energy Corporation's\n("PetroHunter") 20,000 acre Buckskin Mesa project ("Buckskin Mesa Project")\nlocated in the Piceance Basin, Colorado, under the Purchase and Sale Agreement\nentered in August 2008 between Falcon and PetroHunter previously filed on\nSEDAR.\n\n\nAs initially disclosed in its press release dated August 25, 2008, Falcon\nacquired a 25% interest in five wells in the 20,000 acre Buckskin Mesa Project\n(the "Five Wells") for consideration of US$7 million, and had an option (the\n"Option") to acquire an additional 50% working interest (37.5% net revenue\ninterest) in the entire Buckskin Mesa Project, including the Five Wells.\nFalcon will retain its 25% interest in the Five Wells.\n\n\nExercise of the Option would have required Falcon to pay additional\nconsideration of US$25 million in cash or securities convertible into Falcon\ncommon shares, or a combination thereof, and incur spending commitments of\nUS$18 million pursuant to a drilling and development program.\n\n\nFalcon and PetroHunter continue to develop the 2009 work program for the\njointly held 7 million acre prospect in Northern Territory, Australia (the\n"Beetaloo Basin"). The 28,888,888 common shares of Falcon issued to\nPetroHunter for Falcon's 50% interest in Beetaloo remain subject to the\ncontractual agreements between the companies as previously disclosed; whereby\n14,500,000 shares are pledged by PetroHunter to Falcon as collateral for\nFalcon's US$5.0 million loan to PetroHunter, 11,600,000 shares are available\nto PetroHunter to pledge as collateral for loans from third parties, leaving\n2,788,888 available for sale by PetroHunter.\n\n\nMarc A. Bruner, President, Chairman and CEO of Falcon stated that\n"results from the initial testing of the Five Wells did not warrant Falcon's\nexercising of the option under its existing terms and conditions given the\npresent economic climate."\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 prod...