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Falcon Oil & Gas Ltd. announces the closing of its previously announced acquisition of an additional 25% working interest in the Beetaloo Basin project
(TSXV Symbol: FO) DENVER, June 16 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or the "Comp...
About this update from Falcon Oil & Gas Ltd.
[{"type":"text","content":"\n\n\n\n(TSXV Symbol: FO)\n\n\nDENVER, June 16 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or the\n"Company") announces that, further to its press release dated May 27, 2009\nwherein the Company announced entering into a binding agreement with\nPetroHunter Energy Corporation ("PetroHunter") and the second purchase and\nsale agreement previously filed on SEDAR, pursuant to which Falcon announced\nits intention to acquire (the "Acquisition") an additional undivided 25%\nworking interest in PetroHunter's four exploration permits covering seven\nmillion acres in the Beetaloo Basin of the Northern Territory, Australia (the\n"Beetaloo Basin Project"), that all conditions to closing the Acquisition have\nbeen fulfilled. The Acquisition will bring Falcon's total working interest in\nthe Beetaloo Basin Project to 75%.\n\n\nUnder the terms of the Acquisition, the principal consideration being\npaid by the Company for this transaction is the exchange of the US$5,000,000\nnote receivable from PetroHunter. In addition, the Company has agreed to pay\ncertain vendors who had provided goods or services for the Beetaloo Basin\nProject, prior to the Company acquiring its 50% interest in September 2008, in\nexchange for inventory and operator bonds of approximately the same value. As\na condition of closing, the Company has become operator of the Beetaloo Basin\nProject, and PetroHunter and the Company have entered into an escrow agreement\nwhich governs the release of all remaining common shares in the Company\npreviously issued to PetroHunter. The Company has also reassigned to\nPetroHunter the undivided 25% working interest previously acquired in five\nwells, including the 40-acre tract surrounding each well (the "Five Wells") in\nPetroHunter's 20,000-acre Buckskin Mesa Project located in the Piceance Basin,\nColorado. The Company has been relieved of all obligations related to the Five\nWells, including reclamation and plugging and abandonment obligations, and has\nrelinquished its right to the unexpended testing and completion funds\npreviously advanced for the Buckskin Mesa Project.\n\n\nMarc A. Bruner, the Chairman, CEO and President of Falcon, beneficially\nholds 35.4% of the issued and outstanding shares of PetroHunter. The\nAcquisition was governed by a committee of t...