Business
Falcon Oil & Gas Ltd. Enters Into Agreements to Acquire Assets in Piceance Basin, Colorado and Northern Territory, Australia
DENVER, Aug. 25 /CNW/ -- Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or the "Company") today annou...
About this update from Falcon Oil & Gas Ltd.
[{"type":"text","content":"\n\n\n\nDENVER, Aug. 25 /CNW/ -- Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or\nthe "Company") today announced that an independent committee of the Board of\nDirectors ("Independent Committee") has approved entering into binding\nagreements with PetroHunter Energy Corporation ("PetroHunter") under which\nFalcon will acquire a 25% working interest in five wells ("Five Wells")\nlocated within PetroHunter's 20,000 acre Buckskin Mesa project ("Buckskin Mesa\nProject") located in the Piceance Basin, Colorado and undertake a completion\nand testing program in respect of these Five Wells. If testing is successful,\nFalcon will have an option to acquire a 50% working interest in the Buckskin\nMesa Project. Falcon has also entered into agreements to acquire a 50% working\ninterest in PetroHunter's 7 million acre prospect in Northern Territory,\nAustralia (the "Beetaloo Basin").\n\n\nMarc A. Bruner, the Chairman, CEO and President of Falcon is a\nsignificant shareholder of PetroHunter. As a result, the Board of Directors of\nFalcon formed an Independent Committee, consisting of the 6 independent\ndirectors of Falcon, to evaluate and approve the transactions.\n\n\n"The evolution of our business strategy is to build our portfolio and\npursue assets that will enable us to leverage our unconventional resource\nexpertise," stated Falcon's Chief Operating Officer, Rod Wallis. "The Buckskin\nMesa Project provides Falcon with the potential for near-term gas production\nin one of the most productive unconventional gas deposits in the continental\nU.S. The transaction structure ensures that the commitment to develop the\nfield is only made when there is a high degree of certainty that gas can be\nextracted on an economically attractive basis. The Beetaloo Basin has numerous\nconventional structures and a vast resource play that we believe could rival\nthe Mako Trough in Hungary."\n\n\nMr. Wallis continued, "We conducted an extensive review of the assets and\nbelieve there is considerable upside potential in these two world-class\nassets. Expanding our asset base and geographic portfolio into other\neconomically and politically stable countries provides an opportunity to\ntransform Falcon into a leading global player in unconventional exploration\nand ...