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Falcon Oil & Gas Ltd. Enters Into Production and Development Agreement With ExxonMobil on Falcon's Project in Hungary
DENVER, April 10 /CNW/ -- Falcon Oil & Gas Ltd. (TSXV: FO, "Falcon") announced today that it and ...
About this update from Falcon Oil & Gas Ltd.
[{"type":"text","content":"\n\n\n\nDENVER, April 10 /CNW/ -- Falcon Oil & Gas Ltd. (TSXV: FO, "Falcon")\nannounced today that it and its wholly owned subsidiary, TXM Exploration and\nProduction LLC, have entered into a Production and Development Agreement with\nExxon Mobil Corporation affiliate Esso Exploration International Limited\n(ExxonMobil) under which Falcon and ExxonMobil will become joint owners in a\nspecified portion (the "Contract Area") of Falcon's long-term production\nlicense (the "Production License") in the Mako Trough, Hungary. ExxonMobil\nwill operate the Contract Area.\n\n\n(Photo: http://www.newscom.com/cgi-bin/prnh/20080410/NYTH137 )\n\n\nThe Contract Area consists of approximately 184,300 acres, or 75% of\nFalcon's 246,000-acre Production License. The Contract Area will be owned\njointly, with Falcon owning a 33% undivided working interest and ExxonMobil\nowning a 67% undivided working interest. The Agreement is effective today.\n\n\nFalcon's Chairman and CEO, Marc A. Bruner, stated, "This agreement is a\nmilestone in Falcon's history and is the culmination of Falcon's extensive\nefforts, announced on June 27, 2007, to find a strategic partner to support\nand enhance Falcon's exploration and development efforts on Falcon's long-term\nProduction License. We are very pleased that we were able to reach agreement\nwith ExxonMobil, a company which brings to the table all the financial,\ntechnical and operating expertise necessary to pursue the completions, testing\nand evaluation of this resource, and then to maximize value if we are able to\ncommercialize this opportunity."\n\n\nThe Agreement provides for an initial consideration of US$25 million to\nFalcon and for ExxonMobil to spend US$50 million to conduct an Initial Work\nProgram to test one or more of Falcon's existing wellbores or drill one or\nmore new wells for such tests. Field operations under the Initial Work\nProgram are scheduled to commence this year. After the Initial Work Program\nis completed and if ExxonMobil elects to proceed to the next phase (the\n"Appraisal Work Program"), it will pay Falcon an additional US$50 million and\nwill expend US$100 million on the Appraisal Work Program. If ExxonMobil\nelects not to proceed beyond the Initial Work Program, it will relinquish and\nreassign to Falcon all of ExxonMobil's ...