Falcon Oil and Gas Australia Ltd. waived its pre-emptive rights over acquisition of Origin Energy Ltd.’s interest in Beetaloo basin onshore Northern Territory by Tamboran Resources Ltd. and Sheffield Holdings (OGJ Online, Sept. 19, 2022).
Falcon and Tamboran-Sheffield (Tamboran) have now entered a binding Letter of Agreement to amend the original joint operating agreement and existing farm-in agreement between Falcon and Origin.
The letter provides for Falcon to retain its 22.5% non-operating interest in Beetaloo assets and earn an additional carry on future well costs of up to $30 million (Aus.) ($6.75 million net to Falcon).
Well data on any sole-risked wells will be shared so that Falcon can receive analysis of data even where it decides not to participate.
Tamboran will acquire Origin’s 77.5% interest in the Beetaloo acreage and its operatorship, subject to Northern Territory government approval.
The deal would make Tamboran the largest Beetaloo acreage holder with about 1.8 tcf of net 2C contingent gas resources.
Once closed, Tamboran plans to accelerate work to commercialize Beetaloo gas resources, beginning with sanction of the proposed Amungee pilot development in permit EP98.
Drilling of the first of the Stage 3 wells is expected shortly with Falcon benefitting from the remainder of the carry under the previous farm-in agreement and joint operating agreement.