Australia: Hess takes Beetaloo farmout from Falcon

A Hess Corp. Australian affiliate will acquire an interest from Falcon Oil & Gas Australia Ltd. in three onshore exploration permits in the Beetaloo basin in Australia’s Northern Territory.

By OGJ editors
HOUSTON, May 3
– A Hess Corp. Australian affiliate will acquire an interest from Falcon Oil & Gas Australia Ltd. in three onshore exploration permits in the Beetaloo basin in Australia’s Northern Territory.

A letter of intent calls for Hess Australia (Beetaloo) Pty. Ltd. to earn a 62.5% working interest in EP 76, 98, and 117 covering 6,227,500 acres.

Hess Australia will make a payment to Falcon Australia, acquire warrants in parent Falcon Oil & Gas Ltd., shoot extensive seismic, and drill five wells. Hess has the right to withdraw following the seismic evaluation and again after the drilling phase, and the entire interest would revert to Falcon Australia (OGJ, June 27, 1994, p. 60).

In addition to its 37.5% working interest in the joint acreage, Falcon Australia will retain 100% ownership of EP 99 and 100,000 acres of EP 98.

A seismic survey is to start once necessary government and land users’ approvals are obtained. Falcon Australia will carry out its work planned for the Shenandoah-1 well, commencing with reopening and casing the existing wellbore planned for the third quarter 2011, followed by a comprehensive testing program.

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