Falcon is a global energy company with projects in Hungary, Australia & South Africa

Developing large acreage positions of unconventional and conventional oil and gas resources

Free
Message: News release

News release

posted on Feb 24, 2009 03:48AM



Falcon Oil backs out of Buckskin Mesa option



2009-02-24 07:51 ET - News Release

Mr. Marc Bruner reports

FALCON OIL & GAS LTD. ANNOUNCES IT WILL NOT EXERCISE BUCKSKIN OPTION

Falcon Oil & Gas Ltd. has elected not to exercise its option to acquire a 50-per-cent working interest in PetroHunter Energy Corp.'s 20,000-acre Buckskin Mesa project located in the Piceance basin, Colorado, under the purchase and sale agreement entered in August, 2008, between Falcon and PetroHunter, previously filed on SEDAR (see Stockwatch SEDAR files).

As initially disclosed in its press release (see news issued in Stockwatch) dated Aug. 25, 2008, Falcon acquired a 25-per-cent interest in five wells in the 20,000-acre Buckskin Mesa project for consideration of $7-million (U.S.), and had an option to acquire an additional 50-per-cent working interest (37.5-per-cent net revenue interest) in the entire Buckskin Mesa project, including the five wells. Falcon will retain its 25-per-cent interest in the five wells.

Exercise of the option would have required Falcon to pay additional consideration of $25-million (U.S.) in cash or securities convertible into Falcon common shares, or a combination thereof, and incur spending commitments of $18-million (U.S.) pursuant to a drilling and development program.

Falcon and PetroHunter continue to develop the 2009 work program for the jointly held seven-million-acre prospect in Northern Territory, Australia (the Beetaloo basin). The 28,888,888 common shares of Falcon issued to PetroHunter for Falcon's 50-per-cent interest in Beetaloo remain subject to the contractual agreements between the companies as previously disclosed; whereby 14.5 million shares are pledged by PetroHunter to Falcon as collateral for Falcon's $5.0-million (U.S.) loan to PetroHunter, 11.6 million shares are available to PetroHunter to pledge as collateral for loans from third parties, leaving 2,788,888 available for sale by PetroHunter.

Marc A. Bruner, president, chairman and chief executive officer of Falcon, stated that, "Results from the initial testing of the five wells did not warrant Falcon's exercising of the option under its existing terms and conditions given the present economic climate."

3
Feb 24, 2009 05:50AM

Feb 24, 2009 06:04AM
2
Feb 24, 2009 06:23AM
5
Feb 24, 2009 06:30AM
4
Feb 24, 2009 06:45AM
9
Feb 24, 2009 07:03AM
2
Feb 24, 2009 07:28AM
2
Feb 24, 2009 07:33AM
3
Feb 24, 2009 07:44AM
4
Feb 24, 2009 04:32PM

Feb 24, 2009 06:50PM

Feb 24, 2009 09:27PM

Feb 25, 2009 07:34AM
1
Feb 25, 2009 07:53AM
Share
New Message
Please login to post a reply