Falcon Oil & Gas Ltd. publicized that it was permitted to acquire 50 million shares of Sweetpea Petroleum Pty Ltd. This was equivalent to 24.22% interest in FOGA. The acquisition was granted after the approval of Falcon Oil & Gas Australia Limited's stockholders.
The completion of Falcon's latest purchase was expected to happen within the next 5 business days. However, it would still be subjected to TSX Venture Exchange's final approval.
FOGA was Falcon's affiliate. It was a registered holder of four permits of exploration in Beetaloo Basin, Northern Territory, Australia.
After the completion of the acquisition of shares, Falcon would own 200 million shares in FOGA. This would represent 96.90% of FOGA's issued share capital.
The terms of the deal involved a cash consideration worth US$3 million as well as the issue of 97.86 million Falcon stocks to Sweetpea.
Sweetpea was a subsidiary of PetroHunter Energy Corporation. It would own 10.7% of Falcon's issued share capital.
"We look forward to completing this successful consolidation of our interest in this high potential asset in the Beetaloo Basin, Northern Territory, Australia. The extensive seismic program carried out and funded by Hess over the past two years added to our confidence in the resource potential of this very prolific basin," CEO of Falcon, Philip O'Quigley, said.
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