Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) ("Falcon" or the "Company") announces that its subsidiary, Falcon Oil & Gas Australia Ltd ("FOGA"), has entered into an Agreement ("the Agreement)" with Malcolm John Gerrard, Territory Oil & Gas LLC and Tom Dugan Family Partnership LLC ("TOG Group") to acquire up to 7% (seven eighths) of the remaining 8% private Overriding Royalty Interest ("ORRI") over FOGA's Exploration Permits.
Philip O'Quigley, CEO of Falcon commented:
"We are delighted to have concluded a further significant reduction in the private Overriding Royalty Interest over our Australian assets.
This transaction, combined with the ORRI transaction announced on the 1st November 2013, will allow for the reduction of the privately held Overriding Royalty Interests from 12% to just 1% and will help to further progress our farm-out negotiations, which are at an advanced stage.
We have now completed two agreements to acquire 8% of the privately held Overriding Royalty Interests at a total cost of just $7m, of which $6m is payable only upon completion of a farm-out acceptable to Falcon. In addition, we have secured agreement to acquire a further 3% based on two five year call options granted to Falcon at a future combined cost of $20m leaving only a 1% Royalty in private hands."
