The explorer’s shares fell 7% today after it was revealed that Hess Corp’s proposed five well drill programme would not go ahead.
In a dramatic twist to events the American giant asked for an extension to the June 28 deadline in order to conclude a farm-out with a third party described as “one of the largest oil and gas companies in the world”.
This request was rejected by Falcon, which means Hess forfeits its right to earn 62.5% in three Beetaloo permits, having invested an estimated US$80mln exploring the area.
Falcon gets to keep 100% of four permits in the basin in Australia’s Northern Territory, which the AIM and TSX-listed explorer says leaves it in a “stronger position going forward”.
CTP Price at posting:
39.5¢ Sentiment: LT Buy Disclosure: Held
