Falcon Oil & Gas Ltd - Binding Term Sheet for Gas Sales Agreement to supply pilot gas to the Northern Territory Government
Falcon Oil & Gas Ltd.
- Falcon Oil & Gas Ltd.
23 April 2024 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce that the Beetaloo Joint venture (BJV) has signed a Binding Agreement for a long-term Gas Sales Agreement (GSA) to supply the Northern Territory Government (Buyer) with 14.6 PJ (13.8 BCF) per annum from the proposed Shenandoah South Pilot Project for an initial term of nine years, with a Buyer’s option to extend for a further six-and-a-half years. - Details of the Binding Agreement are as follows:
Gas will be delivered to the APA-owned Amadeus Gas Pipeline (AGP) on a take-or-pay basis at a market-competitive gas price, escalating at 100% of the Consumer Price Index (CPI). - The Buyer’s extension option is at a slightly discounted price.
- Falcon Oil & Gas Australia Limited holds a 5% working interest in the 51,200-acre area that will include the wells required to deliver the proposed Pilot Project volumes.