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SYDNEY - Falcon Oil & Gas Ltd. (TSXV:FO, AIM: FOG) announced Tuesday that the Northern Territory Government has approved the Beneficial Use of Gas agreement for its joint venture in the Beetaloo Basin, allowing for the sale of appraisal gas from the Shenandoah South Pilot Project.
This marks the first approval granted under the Northern Territory’s new Beneficial Use of Gas legislation, permitting the joint venture partners to sell up to 60 terajoules of gas per day over a three-year period.
The joint venture, in which Falcon Australia holds a 22.5% interest and Tamboran (B2) Pty Limited holds 77.5%, has contracted to supply 40 million cubic feet per day to the Northern Territory Government until mid-2041.
The approval paves the way for construction of the A$140 million Sturt Plateau Compression Facility, with gas sales expected to commence in mid-2026, subject to weather conditions and final stakeholder approvals. Falcon noted it has no cost exposure in the construction of the facility.
Work is set to begin this month on the 37-kilometer Sturt Plateau Pipeline, with APA Group investing A$70 million in what will be the Northern Territory’s first pipeline from the Beetaloo Basin.
The company also reported progress on its 2025 drilling campaign, with the intermediate section of three wells successfully drilled. The horizontal section of the S2-5H well in the Amungee B Shale is currently being drilled. Falcon Australia has opted to reduce its participating interest in these three wells to 0%, eliminating its cost exposure.
According to the press release, stimulation of the S2-4H well, in which Falcon maintains a 5% interest, is planned for the fourth quarter of 2025.
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