Shares of Falcon Oil & Gas Ltd (LON: FOG) today surged 12.8% after the company highlighted an announcement by the Australian government saying that it will back exploration in the Beetaloo sub-basin with up to AUD$50 million of funding.
The company has early mover advantage in the Beetaloo basin due to its partnership with Origin Energy with permits covering up to 4.6 million acres of the most prospective core area of the sub-basin, according to current estimates.
The Australian government wants to fast-track projects in the sub-basin by providing grants to cover up to 25% of exploration costs for each well in the basin with a maximum funding limit of AUD$7.5 million per well.
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Philip O’Quigley, Falcon’s CEO, said: “The announcement by the Australian government highlights the strategic and economic importance of the Beetaloo sub-basin which it believes has the potential to be a world-class gas resource, transform the Northern Territory economy and generate 6,000 jobs by 2040,”
Adding:
“We look forward to continuing working with our partners, Origin, and the state and federal governments and other stakeholders towards the successful development of the sub-basin.”
The company, which owns 22.5% of the joint venture with Origin, used the announcement to highlight the possible scale of the Beetaloo sub-basin opportunity.
Falcon share price
Falcon Oil & Gas shares surged 12.8% to trade at 8.80p having rallied from Wednesday’s closing price of 7.80p.
