Australia shale boost
April 23 (LNGJ) - Falcon Oil and Gas Ltd, a company listed on the Alternative Investment Market of the London Stock Exchange, said its Beetaloo shale basin joint venture in Australia with Tamboran Resources has signed a binding long-term gas sales agreement (GSA) to supply the Northern Territory Government. The deal is for 13.8 billion cubic feet 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.
Falcon said that the gas would be delivered to the Amadeus Gas Pipeline on a take-or-pay basis at a market-competitive gas price, escalating at 100 percent of the Consumer Price Index. “This is a significant development for the Beetaloo joint venture, and puts the venture on a path where revenue from gas sales will support funding of our future development phases, including supply to the East Coast gas and LNG markets,” said Philip O’Quigley, Chief Executive of Falcon.
