The Tamboran and Bryan Sheffield Joint Venture (JV) has signed a binding Letter of Intent (LOI) with Falcon Oil & Gas Australia Ltd to modify the terms of the Joint Operating Agreement (JOA) and Farm-in Agreement (FIA) with regards to the Origin Energy‘s Beetaloo Basin assets.
The LOI states that Falcon, which owns a 22.5 per cent non-operating interest in Origin’s Beetaloo assets, will not exercise its pre-emptive rights in relation to the JV’s purchase of Origin’s 77.5 per cent operated interest in exchange for a partial extension of the carry consideration under the FIA, which will be borne equally by Tamboran and Bryan Sheffield.
“Falcon Australia welcomes its new JV partners, Sheffield Holdings and Tamboran Resources. While our immediate focus is on the two Stage 3 Amungee wells, we are really excited about the future pace of development of the Beetaloo. The proposed amendments to the FIA and JOA puts Falcon in a very strong position going forward creating optionality for our shareholders in terms of the level of participation in any future appraisal and development drilling. Each future well drilled in the Beetaloo basin play further de-risks the play and, as a result of the proposed changes contemplated by the LOI, Falcon can tailor its participation to best preserve its capital while at the same time maximising its optionality,” Falcon CEO Philip O’Quigley said.
Tamboran will be the largest landholder in the Beetaloo, with about 1.9 million net prospective resources and 1.8 trillion cubic feet (TCF) of net 2C dependent gas resources, subject to the conclusion of the Origin transaction.
The sale of Origin’s Beetaloo properties is still subject to Northern Territory Government approval, which is expected by the end of October 2022.
“Subject to final Northern Territory Government approval of the Origin transaction, we look forward to working closely with our new Joint Venture partner, Falcon Oil & Gas, in accelerating the commercialisation of the significant, low CO2 natural gas within the Beetaloo Basin. The amendments to the JOA and FIA pave a way forward for all parties to benefit from collaboration as we work towards sanctioning of the proposed Amungee Pilot Development in EP 98,” Tamboran Managing Director and CEO Joel Riddle said.
 has signed a binding Letter of Intent (LOI) with Falcon Oil & Gas Australia Ltd to modify the terms of the Joint Operating Agreement (JOA) and Farm-in Agreement (FIA) with regards to the Origin Energy's Beetaloo Basin assets.){kind=link}