Shareholders in Falcon Oil and Gas’s Australian subsidiary firm have approved a £14million deal buying out Sweetpea’s minority interest the company.
Sweetpea Petroleum will take a 10.7% stake in Falcon through a new share issue, along with a payment of £2million, for the deal, which will give Falcon a 96% stake of its subsidiary firm.
Falcon Australia owns four exploration permits in the Beetaloo Basin of Australia’s Northern Territory, with the deal set to be completed within the next five days.
The new shares will be held in escrow for three years, with Sweetpea permitted to sell 15% of them each year during the lock-up period.
“We look forward to completing this successful consolidation of our interest in this high potential asset in the Beetaloo Basin,” said Falcon chief executive Philip O’Quigley.
“The extensive seismic program carried out and funded by Hess over the past two years added to our confidence in the resource potential of this very prolific basin.”