Irish oil firm Falcon are closing in on a farm-out of their Beetaloo Basin project after striking a deal to reduce their interest payments on the site.
The firm has struck a deal to acquire all but 1% of its remaining overriding royalty interests on the exploration permits for the basin.
The $20million deal, which is dependent on achieving a farm-out deal for the project.
It follows a similar deal with CR Innovations over reducing royalties on the seven million acre site earlier this year.
The Beetaloo Basin site is though to contain up to 21million barrels of oil and 162trillion cubic feet of gas.
“This transaction, combined with the ORRI transaction announced on the 1st November 2013, will allow for the reduction of the privately held Overriding Royalty Interests from 12% to just 1% and will help to further progress our farm-out negotiations, which are at an advanced stage,” said Falcon chief executive Philip O’Quigley.
“We have now completed two agreements to acquire 8% of the privately held Overriding Royalty Interests at a total cost of just $7m, of which $6m is payable only upon completion of a farm-out acceptable to Falcon.”
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