Falcon Oil & Gas Ltd. - Approval granted by Northern Territory Government for the Beneficial Use of Gas agreement

Core Viewpoint - Falcon Oil & Gas Ltd has secured approval from the Northern Territory Government for the Beneficial Use of Gas agreement, enabling the sale of appraisal gas from the Shenandoah South Pilot Project, marking a significant step in the company's operations in the Beetaloo sub-basin [2][6]. Company Developments - The approval allows the joint venture partners to sell appraisal gas of up to 60 terajoules (TJ) per day from the Pilot Project over a three-year period [6]. - An initial contract has been established to supply 40 million cubic feet per day (MMcf/d) of gas to the Northern Territory Government until mid-2041, aimed at enhancing energy security for the region [6]. - Construction of the A$140 million Sturt Plateau Compression Facility is set to commence, with Falcon having no cost exposure in this project [6]. - Gas sales to the Northern Territory Government via the Sturt Plateau Compression Facility are expected to begin in mid-2026, contingent on weather conditions and final stakeholder approvals [6]. Drilling Campaign - The 2025 drilling campaign is progressing with the successful drilling of the intermediate section of three new wells, and the horizontal section of the S2-5H well is currently being drilled [5][6]. - This campaign represents the first multi-well drilling program utilizing batch drilling in the Beetaloo Basin [6]. - Falcon has opted to reduce its participating interest in the three wells to 0%, thus incurring no cost exposure for their drilling [6]. - Stimulation of the S2-4H well, in which Falcon holds a 5% interest, is planned for the fourth quarter of 2025 [6]. Joint Venture Structure - Falcon Oil & Gas Australia Limited holds a 22.5% interest in the Beetaloo joint venture, while Tamboran (B2) Pty Limited holds a 77.5% interest [8]. - In the Shenandoah South Pilot Project, Falcon has a 5% interest, with Tamboran holding the remaining 95% [9]. Industry Context - The approval from the Northern Territory Government is the first granted under the new Beneficial Use of Gas legislation, indicating a regulatory shift that may facilitate further gas development in the region [6]. - The Beetaloo sub-basin is recognized for its significant low CO2 gas resources, which are being developed to support the global energy transition towards a lower carbon future [11].