Proactive Investors - Run By Investors For Investors

Falcon Oil & Gas’s prospects improving as Northern Territory prepares to make fracking decision

Falcon is sitting on a major shale discovery in the Beetaloo basin, but, it is waiting for the Northern Territory to green-light fracking - with a decision expected next year.
oil and gas operations
There could be as much as 496 trillion cubic feet of gas in the Beetaloo

Falcon Oil & Gas Ltd’s (LON:FOG, CVE:FO) chances of getting back to shale business in Australia’s Northern Territory appear to have improved considerably.

Risks remain, but, a draft final report in the North Territory has somewhat endorsed the use of the controversial oil and gas well treatment.

Falcon is sitting on a major shale discovery in the Beetaloo basin though its recent progress has been halted by a moratorium on fracking.

A government-commissioned report is being produced in order to inform the government ahead of a decision to either allow or deny the controversial well stimulation technique.

Challenges and risks of fracking are manageable

The detailed final draft contains many points and recommendations, and some devil may be in the details - for example, it calls for further "two-to-three year regional studies" into environmental issues which may impact project timelines – but, caveats aside, the report doesn’t oppose the fledgling industry.

There are two immediate standout comments in the final draft.

Firstly, the report’s "overall conclusion" states the belief that “the challenges and risks associated with any onshore shale gas industry in the NT are manageable”.

The report added: “It is the panel's opinion that, provided that the recommendations made in this report are adopted and implemented, not only should the risk of any harm be minimised to an acceptable level, in some instances, it can be avoided altogether."

Final report due next year

The final report will follow one further round of consultation, due to take place in January, and is expected to be published in March 2018.

In the meantime, investors may be heartened by the apparent positive conclusions of the scientific review although the decision on the moratorium might be a political rather than a scientific one.

Falcon shares were up around 9% in late afternoon trading on Tuesday, changing hands at 24.5p.

View full FOG profile View Profile

Falcon Oil & Gas Ltd Timeline

Related Articles

oil and gas operations
July 03 2018
Analyst Ashley Kelty highlighted what could be characterised as favourable environment and opportunity for Rose Petroleum
Unique design of the mid-body of the Optimum ship
October 02 2018
The company’s Optimum ship is being designed to optimise the transportation of compressed natural gas (CNG).
oil wells
November 22 2018
Highlands has been undertaking fracking operations at its East Denver acreage recently

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use