(Alliance News) - Falcon Oil & Gas on Monday said it has agreed to assign its working interest in three gross producing wells and one gross shut-in well in Alberta, Canada to a "large" unnamed Canadian-based company.
The oil and gas company focused on Hungary, Australia and South Africa said the wells have been loss-making and generated "minimal" revenue over the last few years.
Falcon said for the nine months to September 2020, the collective revenue for the wells was only USD3,000 and associated costs were USD6,000. During 2019, collective revenue was USD5,000 and costs were USD10,000.
As part of the assignment terms, Falcon said it has agreed to pay a total of CAD37,000, or USD29,275, to cover its net working interest share of the abandonment and reclamation obligations of the wells and associated infrastructure.
Shares in Falcon Oil & Gas were down 0.7% at 7.00 pence in London on Monday.
By Zoe Wickens; zoewickens@alliancenews.com
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Falcon Oil (FOG)