(Alliance News) - Falcon Oil & Gas Ltd shares fell on Monday, as the company said it will reduce its working interest in the proposed Shenandoah South pilot project.
The Australia, Hungary and South Africa-focused oil and gas company said its stake in Shenandoah South will decline to 5% from 22.5%, to reduce participation costs and "optimise" its interest in the Beetaloo sub-basin in Australia's Northern Territory.
Falcon Oil shares fell 13% to 7.53 pence each on Monday morning in London.
Chief Executive Philip O'Quigley said: "Falcon's election to reduce its participating interest to 5% in the pilot is a prudent use of our capital resources as it significantly reduces our cost exposure.
"Post a successful pilot, Falcon will own a weighted average interest of 10% in the enlarged area of around 72,000 acres around the pilot and will be able to participate in any future development of this area, whilst still retaining 22.5% interest in the remaining 4.52 million acres. This election by Falcon demonstrates our ability to optimise our interest in the Beetaloo for the benefit of shareholders."
By Tom Budszus, Alliance News slot editor
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Falcon Oil (FOG)