Falcon Oil & Gas said that it has signed a conditional agreement with Sweetpea Petroleum, a wholly-owned subsidiary of PetroHunter Energy (Sweetpea) to acquire its 50 million shares or 24.22% interest in Falcon Oil & Gas Australia (FOGA).

FOGA is a subsidiary of Falcon and is the registered holder of four exploration permits in the Beetaloo Basin, Northern Territory, Australia.

Falcon currently holds 150 million shares in FOGA, representing 72.68% of the issued share capital of FOGA.

Upon completion of the agreement, Falcon’s shareholding in FOGA will increase to 200 million shares representing 96.90% of the issued share capital of FOGA.

The terms of the agreement include a cash consideration of $3m together with the issue of 97.86 million Falcon shares to Sweetpea.

Upon completion of the agreement, Sweetpea’s shareholding in the enlarged share capital of Falcon will be 10.7%.