09:23 AM EDT, 04/18/2024 (MT Newswires) -- Falcon Oil & Gas ( FOLGF ) was down 14% in London after the company on Thursday said it plans to raise up to US$8.5 million in a private placement of shares and royalty stakes in its Australian properties.

The company said it would offer institutional investors and new investors up to 133.3 million shares priced at six pence each to raise US$4.5 million.

It is also raising an additional US$4 million through giving Daly Waters Energy LP and an unnamed "US-based energy industry service provider" an overriding royalty interest in its properties in Australia's Beetaloo Sub-Basin.

Falcon said it is raising the funds to pay for its share of the drilling of wells at its Beetaloo properties and "the cost of the planned 330 (square kilometers) of 3D seismic survey around the Pilot area, which it is expected will be acquired during Q4 24 with processed results being available by Q1 25".

The company has a 22.5% stake in three exploration properties in the Beetaloo, a natural-gas rich area in Australia's Northern Territory.

Falcon shares were last seen down 1.1 pence to 6.7 pence on London's AIM market. They closed unchanged at $0.135 Wednesday on the TSX Venture Exchange.