06:50 AM EDT, 03/25/2024 (MT Newswires) -- Falcon Oil & Gas Ltd. ( FOLGF ) said earlier Monday it has optimized its interest in the Beetaloo by reducing its working interest in the proposed Shenandoah South pilot project from 22.5% to 5%.

As a result of the move, Falcon will only have to pay for 5% of the costs of the two wells to be drilled in 2024 as part of the pilot.

Falcon will retain a 10% working interest in the enlarged area of around 72,000 acres around the pilot and a 22.5% working interest in the remaining 4.52 million acres.

Falcon will also retain a further A$16.67 million of gross carry that will be used to offset against the costs of the pilot in 2024, further reducing the company's cost to participate.

The two wells in the 2024 drilling program will create two new DSUs totaling 51,200 acres, in which Falcon will participate and retain a 5% working interest.

Falcon at last look fell 11.6% in early London trading on Monday.