07:47 AM EDT, 04/23/2024 (MT Newswires) -- Falcon Oil & Gas ( FOLGF ) said Tuesday that its Beetaloo Joint Venture signed a binding agreement to supply Australia's Northern Territory with 13.8 billion cubic feet per annum of gas from the proposed Shenandoah South pilot project.

The supply agreement has an initial term of nine years, with an option from the buyer to extend it for another six-and-a-half years.

The BJV is targeting a final investment decision on a proposed 38 million cubic feet per day upstream drilling program in mid-2024. First gas flow is planned for the first half of 2026.

"This is a significant development for Beetaloo Joint Venture, and represents a major milestone and puts the Beetaloo Joint Venture on a path where revenue from gas sales will support funding our future development phases, including supply to the East Coast and [liquefied natural gas] markets," Falcon CEO Philip O'Quigley said.

Falcon's shares were trading 5.5% higher at last look in UK trading.