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.’

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