By Alex MacDonald

LONDON--Falcon Oil & Gas Ltd. (FO.V) said Tuesday that its Kalala S-1 well in the Beetaloo Basin of the Northern Territory, Australia, found over 500 meters shale gas with net pay of more than 150 meters.

Falcon is developing the field with the help of Origin Energy Ltd. (ORG.AU) and Sasol Ltd. (SOL.JO), which have agreed to fund exploration in return for a 35% stake each in Falcon's exploration permits in the Beetaloo Basin, with Falcon holding the remaining stake.

The two companies will pay for the full cost of completing the first five wells estimated at A$64 million ($46 million), and will fund any cost overruns, with work expected to be completed between 2015 and 2016.

Write to Alex MacDonald at alex.macdonald@wsj.com

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(END) Dow Jones Newswires

September 01, 2015 02:34 ET (06:34 GMT)

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