Falcon Oil & Gas Ltd. - Spudding of Shenandoah South 2H in
Exploration Permit 98
Falcon Oil & Gas Ltd.
(“Falcon” or “Company”)
Spudding of Shenandoah South 2H in
Exploration Permit 98
30 August 2024 – Falcon Oil & Gas Ltd.
(TSXV: FO, AIM: FOG) is pleased to announce the commencement of the
2024 drilling programme with the spudding of the Shenandoah South
2H (“SS2H”) horizontal well in exploration permit
98 in the Beetaloo Sub-basin, Northern Territory, Australia with
Falcon Oil & Gas Australia Limited’s (“Falcon
Australia”) joint venture partner, Tamboran (B2) Pty
Limited (“Tamboran B2”).
Following the drilling of the SS2H well,
Tamboran B2 will immediately move to the Shenandoah South 3H
(“SS3H”) well off the same well pad location ahead
of the stimulation program.
Both wells will be drilled with a H&P
super-spec FlexRig® Flex 3 Rig and will include a horizontal
section of approximately 3,000 metres and will target the Amungee
Member B-shale at an estimated target depth of 3,020 metres. Each
well is expected to be drilled in 30 days.
The wells will be stimulated with up to 60
stages utilising the Liberty Energy modern frac fleet currently
being mobilised from the US to Australia. The increased efficiency
and performance of the Liberty fleet is expected to result in a
material increase in the completed stages per day and optimised gas
flows.
Initial flow test results from each well are
expected in Q1 2025. Once flow testing is complete, both wells will
be suspended as future producers to supply the proposed 40 million
cubic feet per day (MMcf/d) Shenandoah South Pilot Project, which
is expected to commence production in H1 2026, subject to final
stakeholder and regulatory approvals.
The two well program will be the largest single
campaign in the Beetaloo Sub-basin to date. An additional four well
program is planned for 2025 which will complete the drilling for
the proposed Shenandoah South Pilot Project that will supply 40
MMcf/d to the Northern Territory government.
Falcon Australia will participate in both wells
in the Shenandoah South Pilot Project at its elected participating
interest of 5%.
Philip O’Quigley, CEO of Falcon
commented:
“The spudding of the SS2H horizontal well, which is the
first of the planned two horizontal wells to be drilled in 2024, is
an exciting next step in the development of the Beetaloo Sub-basin.
Following on from the success of the Shenandoah South 1H well
announced earlier this year, and using the same drilling company,
H&P, together with the arrival of the Liberty frac fleet,
capable of materially increasing the stimulation intensity, we are
really excited about being able to demonstrate the deliverability
of the Amungee Member B-shale over 3,000 metre horizonal
sections.”
Ends.
CONTACT DETAILS:
Falcon Oil & Gas Ltd.
|
+353 1 676 8702 |
Philip O’Quigley, CEO |
+353 87 814 7042 |
Anne Flynn, CFO |
+353 1 676 9162 |
|
Cavendish Capital Markets Limited (NOMAD
& Joint Broker) |
Neil McDonald / Adam Rae |
+44 131 220 9771 |
|
|
Tennyson Securities (Joint Broker) |
|
Peter Krens |
+44 20 7186 9033 |
This announcement has been reviewed by Dr. Gábor
Bada, Falcon Oil & Gas Ltd’s Technical Advisor. Dr. Bada
obtained his geology degree at the Eötvös L. University in
Budapest, Hungary and his PhD at the Vrije Universiteit Amsterdam,
the Netherlands. He is a member of AAPG.
About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd is an international oil & gas
company engaged in the exploration and development of
unconventional oil and gas assets, with the current portfolio
focused in Australia. Falcon Oil & Gas Ltd is incorporated in
British Columbia, Canada and headquartered in Dublin, Ireland..
Falcon Oil & Gas Australia Limited is a c.
98% subsidiary of Falcon Oil & Gas Ltd.
For further information on Falcon Oil & Gas Ltd. Please
visit www.falconoilandgas.com
About Beetaloo Joint Venture (EP 76, 98
and 117)
Company |
Interest |
Falcon Oil & Gas Australia Limited (Falcon Australia) |
22.5% |
Tamboran (B2) Pty Limited |
77.5% |
Total |
100.0% |
Shenandoah South Pilot Project -2
Drilling Space Units – 51,200
acres1
Company |
Interest |
Falcon Oil & Gas Australia Limited (Falcon Australia) |
5.0% |
Tamboran (B2) Pty Limited |
95.0% |
Total |
100.0% |
1Subject to the completion of the SS2H
and SS3H wells on the Shenandoah South pad 2.
About Tamboran (B2) Pty
Limited
Tamboran (B1) Pty Limited (“Tamboran B1”) is the
100% holder of Tamboran (B2) Pty Limited, with Tamboran B1 being a
50:50 joint venture between Tamboran Resources Limited and Daly
Waters Energy, LP.
Tamboran Resources Limited, is a natural gas
company listed on the ASX (TBN) and U.S. OTC markets (TBNNY).
Tamboran is focused on playing a constructive role in the global
energy transition towards a lower carbon future, by developing the
significant low CO2 gas resource within the Beetaloo
Basin through cutting-edge drilling and completion design
technology as well as management’s experience in successfully
commercialising unconventional shale in North America.
Bryan Sheffield of Daly Waters Energy, LP is a
highly successful investor and has made significant returns in the
US unconventional energy sector in the past. He was Founder of
Parsley Energy Inc. (“PE”), an independent
unconventional oil and gas producer in the Permian Basin, Texas and
previously served as its Chairman and CEO. PE was acquired for over
US$7 billion by Pioneer Natural Resources Company
(“Pioneer”), itself a leading independent oil and
gas company and with the PE acquisition became a Permian pure play
company. Pioneer has a current market capitalisation of c. US$60
billion.
Advisory regarding forward-looking
statements
Certain information in this press release may
constitute forward-looking information. Any statements that are
contained in this news release that are not statements of
historical fact may be deemed to be forward-looking information.
Forward-looking information typically contains statements with
words such as “may”, “will”, “should”, “expect”, “intend”, “plan”,
“anticipate”, “believe”, “estimate”, “projects”, “dependent”,
“consider” “potential”, “scheduled”, “forecast”, “outlook”,
“budget”, “hope”, “suggest”, “support” “planned”, “approximately”,
“potential” or the negative of those terms or similar words
suggesting future outcomes. In particular, forward-looking
information in this press release includes, but is not limited to,
information relating to Tamboran B2 immediately moving to drilling
the SS3H well off the same well pad location ahead of the
stimulation program following the drilling of the SS2H well, both
wells being drilled with a H&P super-spec FlexRig® Flex 3 Rig
and including a horizontal section of approximately 3,000 metres
and targeting the Amungee Member B-shale at an estimated target
depth of 3,020 metres, the wells being stimulated with up to 60
stages utilising the Liberty Energy modern frac fleet, the
increased efficiency and performance of the Liberty fleet resulting
in a material increase in the completed stages per day and
optimised gas flows, each well expecting to be drilled in 30 days,
initial flow test results from each well expected in Q1 2025, both
wells suspended as future producers to supply the proposed 40
MMcf/d Shenandoah South Pilot Project, production expected to
commence in H1 2026, subject to final stakeholder and regulatory
approvals and that the two well program will be the largest single
campaign in the Beetaloo Basin to date and that an additional four
well program is planned for 2025 which will complete the drilling
for the proposed Shenandoah South Pilot Project that will supply 40
MMcf/d to the Northern Territory government.
This information is based on current
expectations that are subject to significant risks and
uncertainties that are difficult to predict. The risks, assumptions
and other factors that could influence actual results include risks
associated with fluctuations in market prices for shale gas; risks
related to the exploration, development and production of shale gas
reserves; general economic, market and business conditions;
substantial capital requirements; uncertainties inherent in
estimating quantities of reserves and resources; extent of, and
cost of compliance with, government laws and regulations and the
effect of changes in such laws and regulations; the need to obtain
regulatory approvals before development commences; environmental
risks and hazards and the cost of compliance with environmental
regulations; aboriginal claims; inherent risks and hazards with
operations such as mechanical or pipe failure, cratering and other
dangerous conditions; potential cost overruns, drilling wells is
speculative, often involving significant costs that may be more
than estimated and may not result in any discoveries; variations in
foreign exchange rates; competition for capital, equipment, new
leases, pipeline capacity and skilled personnel; the failure of the
holder of licenses, leases and permits to meet requirements of
such; changes in royalty regimes; failure to accurately estimate
abandonment and reclamation costs; inaccurate estimates and
assumptions by management and their joint venture partners;
effectiveness of internal controls; the potential lack of available
drilling equipment; failure to obtain or keep key personnel; title
deficiencies; geo-political risks; and risk of litigation.
Readers are cautioned that the foregoing list of
important factors is not exhaustive and that these factors and
risks are difficult to predict. Actual results might differ
materially from results suggested in any forward-looking
statements. Falcon assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward-looking
statements unless and until required by securities laws applicable
to Falcon. Additional information identifying risks and
uncertainties is contained in Falcon’s filings with the Canadian
securities regulators, which filings are available at
www.sedarplus.com, including under "Risk Factors" in the Annual
Information Form.
Any references in this news release to
initial production rates are useful in confirming the presence of
hydrocarbons; however, such rates are not determinative of the
rates at which such wells will continue production and decline
thereafter and are not necessarily indicative of long-term
performance or ultimate recovery. While encouraging, readers are
cautioned not to place reliance on such rates in calculating the
aggregate production for Falcon. Such rates are based on field
estimates and may be based on limited data available at this
time.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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