Beetaloo Operational Update – Stimulation Campaign & Remaining Shenandoah South Pilot Project
24/01/2025 07:00
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Falcon Oil & Gas Ltd.
Beetaloo Operational Update – Stimulation Campaign & Remaining Shenandoah
South Pilot Project
24 January 2025 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to
announce the commencement of stimulation campaign at the Shenandoah S2-2H ST1
(“S2-2H ST1”) and Shenandoah S2-4H (“S2-4H”) wells in the Beetaloo
Sub-Basin, Northern Territory, Australia with Falcon Oil & Gas Australia
Limited’s (“Falcon”) joint venture partner, Tamboran (B2) Pty Limited
(collectively the “Beetaloo JV partners”).
Key Highlights of the Stimulation Campaign
* Stimulation campaign will be completed across: * S2-2H ST1’s horizontal
section of 1,654 metres (5,427 feet) and;
* S2-4H’s horizontal section of 2,977 metres (9,766 feet).
* Liberty Energy (NYSE: LBRT) who mobilised equipment and sand to location
before the end of last year will carry out the stimulation campaign on behalf
of the Beetaloo JV partners.
Shenandoah South Pilot Project (“Pilot”)
For the next drilling phase of the Pilot, which involves the drilling and
stimulation of the remaining four wells, Falcon has elected to reduce its
participating interest (“PI”) from 5% to 0%.
Key Highlights of the Reduced Participating Interest
* The election by Falcon to reduce its PI to 0% in the remaining four wells of
the Pilot will significantly reduce it’s 2025 capital expenditure.
* Falcon participated in the Shenandoah S-1H well in 2023 at its 22.5% PI
which created a Drill Spacing Unit (“DSU”) of 20,480 acres.
* Falcon participated in the S2-2H ST1 and the S2-4H wells in 2024 at its
reduced 5% PI which created two DSU’s totalling 46,080 acres.
* The Beetaloo JV partners are planning on creating an enlarged area around
the Pilot, known as the First Strategic Development Area (“FSDA”), which
would amalgamate the acreage and PIs from the DSUs mentioned above and any
further DSUs that may be created as part of the Pilot
* Depending on the ultimate size of the planned FSDA Falcon’s combined
participation entitlement in the FSDA post the Pilot could be up to 10%.
* Falcon also retains a 22.5% PI in the remaining 4.52 million acres in the
Beetaloo, net 1 million acres to Falcon.
Philip O’Quigley, CEO of Falcon commented:
“We are extremely encouraged about the potential of the current stimulation
program based on strong gas shows and other data observed whilst drilling both
wells. In addition, we are very confident that the experienced US operator,
Liberty Energy, will provide us with the greatest opportunity for the best
possible outcome from this stimulation program. We look forward to updating
the market on the IP30 flow test results as soon as they become available.
Reducing our participation in the next four wells has a minimal impact on our
overall interest in the Beetaloo which remains at 22.5%. This demonstrates the
optionality afforded by the DSUs, which enable Falcon to strategically and
efficiently deploy its capital. This reduction in our participation in the
next four wells significantly reduces our 2025 capital expenditure whilst at
the same time leaving us very well positioned to capture the overall success
of the Beetaloo.
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 & Broker)
Neil McDonald / Adam Rae +44 131 220 9771
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 – 46,080 acres(1)
Company Interest
Falcon Oil & Gas Australia Limited (Falcon Australia) 5.0%
Tamboran (B2) Pty Limited 95.0%
Total 100.0%
(1)Subject to the completion of the SS2H ST1 and SS4H 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 Corporation and Daly Waters Energy, LP.
Tamboran Resources Corporation, is a natural gas company listed on the NYSE
(TBN) and ASX (TBN). Tamboran is focused on playing a constructive role in the
global energy transition towards a lower carbon future, by developing the
significant low CO(2) 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.
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,
details on the commencement of stimulation activities at S2-2H ST1 and S2-4H
and the respective horizontal sections; Liberty Energy conducting the
stimulation campaign; Falcon’s election to reduce its PI for the remaining
four wells in the Pilot and it significantly reducing 2025 capital
expenditure; the planned creation of the FSDA and Falcon’s combined
participation entitlement in the FSDA post the Pilot could be up to 10% with
the planned amalgamation of the acreage and PIs.
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