Beetaloo Operations Update
12/11/2024 14:25
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Falcon Oil & Gas Ltd.
(“Falcon” or “Company”)
Beetaloo Operations Update
12 November 2024 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) notes the
release of Tamboran Resources Corporation 1Q FY25 results and provides an
update on operations 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”).
On 30 August 2024 Falcon announced the 2024 drilling programme with the
spudding of the Shenandoah South 2H (“SS2H”) horizontal well in EP98 with
the Helmerich & Payne (NYSE: HP) FlexRig® super-spec rig. The SS2H well is
located approximately 2.7 miles (4.3 kilometres) north of the previously flow
tested Shenandoah South 1H (“SS1H”) well in EP117.
The SS2H well was successfully drilled to a total depth of 20,669 feet (6,300
metres) in 35 days, intersecting the Amungee B Shale as prognosed. This
included a 9,843 foot (3,000 metre) horizontal section that was successfully
geo-steered within the shale without the need for a pilot hole. Data from the
SS2H well has demonstrated geological rock properties consistent with the SS1H
location, with strong gas shows across the entire horizontal section and no
observed faulting. When preparing to run production casing a downhole
mechanical issue was unable to be remediated, which resulted in the SS2H well
being plugged and sidetracked.
The SS2H ST1 sidetrack well is currently at a depth of 16,201 feet (4,938
metres), and it is hoped that the drilling of the well will be completed in
the coming days.
Following the drilling of the SS2H ST1 sidetrack well, the Helmerich & Payne
rig will skid across the same pad in preparation for the drilling of the
Shenandoah South 3H (“SS3H”) well, which is planned to be completed with a
10,000 foot (~3,000 metre) horizontal section.
Liberty Energy’s frac fleet was successfully mobilized to the Beetaloo Basin
ahead of the 120-stage stimulation campaign (60 stages each) for the SS2H ST1
and SS3H wells. The program will be the largest stimulation campaign in the
Beetaloo Basin to date and is projected to deliver an increase to the number
of completions per day compared to historic completions in the basin. This is
expected to deliver increased completions efficiency, which drives completion
cost reduction.
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:
“We look forward to updating the market over the coming weeks as we continue
with these drilling operations in 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 – 51,200 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 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 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 (“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 the SS2H well successfully drilled to
a total depth of 20,669 feet (6,300 metres) in 35 days, intersecting the
Amungee B Shale as prognosed, a 9,843 foot (3,000 metre) horizontal section
that was successfully geo-steered within the shale without the need for a
pilot hole, data demonstrating geological rock properties consistent with the
SS1H location, with strong gas shows across the entire horizontal section and
no observed faulting, the SS2H ST1 sidetrack well currently at a depth of
16,201 feet (4,938 metres), and the drilling of the well being completed in
the coming days, following the drilling of the SS2H ST1 sidetrack well, the
Helmerich & Payne rig skidding across the pad in preparation for the drilling
of the SS3H well, which is planned to be completed with a 10,000 foot (~3,000
metre) horizontal section, the program being the largest stimulation campaign
in the Beetaloo Basin to date and projected to deliver an increase to the
number of completions per day compared to historic completions in the basin
and the expectation to deliver increased completions efficiency, which drives
completion cost reduction.
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