Commencement of Initial Production Testing at Shenandoah South 1H
29/01/2024 07:00
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Falcon Oil & Gas Ltd.
(“Falcon”)
Commencement of Initial Production Testing at Shenandoah South 1H
29 January 2024 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to
announce the commencement of the 30-day initial production (IP30) testing at
the Shenandoah South 1H (“SS1H”) well in EP117, operated by Falcon Oil &
Gas Australia Limited’s joint venture partner, Tamboran B2 Pty Limited.
Following the completion of the 10-stage stimulation program announced on 7
December 2023 and the subsequent successful installation of production tubing,
the SS1H well was opened to allow sufficient flow back of stimulation fluid
ahead of commencing the IP30 test. For normal operational reasons, the SS1H
well was shut-in for a three week soak period and was successfully re-opened
on 25 January 2024. The aim of soaking was to allow for sufficient stimulation
fluid to be absorbed by the shale, increasing the relative permeability to gas
of the formation and enhancing future production performance. The IP30 test
has now commenced, and results are expected by the end of February 2024.
Proof of commercial flow rates as measured over the IP30 day period and which
Falcon estimates to be 1.5 million cubic feet per day (“MMcf/d”) over the
500 metre horizontal section (3.0 MMcf/d normalised over 1,000 metres) or
greater will allow the joint venture to progress the sanctioning of the
proposed 40 MMcf/d pilot project at Shenandoah South during the first half of
2024.
Philip O’Quigley, CEO of Falcon commented:
“We look forward to this next phase of operations with the initial
production testing of the SS1H well in the Beetaloo and will continue to
update the market as results become available.”
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 Head of Technical Operations. 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, South Africa and Hungary. Falcon Oil &
Gas Ltd is incorporated in British Columbia, Canada and headquartered in
Dublin, Ireland with a technical team based in Budapest, Hungary.
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 (“BJV”) (EP 76, 98 and 117)
Company Interest
Falcon Oil & Gas Australia Limited 22.5%
Tamboran B2 Pty Limited 77.5%
Total 100.0%
About Tamboran B2 Pty Limited
Tamboran (B1) Pty Limited is the 100% holder of Tamboran B2 Pty Limited, with
Tamboran B1 being a 50:50 joint venture between a subsidiary of 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$53
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 10 stage stimulation program; the
commencement of the IP30 testing; opening of SS1H to allow sufficient flow
back of stimulation fluid ahead of commencing the IP30 test; the normal
operational reasons for the shut-in to allow soaking of the SS1H well; the
aims of soaking to allow for sufficient stimulation fluid to be absorbed by
the shale, increasing the relative permeability to gas of the formation and
enhancing future production performance; the reopening to commence the IP30
and results expected by the end of February 2024; proof of commercial flow
rates as measured over the IP30 day period and which Falcon estimates to be
1.5 MMcf/d over the 500 metre horizontal section (3.0 MMcf/d normalised over
1,000 metres) or greater allowing the joint venture to progress the
sanctioning of the proposed 40 MMcf/d pilot project at Shenandoah South during
the first half of 2024. 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.
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