Commencement of the Amungee NW-2H Well Stimulation Programme
16/02/2023 07:00
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Falcon Oil & Gas Ltd.
(“Falcon” or “Company”)
Commencement of the Amungee NW-2H Well Stimulation Programme
16 February 2023 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to
announce the commencement of the well stimulation programme at the Amungee
NW-2H (“A2H”) well.
The A2H well was drilled to a total depth (TD) of 3,883 metres, including a
1,275-metre horizontal section within the Amungee Member B Shale (formerly
known as the Middle Velkerri B-shale), in the Beetaloo Sub-Basin, Northern
Territory, Australia with Falcon Oil & Gas Australia Limited’s joint
venture partner, Tamboran (B1) Pty Limited (“Tamboran”) in December 2022.
Stimulation Programme Details:
* The programme will include up to 24 stimulation stages over a 1,200-metre
horizontal section within the Amungee Member B Shale, with operations expected
to be completed within 2-3 weeks.
* The A2H stimulation programme will be executed utilising proven US-style
shale stimulation designs and techniques, including the use of 5-½-inch
casing, by Condor Energy Services, a respected Australian energy services
provider.
* 5-½-inch casing will allow the optimal placement of sand and fluid at an
increased rate to the perforations during stimulation and has been proven to
deliver significantly higher production rates.
* Following stimulation, up to four-weeks of fluid flow back is expected to
take place prior to the installation of production tubing.
* The 30-day initial production rates are expected early in the second quarter
of 2023.
Philip O’Quigley, Falcon’s CEO, commented:
“We are delighted to announce the commencement of stimulation operations
with our joint venture operator, Tamboran Resources Limited. This is an
exciting phase of operations in the Beetaloo with the potential for obtaining
production rates that would support the joint venture moving to a multi-well
pilot development program in 2023/2024. We look forward to updating the market
on these very important flow rates as soon as they 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
Cenkos Securities plc (NOMAD & Broker)
Neil McDonald / Derrick Lee +44 131 220 9771
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 Tamboran (B1) Pty Limited
Tamboran (B1) Pty Limited is a 50:50 joint venture between Tamboran Resources
Limited and Daly Waters Energy, LP (Sheffield).
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 that 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”, “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 commencement of the stimulation programme and
progress to date at A2H, the execution of the fracture stimulation of the A2H
well, utilisation of proven US-style shale stimulation designs and techniques,
including the use of 5-½-inch casing, the prospectivity of the Amungee
Member/Middle Velkerri play and the prospect of the exploration programme
being brought to commerciality and a pilot production in 2023/2024. 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.sedar.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